NEWROADS LEVERAGES BICOASTAL PRESENCE TO TRIM COSTS IN THE DIRECT RESPONSE TELEVISION INDUSTRY
Direct TV Leaders Save Money in Shipping and Returns
Handling
through the Scope and Scale of NewRoads’ Business
Process Outsourcing
GREENWICH, Conn. — May 20, 2002 — Clients of NewRoads,
the leading business process outsourcer of fulfillment
and customer care services, can achieve significant
cost savings through the company’s innovative use of
its size, scale and nationwide reach. For direct
response television (DRTV) marketers, in particular,
NewRoads’ bicoastal approach to product warehousing,
shipping and returns handling can reduce costs while
ensuring the buying public is happy with their
purchases.
With a network of more than 20 facilities nationwide,
NewRoads has the flexibility to customize the right
program for its clients that will meet their business
and customer satisfaction objectives. In the DRTV
industry, NewRoads helps its clients track sales
through infomercials and determine the best strategies
for product shipment from Asia or other overseas
markets, inventory storage and returns handling and
re-packing.
As more “traditional” companies like KitchenAid turn
to DRTV as a legitimate sales and marketing channel,
they must combine the need to outsource their
fulfillment business processes with streamlined costs.
For Paul McGladrigan, KitchenAid’s manager of national
sales accounts, this meant outsourcing the company’s
entire DRTV campaign to direct marketing agency
Respond2 and the fulfillment-related processes to
NewRoads.
“NewRoads handles all aspects of fulfillment to our
direct-buying consumers, including product warehousing
and inventory management, order taking and
fulfillment, package preparation and shipment and
customer support,” McGladrigan said. “Their bicoastal
approach has given us multiple options for reducing
our shipment costs at every step of the process of
getting product from our manufacturers to the end
buyer. Making DRTV part of our marketing effort has
helped us to both drive retail sales and direct sales
through our other, more traditional channels.”
NewRoads’ bicoastal presence gives clients several
different approaches to reducing their
fulfillment-related expenses, including:
· Returns Processing: With approximately 60 percent of
the U.S. population living east of the Mississippi
River, sending returned products to the East Coast
automatically lowers the cost of getting those
products turned back around as re-sales.
· Optimized Shipping: By working hand in hand with
clients on sales forecasts and minute-by-minute
updates of orders, NewRoads can quickly determine the
best possible shipping and warehousing approach based
on product demand.
· Direct Shipment from Overseas: Clients can direct
product shipments to whichever ports are more
cost-effective, e.g., Baltimore or New York from
Western Europe, or Los Angeles from Asia, to minimize
overland shipping expenses once products reach U.S.
shores.
· Economies of Scale: Through NewRoads’ presence as
one of the nation’s largest user of the U.S. Postal
System and other shipping venues, clients have the
added advantage of working with a business process
outsourcer with the scale to optimize ground shipping
methods and ensure product delivery at the lowest
possible cost.
“In 2001, NewRoads delivered more than $1.2 billion
worth of product for our more than 200 clients,
coordinated 16.2 million product shipments, and
fulfilled 66 million requests for literature and
catalogs,” said Fred Forsyth, NewRoads’ president and
chief executive officer. “The company’s depth of
knowledge, expertise in industry segments like DRTV
and retail, and ability to nimbly design the right
solutions for our clients’ needs separates us from
other would-be fulfillment outsourcers.”
About NewRoads
NewRoads provides business process outsourcing
solutions of fulfillment, customer care and supply
chain execution to deliver products, information
requests and rebates to customers who order over the
telephone, via the Internet, mail or by catalog. By
combining best-practices solutions and services with
its nationwide network of more than 20 distribution
and call centers, NewRoads efficiently and cost
effectively delivers its clients’ products and
enhances their customers’ brand buying experience.
Based in Greenwich, Conn., NewRoads serves more than
200 clients, including Restoration Hardware (NASDAQ:
RSTO), Godiva, Avon (NYSE: AVP), Procter & Gamble
(NYSE: PG) and Respond2. For more information, visit
the company’s Web site at www.newroads.com.
# # #
Shulamit Gershenson
Articulate Communications
617.699.0799
sgershenson@articulatepr.com
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