Catalogers possessing high-performing operational units concentrate on the following five fundamentals. 1. Optimum Location Superior merchandise fulfillment begins with facility location, which should provide average or better solutions to the following criteria: - An adequate labor supply of both full-time and seasonal workers, as measured in terms of costs, availability, stability and productivity. Note: This is the single most important location-related criteria. - Proximity of suppliers and customers to the facility, as measured in both inbound and outbound transportation costs and delivery time. - Local economics includes reasonable construction or building rental costs; availability of government incentives; and reasonable taxes (e.g., income, personal
Merchandising
From scrapbooking supplies to Coach bags, and catalog consolidation to television advertising, 2005 is ushering in some interesting trends for catalogers. Ben Perez, president of list brokerage and management firm Millard Group, and programming chairperson of The Direct Marketing Association’s Catalog Council, sees the following merchandise and industry trends that catalogers should be watching. 1. Luxury items are still hot, and mass marketers are doing well. “It’s the middle slice of the market that will continue to have trouble,” said Perez during his presentation at the Catalog-on-the-Road conference, held in Cambridge, Mass., in February. 2. Scrapbooking is hot. “Collecting is becoming a popular activity,” he observed.
Merchandise forecasting systems exist in a world unto themselves. And yet they’re basic tools that any mid-to-large-sized cataloger needs to compete successfully. Still, few catalog executives choose to make the investment in such solutions. In most cases, this reluctance is caused by two factors. On the one hand, no one in the company may “own” the issue of making strategic inventory decisions. Merchants may make product selections, buyers decide whom to purchase from, marketers determine price points, and inventory managers must find a place to store the items or arrange for drop shipment. Yet no one takes full responsibility for determining exactly how
A walk through Acorn Direct’s administrative headquarters in Silver Spring, Md., does little to persuade you that within its walls, a catalog powerhouse is emerging. To be sure, a glance at the posters of British film and TV shows that adorn this smallish seventh floor suite will help you understand how this direct marketer got its start. But you’ll need more information to understand how this nearly 4-year-old catalog used those film titles, along with the rest of its merchandise lineup, to grow its 12-month housefile a remarkable 200 percent from 2002 to 2004. Acorn Founder Pete Edwards, President Miguel Penella
Top-down merchandise planning entails a process in which centralized decisions about product assortments are made by corporate-level executives. Meanwhile, bottom-up assortment planning is done by managers of individual channels projecting sales within their respective channels. You’ll find advantages and disadvantages to each methodology, noted Joel Jackson, a senior consultant at Martec International, an Atlanta-based retail consulting firm. Understanding the pros and cons of each variation can help you decide which plan is best for your multichannel business, he said during the session”Best Practices in Merchandise and Assortment Planning” at the National Retail Federation Annual Conference, being held this week in New York City. Top-down
In an industry where improperly handled returns can erode 30 to 35 percent of potential profits (source: Gartner), todayï3/4¿s catalogers can turn the reverse supply chain into a powerful source of both profit and customer satisfaction. Managing the returns process more effectively through tighter control and visibility across the supply chain and a more personalized touch with each customer can help you uncover hidden revenue and increase customer satisfaction. Capturing this “hidden revenue” stream can yield numerous benefits. Here are a few: *Real-time visibility. Especially for online catalog companies, the Internet is increasingly being used to help automate the reverse logistics management process, because
Selecting and implementing a new order management system can be a daunting process. After all, this is a mission-critical suite of applications that can make or break your business. There are dozens of potential solutions and never enough time — or so it seems — to attend to all the details. There’s also the issue of technophobia. And sorting out the real from the hype in your technology options is unquestionably a tough challenge, even if you’re trying to keep up with the changes in this fast-paced field. Often the best way to achieve a successful outcome is to learn from the
quare inch analysis (SQUINCH) is an extraordinary tool for consumer and business catalogers alike. Sorted and executed the right way, a comprehensive SQUINCH can serve as a creative road map to your catalog campaigns, just as your contact strategy defines the plan from a marketing perspective. A comprehensive square inch analysis allows you to evaluate product sales and placement to determine whether the right product, price point or category is given the appropriate amount of space in the right location in your catalog. And by basing the analysis on customer behavior, as culled through transactional data, you can keep your “gut feeling” from being
This article will define RFID technology and offer examples of how it could help improve your distribution center operations. RFID uses radio waves to automatically identify physical items in varying proximity to readers that can uniquely identify them. The identification process entails the following: - the RF antenna broadcasts a signal; - the tag enters the RF field; - the RF signal powers the tag; - the tag transmits data to the reader; and - the reader interacts directly with the supply chain execution system. By now, no doubt, you’ve heard that Wal-Mart is requiring its top 100 suppliers to
Direct importing of merchandise may be a way for you to increase margins and improve your bottom line. Both financial institutions and overseas vendors are becoming more accustomed to working with importers and exporters. This, along with advanced technology, often can simplify the importing process. Following are key elements to help you decide if direct importing is right for your catalog company. Sourcing vs. Importing If you currently buy imported goods from domestic suppliers, distributors or resellers, you may be offering products at good value to customers, but you won’t enjoy the higher margins that come from importing products directly. But before
