| Column Spring 2008 |
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The early success of Web Shopping was in ‘information only’ services (eg travel, music), but nowadays the momentum is shifting to the ‘real product‘ business (eg electronics, pharma). However, before you jump, please keep in mind that going to the web with ‘real products’ is not an easy exercise. First, the inventory management needs to be changed. Instead of local stock in retail shops, inventory will be centralized at the national or European level. Next to that, the required transportation will change. FTL shipments to DCs and pallet delivery to retail shops, will be replaced by smaller parcel delivery directly to offices and homes. Finally, the order management needs fundamental reshaping. Order acceptance, stock allocation and transport subcontracting need to be arranged at the individual customer level. Also, think of the special challenges in invoice management, customer service and returns handling. So, after the ‘magic order click’ in the web shop, many things need to happen, and they for sure don’t run automatically! Service Providers for Logistics and IT can help you in the supply chains behind your web shop. You may need a Supply Chain Suite! Dr. Ir. Martin Verwijmeren Director MP Objects |
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