Order Fulfillment

TORONTO — For a good many years, I’ve periodically covered the Canadian catalog/direct/multichannel market — all, of course, from a U.S. perspective. Dating back to the early 1990s, I reported on catalogers’ experiences in expanding into Canada, usually focusing on brand-new efforts. More often than not, the results looked encouraging, the outlook appeared great. Most surveys showed that Canada was the number 1 logical choice for international expansion among catalogers. Yet, here we are in 2007, and finding catalogers that do any sort of truly significant business in Canada is just about as challenging as getting a ticket to a Stanley Cup playoff hockey

Before 2000, every aspect of back-end support operations for the direct marketing industry was tailored to meet the needs of typical catalogers and their customers. In the 1970s and ’80s, direct marketing was limited to the mailbox. The costs and requirements for information systems, fulfillment operations, inventory management and transportation functions were limited by technology and developed exclusively to meet the expectations of catalog customers. Consumer catalog orders were generated over a 12-week selling season. Inventory planning was based on historic patterns of sales and procurement, with sufficient lead time to forecast needs, buy products, transport them to the fulfillment center and fill customer orders.

When it comes to processing returns, it’s all a matter of approach. Certainly, nobody wants a lot of returns and processing. But if you approach returns processing as more of an opportunity than a burden, you may be surprised at the results. “The biggest mistake I see with the returns process is that returns are treated as an operational procedure. But it’s an excellent marketing opportunity,” says Debra Ellis, president of Barnardsville, N.C.-based Wilson & Ellis Consulting. “It’s personalized contact with the customer that you don’t get when a customer orders online or through the mail.” The bottom line is that customers who’ve had positive

As you can see, the contents in this month’s issue are quite operations-heavy. We’re always trying to balance our coverage, and with a more general focus for our big double-issue next month, as well as a broadly focused June issue, we’ll turn to technology-related issues in July. Perhaps the most interesting thing we found in putting this month’s issue together was that, although there typically aren’t a lot of drastic changes in the whole area of catalog/multichannel operations, fulfillment and management, there are nevertheless noteworthy changes taking place. For instance, take a look at consultant Liz Kislik’s feature on necessary changes in catalog order takers’ approach

Upselling, the Multichannel Way It’s Time to Master the Phone/Online Upsell By Liz Kislik Since the 1980s, when the majority of catalog orders began shifting from mail orders to the telephone, it’s become standard practice to not just take phone orders efficiently, but also to incorporate the upsell as a regular part of call center operations. But it’s 2007, and the typical catalog order isn’t necessarily over the phone anymore. Consider this scenario: Your customer calls to place an order and everything in the process goes smoothly. Your order taker follows standard practice and offers one or more upsells. In the classic

Head: Lillian Vernon: Back to the Future Lillian Vernon’s year-plus road to recovery has seen a mix of return-to-roots and get-with-the-times changes. Many have worked, as president/CEO Mike Muoio reports. Here are three additional improvements the company has made: 1. Change the catalog size to preserve the brand. In 2004, Lillian Vernon changed the trim size of its catalog from its traditional 8-inch-by-8-inch format to an 8.5-inch-by-11-inch size. But the change had almost no impact on sales, and since the brand had been associated with 8-inch-by-8-inch books for more than 40 years, Muoio and his team reverted back to the old format last October. “People recognize

Having topped out at $287 million nearly six years ago, Lillian Vernon’s sales have been falling ever since; it’s expected to finish out its fiscal year at about $170 million. But the bleeding could stop soon. A public company until 2003, the general mer-chandise cataloger was sold to investment conglomerate Direct Holdings, led by media company Zelnick Media. But despite an aggressive game plan to broaden Lillian Vernon’s reach, Direct Holdings’ initiatives largely backfired. Direct Holdings bailed out in May 2006 and sold Lillian Vernon to investment firm Sun Capital Partners, which installed former Miles Kimball CEO Mike Muoio to turn the company

We all recognize that inventory usually is one of our largest assets. Yet many of us don’t give it the importance or priority it deserves. Inventory management impacts almost every area of the company and can help contribute substantial hidden profits or losses depending on how it’s managed. The effect of poor inventory management often is hidden when business is good, and although quite evident when business is bad, businesses don’t have the resources at that point to address the issues. Unfortunately, this cycle is repeated far too often. Establishing a sound inventory management process within the ongoing company culture will cushion

As the holiday season orders pour in, catalogers at this time of year find themselves seeking ways to maximize the use of their contact centers. One potential solution for peak ordering periods worth considering is voice over Internet protocol (VoIP), which enables catalogers to increase the size of the contact center at will, or even hire additional reps to work from their homes, when physical space in their existing contact center runs tight. VoIP allows contact center managers to deliver both phone service and broadband Internet connectivity to customer service reps (CSRs) along the same connection. Voice and data both are converted to packets of

I’ll keep this column brief (I know you want this week to end. I can’t wait for the advanced stages of tryptophan sleepiness to set in after the turkey is done). Want to add some revenue before the end of the year? Try the following:

1. Add an extra mailing in before the end of the year. Try it this way: After your last mailing is complete, mail one more catalog just to your hotline buyers, those who just responded from your last mailings of the year. If it’s too late to get your printer involved, grab some of your bounce back and office copy