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August 7, 2000
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Retailers Upgrade Systems To Fix Their Problems
By Beth Bacheldor and Steve Konicki
o avoid a repeat of their problems, not to mention further FTC penalties, several online retailers have upgraded their systems.
KBkids.com dropped Keynote Internet Services Inc., the third-party fulfillment company it was using to deliver goods, and will handle its own shipments. Later this month, it will transform its 300,000-square-foot facility in Danville, Ky., from a brick-and-mortar fulfillment center to an Internet-only operation. Inside the facility, KBkids.com has installed a new warehouse-management system called Logistics Pro from Intrepa LLC and an order-management system from Smith-Gardner & Associates Inc. These will be tightly linked to a new customer-service system KBkids.com is turning on in two weeks. At its core is an Oracle database that will hold all customer information, including where an ordered item is in the fulfillment process. KBkids.com also will add hardware to increase site scalability and stability, and perform load testing in September.
CDNow.com Inc. made changes in the policies governing its shipping and back-order processes. For instance, instead of telling customers that orders will be shipped in one to four weeks, the company now gives more specific shipping times. The changes required the IT staff to change the statements on the site, then coordinate those changes with the company's customer database and E-mail system, which automatically sends messages to customers about the status of their orders.
Patriot Computer Corp. built an automated customer-response system that automatically sends a customer a letter if delivery will be delayed. The company is also installing a new accounting system, and once the holiday season is over, it will install a factory-floor application to manage production, warehousing, and inventory. Patriot is also negotiating with logistics companies to ensure on-time delivery. None of these improvements was prompted by the FTC fine, but by the company's failure to deliver last year, says chief operating officer Dave Morrison. "We never missed an on-time delivery in the past," he adds, "and we don't want to again."
ıToysrus.com Inc. will build a new customer-service operation based on software products from i2 Technologies Inc. and Siebel Systems Inc. I2's TradeMatrix Internet demand and fulfillment tools will give customers accurate, up-to-date information about delivery dates and order status. The E-retailer will also use i2's global logistics manager, which can provide real-time alerts when a shipment is delayed. Siebel Systems' Call Center, eMail Response, and eService applications will be used to assist consumers. Toysrus.com also hired a new executive team to lead its logistics, finance, IT, and customer-service efforts during the coming holiday season.
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