In an operation like QVCÆs, fulfillment is critical. QVCÆs customers expect rapid delivery of products, and QVC has gone beyond traditional shipping approaches to achieve that quick turnaround. One of the strategies used is crossdocking, in which shipments from different sources can be consolidated to reduce the cost of outbound transportation and eliminate the inventory-holding function of a warehouse (ôCrossdockingö). Instead of the usual method of receiving shipments of goods, storing them, and then shipping them out again, crossdocking transfers incoming shipments directly to outgoing trucks without storing them in between. Shipments generally spend less than 24 hours in the warehouse this way, and in some cases they are there less than an hour (ôCrossdockingö). products can be delivered to the customer on time. iQVC communicates with drop-ship suppliers through a fulfillment hub system instead of value-added networks (VANS) and realizes 25% lower labor costs, half the number of backorders, and 20% lower vendor order confirmation time (Roussel-Dupre 2001). This inventive approach allows iQVC to receive orders 24 hours a day, 7 days a week from anywhere in the world, making previous stocking and t |
