IRCE 2008 Session Descriptions

Some of the promise of the Internet lies in the ability to manage distributed functions. Nowhere is that truer than in fulfillment and distribution. Online retailers can start up with very little investment in inventory by adopting a drop-shipping strategy, in which the manufacturer houses the inventory and ships individual orders at the retailer's direction. A step up from that is to hire a third-party fulfillment company to inventory the merchandise and fulfill orders. And there's the in-house option, whereby a retailer stocks the merchandise and fulfills orders. There also are hybrid options that mix two or even three of these approaches. On top of that are the issues surrounding choosing a carrier. DHL, FedEx, UPS and the U.S. Postal Service all battle for e-retailers' shipping business, meaning even the smallest online retailers can negotiate deals with the carriers that will not only lower costs but speed up delivery. This session will examine the benefits and drawbacks of all the approaches in terms of control of the process, investment in inventory and responsiveness to customers. It will help retailers make their fulfillment and inventory decisions based on their company's objectives and investment goals. And it will specifically address how to negotiate with carriers for the best pricing and delivery terms.