UKNM: Re: ecommerce Xmas wet dream or nightmare

[Russell Buckley]

As a fulfilment consultancy, we've been discussing internally for some time

that this Christmas is going to be one big e-disaster, though the fact that

Dell is getting it wrong is even more a cause for worry than we were

predicting.


Here's a typical scenario - slightly cynical, but I've been through it so

many times.


Whizzkid entrepreneur exits VC with promise of lots of dosh. Calls Directory

Enquiries on mobile and asks for Fulfilment Houses in London. There's only

one (us) so they ask for a meeting now - they've got a killer site, plenty

of money and now all they have to do is sort out this 'fulfilment' thing.

The VC suggested outsourcing non-essential services, so here they are.

[Leave aside the argument that fulfilment should not be regarded as

non-essential].


The cost of superb fulfilment doesn't fit their business model and they

can't go to the backers to explain they need to revise everything to take

this into account. So, they go to a cowboy outfit whose costs do work. After

all how important is next day delivery? Do people really want an email

confirming that their order has been 1) Received 2) Despatched and an ETA?

Blimey consumers aren't that fussy are they? No, nobody's going to want to

return goods they ordered, this is a brilliant product. What do you mean

they may want to phone or email us? - the information they need will be on

the site, for heaven's sake. Doesn't the consumer understand the concept of

FAQ's?


The result I'm afraid will be indifferent to piss poor fulfilment and a

whole bunch of frustrated, disappointed and disillusioned consumers. It'll

put ecommerce back by 2/3 years.


If the fulfilment operation isn't designed properly and isn't well thought

through, you're going to be inundated with email and calls by justifiably

irate consumers. Plus you'll have star billing on Watchdog, which won't be

pleasant.


I'm not arguing that fulfilment is sexy, but it's impossible to overstate

how important it is.


Russell Buckley

The Handling Partnership

http://www.thepartnership.co.uk


 >

 > Date: Tue, 7 Dec 1999 16:50:14 -0000

 >

From: "Sam Michel" <samchinwag [dot] com>

 > Subject: UKNM: ecommerce Xmas wet dream or nightmare?

 >

 > So, I want to order a laptop (forgetting about the fact that it's coming up

 > to Xmas - far too much to do to worry about presents until the week before

 > Xmas), I do it online from Dell UK.

 >

 > Reliable outfit, I think, good record of build-to-order machines and my

 > friends who have their kit tell me they work well. I order, cough up the

 > dough and sit back and wait. After 5 days I think, hmmm...I'll see whether

 > it's built yet, their online order system will tell me.

 >

 > Gong! 'fraid not. According to their helpful support staff, they're

 > experiencing "a bit of a glitch". OK, fair enough so how long will it be?

 > They tell me a couple more days...

 >

 > So, 5 days later I call them up, I have to leave a message but they kindly

 > return my call, which to my chagrin I miss, to tell me it'll be another 7

 > days before the machine arrives. When I do finally speak to a warm (I

 > assume) blooded being on the other end of the phone, they tell me "we've had

 > too many orders"...

 >

 > Now, I narked, it's taken 3 weeks...so much for the convenience of online

 > ordering...victims of their own success?

 >

 > What really gets me though is that this is Dell, in terms of ecommerce

 > ordering and fulfilment, they're old hands, they've done this a million

 > (probably) times before. If they can't get it right and I assume they have

 > invested heavily in infrastructure, what chance to do the myriad of

 > start-ups with little or no (or outsourced) fulfilment services have?

 >

 > I suspect the New Year is going to be a fairly uncomfortable time for all

 > those companies who advertised like crazy to boost pre-Xmas sales...won't be

 > much fun for the credit card companies either...maybe I just need to lie

 > down for a while...

 >

 > Toodle Pip

 >

 > Sam



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