RE: UKNM: Re: ecommerce Xmas wet dream or nightmare

[Robin Edwards]

I agree, decent fulfilment is a necessary evil for running a successful 

e-business. The issue, like so many, is the chicken and egg scenario (which 

can also be attributed to greed and/or short-sightedness, but hey!). The 

entrepreneur knows good fulfilment would improve the service and sell more 

stuff, but they can't afford it at the outset. I've often thought 

fulfilment houses fit into a particular band - above the incredibly low 

volume retailer's budget, and below the highly successful venture's costs 

to do it themselves.


I'm sure most fulfilment houses will be falling over themselves to offer 

services to the well-funded start-ups at a considerably reduced fee on the 

basis of revenue share or equity, but it is down to the start-ups to build 

this into the business plan at the outset. Given the amount of professional 

services on offer for such deals (including ourselves, lawyers, ad agencies 

etc) the pie will have to be cut into pretty darned small pieces!


On the issue of reliable, guaranteed delivery to an address of your choice 

at a time of your choice, including Saturday, Sunday and out-of-office 

hours, I think it is asking a wee bit too much to expect this for a low 

cost!


Robin


--

Robin Edwards

Clockworx Design Limited

T: +44 1543 252370           F: +44 1543 420761

E:

robinclockworx [dot] co [dot] uk

     W: http://www.clockworx.co.uk/


On Wednesday, December 08, 1999 3:07 PM, Russell Buckley 

[SMTP:

russellthepartnership [dot] co [dot] uk

] wrote:

 > 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 



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