Order Fulfillment

In the IndustryEye section of this issue on pgs. 12-13, you’ll find our second quarterly Catalog Success Latest Trends Report, a benchmarking survey we conducted in late November in partnership with the multichannel ad agency Ovation Marketing. This one focuses on key catalog/multichannel issues, and we’ve included most of the charts there, so I encourage you to take a look. You’ll be able to find some charts only on our Web site due to magazine space limitations. We also didn’t have the space to include the numerous comments that you — our readers and survey respondents — wrote in response to two of the questions.

I must admit I’ve frequently scrutinized those Lands’ End “ghettos” in Sears stores ever since Sears acquired the pride of Dodgeville, Wis., five and a half years ago. For a few years, Sears tried to sprinkle Lands’ End products amidst its mostly forgettable array of private label and largely undesirable polyester clothing. But I’m happy to report Sears is getting closer to getting the Lands’ End integration thing right. And when I received a 12-page mini-booklet — not quite a catalog, per se — I was truly blown away. The 63⁄4-inch x 51⁄8 inch outer cover wraps around eight 63⁄4 inch x 4 3⁄4

Have you had a productive year? Do you want another one? Look back over the production cycles you’ve performed this year in merchandising, creating, printing and mailing your catalogs. Each part of the process has one or more important points of production. The point of production is the part of the process where the real work gets done — specific items are selected, images are placed beside copy, ink is put on paper, and your catalogs are delivered to bulk-mail centers. As a circulation director several years ago, I found it very important to see firsthand the points of production. So I made it

Reading retail sales, housing sales and consumer confidence reports the past couple of weeks while watching the stock market sink, I’ve become quite worried about the outlook for the holiday season for catalog/multichannel marketers. Retailers collectively reported their worst October in 12 years, and a Conference Board report last week said consumer confidence dropped in early November to its lowest level since Hurricane Katrina triggered soaring oil prices two years ago. Meanwhile, recent reports from the National Association of Realtors showed sales of existing homes had plunged to their lowest level in nearly a decade. None of this bodes well for catalogers. So

Many multichannel merchants focus on how they can lower operating costs when they consider outsourcing certain tasks. But when you outsource operations, you also outsource the investment. Sounds obvious, but maybe the magnitude isn’t all that clear until you’re faced with replacing an order-management system, moving into a new fulfillment space or upgrading your Web site. When outsourcing your investment, you don’t have to invest in those upgrades as your business grows and changes. Let’s look at some examples that show the size of these investments. * Order-management systems. Software as a service (SaaS) can free up a potential investment of $25,000 for an

Say what you will about this wonderful trade we call the catalog/multichannel business, but whichever way you spin it, you can’t go very far if you’re unprofitable. That’s why above all else — the marketing, the merchandising, the creative, the e-commerce, etc. — we’re most interested in helping our readers make more money. So we bring you our annual binge of tactics and tips extracted from all of this year’s issues of Catalog Success, our weekly e-newsletter Idea Factory and our biweekly idea exchange e-newsletter, The Corner View. Our editorial staff went through every article we’ve produced this year to give you a nice,

A common thread to all warehouse operations is the quest to manage expenses. The most critical and manageable expense item on your P&L statement is labor. Managing labor efficiently will generate immediate results in your quest to manage expenses. This begins with capturing daily man-hours used by department or activity in categories such as receiving, put-away, replenishment, pick/pack/ship, inventory management, supervision, etc. Capturing the man-hours used can be done with sophisticated warehouse-management system software or a more manual approach. But no matter the method used, you must know how many man-hours are used each day, in each activity. Once you’ve successfully determined

Employ a Detailed Approach to Merchandise Analysis

From a “bottom up” view, catalog/multichannel marketers must consider every aspect of an item’s performance or life cycle to ensure every touchpoint to profitability is being considered properly. An item’s profitability is impacted by much more than simply demand and margin. I offer a top-down approach, which is extremely critical to the planning process. I also go to the opposite spectrum, however, and consider detail levels that often are overlooked when considering an item’s true profitability. If you hold your products to higher standards by factoring all their costs up front, you can gain greater profit to the bottom line. Let’s break down these

The rapid development of sophisticated technologies has been tantalizing. So much so that it’s been suggested companies can improve efficiency by replacing expensive, variable-cost human labor with incredibly efficient hardware and software, both fixed costs. Such promise has led to change in the call-center business, beginning with call-routing menus and leading to sophisticated, interactive voice recognition systems. Despite countless horror stories of customers lost in “promptland,” most of this technology has been developed with the best intentions. Yet numerous studies have shown this promise often has remained out of reach. A recent Aspect Contact Center Satisfaction Index survey found that 55 percent of customers