Tag: order fulfillment
Learn how the choice of an outsourcing partner is crucial in transforming a company’s catch-as-catch-can or by-the-seat-of-your-pants processes to world-class operations.
Remedy Corporation is a US software developer and manufacturer of adaptable enterprise applications. The solutions are fast-track, in-depth, scalable, easy to modify; and they quickly became very popular. Soon the small company had more than 9,100 customers in 70 countries. Remedy also handled all of its distribution of the products, and therein lies the problem. As the company grew, to keep in pace with all the development that was coming out of engineering, I just had to keep adding bodies, recalls Robert Cassese, Manager of Worldwide Logistics for Remedy. Cassese says it was a lot of work. We were doing it on the flimflam. For example, I’d go up to the stock room and say take these things, and these things, and this thing, and put them in a box, and put a label on it, and we’ll ship them. And if we needed to send a user manual, installation guide, marketing materials, I’d have to go find a printer and some guy to do it. Smart money said others could do it better than we could.
This past year companies have shifted their focus from ecommerce to elogistics outsourcing, reports Romala Ravi, an analyst with International Data Corporation (IDC) in Framingham, Massachusetts. Ravi specializes in elogistics outsourcing. She defines elogistics as an IT-enchanced and integrated function that stretches from the front-end online store all the way to the end customer. This process includes: Order management Warehousing and fulfillment Returns management Transport and delivery Customer service issues Hype about ecommerce dominated the logistics world for the last 24 months. Ravi says corporations spent significant sums building their front end capabilities. But the real challenge surfaced when the order was placed. Delivery became a problem. Then the 1999 Christmas season arrived and volume soared. Companies couldn’t deliver because of spikes in volume, notes the analyst.