Wednesday, December 21, 2011

Fulfillment Outsourcing Can Overcome Holiday Challenges to Improve Your Brand

For the first time in nearly seven years, since I started this blog, I am including a contributed article.  The article below is written by Jesse Langley, who I can only assume is a freelancer for Fifth Gear, an order fulfillment firm.  Either way, I was not paid to run this article, but since it is seasonal and since I don't cover fulfillment much I thought I would share it.




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Successful order fulfillment and strong branding are inextricably linked, and the hectic holiday season presents greater challenges than some retailers can manage. But using fulfillment outsourcing can meet and exceed any challenge that Black Friday, Cyber Monday and Christmas gift giving may present. 

Veteran retailers understand that outstanding order fulfillment services involve much more than simply wrapping up a product and shipping it. This is a wonderful opportunity to strengthen your brand and build customer loyalty. In the longer term, this target is much more important to your consistent profitability than just timely product receipt. 

Smart e-commerce

E-commerce retailers must deliver products to consumers in a timely manner. Forward thinking companies also realize that this opportunity to engage their customers helps their brand reinforcement and identifies the organization as one that stands above the madding crowd. Use that shipping container and its contents to further emphasize your specific brand and your company's winning biography.

Understand that branding is not a marketing campaign with an end date. Your evergreen branding efforts must first promise superior products and outstanding customer service. Then you must deliver on those promises. Should you be successful with the promise-making phase and not deliver on those promises, you will set customer expectations that you cannot satisfy. This result may be more damaging than ignoring branding efforts.

However, making promises your customers want--and delivering that which you promise--will engage your customer base much more than millions of dollars of media or mail advertising ever could. The level of credibility your company will enjoy will be as strong as positive word-of-mouth recommendations from friends and family. You simply cannot buy this wonderful level of customer confidence. 

Enhancing your brand with order fulfillment

As e-commerce explodes, using order fulfillment as a branding tool can also become more popular and effective. Of the almost 180 million consumers that research products online, 83 percent will make an Internet purchase of goods or services. Using order fulfillment as a branding strategy component should be self-evident.

Whether you employ in-house order shipping or choose fulfillment outsourcing, use this function as a valuable marketing tool. Think a bit outside the box (pardon the pun) by taking advantage of the myriad of branding and marketing opportunities, including branded shipping materials that are environmentally-friendly, recyclable packaging and other enclosed items that reinforce your "mission." 

For example, consumers who perceive your company as an environmentally conscious organization register a long-lasting positive image in their minds. Even those customers who have yet to embrace the importance of green living will receive your message with heightened credibility for your company. Those customers who "walk the walk" of environmentally-friendly living will welcome your message and become engaged.

Regardless of the benefits retailers enjoy from social media marketing, using order fulfillment, as a branding tool can be more effective. Getting an order to the right customer at the right time with brand-enhancing materials and packaging will generate a return on investment (ROI) that will excite owners, management and shareholders. 

Source: Whitepaper



Monday, November 21, 2011

Logistics of the Holiday Season

From our friends over at Derby. Some incredible stats. Enjoy.

Logistics of the Holiday Season
Logistics of the Holiday Season

Friday, November 04, 2011

What are you saying HSBC?

I just opened up The Economist after lunch to find a strange ad with the headline "In the future, the food chain and the supply chain will merge" by HSBC a.k.a the Hong Kong Savings Bank Corp.  The ad goes on to say "HSBC is one of the world's leading supply chain organizations." WHAT????  Did I miss HSBC in the latest AMR/Gartner Top 50 supply chains?  I am not quite sure, which statement is more perplexing.

First, the food supply chain and the supply chain are one already.  Cargo ships and cargo planes carrying electronics, paper goods and food all use the same ports, trucks and planes.  There is only one global supply chain.  And unless they are printing money at HSBC, I fail to understand how they claim to be "one of the world's leading supply chain organizations".

In digging deeper on the HSBC website they talk about "trade and supply chain":

As one of the largest trade and supply chain organisations in the world, we have local trade experts available to support you wherever you do your business. We can help put you in control of your operations and assist you to streamline your trade processes with our advanced technology. Our aim is to ensure that your import and export transactions are managed effortlessly and effectively, providing your business with the best possible opportunities to grow.


Okay, so you may have a few experts that can get a box through customs, that is only a step of the supply chain.

And then comes the real kicker, they show all of the awards they have won, which are about "trade finance" and "finance provider".  Sorry, but being the cash behind the supply chain, while valuable, doesn't make anyone an expert in the end to end supply chain, from sourcing to end of life.

Are you going to help with my C-TPAT compliance?  Will you help me find the best logistics provider in Namibia? Or make sure my suppliers are meeting ethical standards?  I'm not so sure.  When I need a loan, we know who to call.

Thursday, September 29, 2011

Reader Email

For the first time since I started this blog in 2005 I will be posting an email from one of my fantastic readers.


The following comes from Kaity Nakagoshi, Bisk Education, University of San Francisco (which offers a course in Sustainable Supply Chain Management).  She writes:


Greetings Chris!

I started to comment on your “Thinking End to End on Product Packaging” post but then I realized I had too much to say, and composing an e-mail would be more appropriate J

I’m jealous that you were in San Francisco last year. I live in Florida but of all the places on the west coast, it is the place I want to visit most. I’m a sucker for some crab cakes and trendy cities. I actually work for the University of San Francisco's online certificate program and I'm not surprised about the decrease in carbon emissions. The school is one of the few that offers a masters certificate in sustainable supply chain management. As your witty blog heading points out, supply chain management is often overlooked by consumers, and even by managers. Even worse, not all companies are on board with the “environmental footprint” movement. Implementing a sustainable supply chain effectively is a sure fire way to gain positive public opinion and stay competitive in the industry.

Now back to your post. I love that you were at the farmer’s market. I bet San Francisco has great ones! There is one by my house every 1st and 3rd Saturday of the month at an outdoor shopping mall. I look forward to it every time because I am willing to pay a little bit more for quality products in order to support local businesses. I have a dream of starting my own small business (something with food J) and would hope locals would support me as well. Last time I went to the farmer’s market I bought pierogis (I put apple sauce on them!) and honey. The honey vendor said that consuming the honey of the current season might help with my allergies.

As for the actual bottle of cranberry juice….the plastic vs. glass strategy is, like you said, “simple, yet effective”. I mean sure, glass looks pretty and it can be recycled. But plastic can also be recycled, and it doesn’t break (loss of inventory). Some companies, like Starbucks and Zephyrhills Spring Water, have even figured out how to reduce the amount of plastic used in their products. As a consumer, it is nice to see positive changes like that. And as a manager, I’m sure it is nice to see a decrease in costs.

Happy day!

Kaity Nakagoshi



Thanks Kaity, I did have a Happy Day.

Monday, September 12, 2011

Container Shipping's Post-9/11 Security Overhaul



9/11 forced a new security regime on seaports and ocean-going container ships. The U.S. and its trading partners around the world overhauled their screening and surveillance to safeguard containers without throwing off the sensitive supply-chain of the world economy. MarketWatch's Alexander Davis reports from Oakland, Calif.