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News Stories Friday, October 19, 2001   
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Fulfillment becoming more than pick-pack & ship; it’s a way of standing out


Customized fulfillment is becoming more popular among retailers as they seek new ways to make themselves stand out from the crowd of online retailers. And fulfillment vendors are responding to the demand with an array of new services.

From special monogramming to handwritten gift cards, as well as the software that keeps track of such requests, retailers are managing more of the fulfillment process then ever before, as customers who become accustomed to the web demand greater flexibility and better service—all delivered to their doorstep in a timely fashion, say retailers.

But as demands for customization have increased, outsourced fulfillment vendors are realizing that they too must change their operations if they are to succeed. As a result, many are offering services that go beyond simple pick, pack and ship. “It’s a big trend now for us to do more than warehouse, pick, pack and ship,” says Frank di Maria, president and CEO of APL Direct Logistics, Jacksonville, Fla. “To provide more products, online retailers are having to go to more obscure suppliers and they need someone to not only manage the goods coming from that supplier so they can keep track of inventory, they also need packing lists and quality control.”

As a result, retailers who want more than simple fulfillment these days are finding they have to manage different suppliers to get the variety of fulfillment options for various customers. “Retail customers want more than just warehouse capabilities from a vendor,” says di Maria. “It’s becoming more about managing outside the four walls.” He cites an example of managing a direct supplier for a retailer: “Some retailers may not want to warehouse all their products. If they need a product from a small custom supplier, such as a wreath maker, the retailer will need some way to make sure that the supplier is providing the right product and the right packing lists that are then sent from the supplier direct to the consumer. Vendors now are getting involved in doing this.”

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