What’s driving your eCommerce channel?
Jagged Peak will host a test drive of its end-to-end eCommerce platform and fulfillment services at booth #1716 in the eCommerce Pavilion during the upcoming Internet Retailer Conference and Exhibition (IRCE) held at the McCormick Center in Chicago June 5 – 8.
To take the test drive IRCE attendees simply need to visit Jagged Peak’s booth to place their online order for a free gas card. Within seconds, they’ll be able to see their order processed, the pick ticket printed and their shipping label applied. The exceptional efficiency of this process is possible because Jagged Peak’s TotalCommerce solution leverages the EDGE eCommerce platform and the company’s optimized FlexNet fulfillment services to form a fully integrated eCommerce ecosystem.
EDGE ensures all orders are sourced to the optimal warehouse based on critical factors such as inventory availability, proximity to the customer and least-cost routing. The result is best-in-class SLAs, including 99.8-percent order accuracy, 98-percent same-day shipping and 96.8-percent next-day delivery in the U.S. using standard ground service.
The Myths About Channel Conflict
Most companies are hesitant to move into the uncertain, hostile environment of channel change for fear of conflict with their existing partners. So, it’s not surprising that conflict avoidance is at the core of many companies’ eCommerce plans. An Accenture research study indicates these fears may be exaggerated and those that choose to change can actually overcome channel conflict. Additionally, the study indicated that Internet strategies based on avoiding channel conflict usually disappoints because these strategies focus on delivering product information, rather than on leveraging technology to capture new opportunities.
The Myth’s Been Busted
Surveys indicate as many as 77 percent of direct online sellers have claimed the benefits of selling direct―such as increased overall sales, improvements to customer service and product development―far outweigh the perceived disadvantages. While almost a quarter of manufacturers surveyed were concerned about declining sales orders from their existing resellers, only 13 percent with a direct sales channel actually experienced declining orders, and 20 percent reported an increase in orders.
Strategically Manage Channel Conflict
Manufacturers considering a direct sales strategy must consider how to balance the potential rewards of directly engaging consumers with the potential risks of channel conflict. Once areas of possible conflict are understood, management must agree philosophically about what they’re willing to accept.
Here are some suggestions manufacturers can use to help them creatively compromise with their traditional channel partners so both parties can grow their respective businesses.
• Implement customer loyalty programs
• Offer exclusive products and services to boost channels
• Offer referrals for partners offering special product availability
• Review product competitiveness and pricing flexibility
• Engage resellers in a multi-channel selling strategy designed to increase sales across all channels, including selling direct to consumers online
• Learn more about Jagged Peak’s solutions.
eCommerce Platform Case Study: Giles & Posner
Giles & Posner manufactures an extensive range of commercial and home kitchen appliance products and supplies, including chocolate fountains, popcorn poppers, pie makers, pizza ovens and candy makers among many other entertainment-oriented appliances. Jagged Peak’s EDGE™ eCommerce platform is being used to manage inventory and the fulfillment of orders across multiple warehouse locations to optimize Giles & Posner’s supply chain processes. For more information, please visit www.gilesandposner.com
“We selected Jagged Peak’s EDGE platform because it has the scalability to support the rapid growth we’re experiencing. For example, we just signed an agreement with several large retailers to carry our products in the U.S., and having EDGE in place will enable us to fully support the increased demand this will generate. In addition, Jagged Peak offers an extensive North American warehouse footprint, which will ensure next-day delivery to the vast majority of our U.S. and Canadian customer base.”
—Darren Giles, CEO, Giles & Posner
eCommerce Platform Case Study: Progenex
PROGENEX manufactures an extensive range of sports nutrition supplements, which include MORE MUSCLE, RECOVERY, GROWTH and associated products. Jagged Peak’s EDGE™ eCommerce platform is being used to manage online order execution, inventory and transportation. Additionally, Jagged Peak’s FlexNet advanced logistics solution is being used to reduce shipping costs and time in transit to improve overall customer satisfaction through increased order accuracy and delivery service. For more information, please visit www.progenexusa.com
“With FlexNet, customer service calls, order reliability and transportation costs go down … simultaneously―which is what matters most to our customers. And, it’s been a boon for our brands because customer satisfaction levels and repurchase rates grow exponentially―which is what matters most to our business.” —Cameron Verdi, Director, PROGENEX
eCommerce Platform Case Study: Marriot Vacation Club
Marriott Vacation Club is a world leader in vacation property timeshare ownership, and is widely known for its signature properties, customer service and hospitality expertise. Beginning in early 2006, the organization began evaluating Digital Asset Management (DAM) solutions to consolidate hundreds of thousands of electronic files consisting property photos, executive head shots and property brochures among other items used in advertising and marketing Marriott Vacation Club properties throughout the world.
After evaluating a number of enterprise-level DAM, Marriott turned to Jagged Peak to deploy the EDGE eCommerce platform and its robust, user-friendly catalog management engine to provide storage and a catalog-styled publication of its digital assets. Available through Marriott’s internal brand compliance portal, called the “Brand Pool,” Jagged Peak’s DAM solution enables Marriott employees to search, preview and select from multiple file formats to download in a rules-based environment. The advanced search functionality lets users to search by a wide range of criteria, including type of property (e.g., golf course), location or even a specific photographer. The solution also provides rules-based reporting to tracks downloads. Jagged Peak hosts Marriott’s Brand Pool through a SaaS-based model, making it a very cost-effective alternative to many traditional DAM solutions.
eCommerce Platform Case Study: SunAmerica
Operating in a highly regulated industry, SunAmerica turned to Jagged Peak in 2003 to provide a secure online collateral order management solution capable of handling the highly complicated order capture and distribution requirements for its financial prospectus and policy information. Jagged Peak deployed the EDGE eCommerce platform in a hosted SaaS environment and leveraged EDGE’s powerful Demand Rules engine to handle literally thousands of governmentally mandated rules―including HIPAA compliance―that apply to SunAmerica’s investment products. EDGE also handles the complex kitting requirements with warehouse instructions that encompass the hierarchical arrangement of collateral in a folder, substitution rules, revision controls and expiration dates.
Jagged Peak built and hosts SunAmerica’s online collateral management portal, which is login and password protected, so only affiliated insurance agents can access the site. The solution also supports secure call center order entry. Giving agents the ability to download materials, have them faxed or emailed to them, or use a print-on-demand feature to ship fully assembled kits to their office or a customer’s home address has streamlined SunAmerica’s collateral fulfillment processes, saving both time and money.
eCommerce Platform Case Study: TAG Heuer
TAG Heuer is one of the world’s largest and most respected luxury watch brands. Its name is synonymous with watch-making innovation, and it is also known for its innovative approach to advertising and marketing. As an example, in 2006, TAG Heuer became the first major Swiss watch maker to begin selling its products online. And―in typical TAG Heuer fashion―it did so in a very unique way.
To accomplish the goal of enabling its customers to buy online while still supporting its retail partners, the watch maker turned to Jagged Peak to leverage the flexibility and extensibility of the EDGE™ eCommerce platform. The resulting EDGE solution has enabled TAG Heuer to launch hundreds of eStores from a single operating environment where they control the product catalogs and merchandising. This enables TAG Heuer to protect its brand and avoid unwanted product discounting. It also extends fully functioning eCommerce websites to participating retailers, enabling them to dynamically manage their own content and graphics. Another key component of Jagged Peak’s solution was the deployment of an easy-to-use web portal through which TAG Heuer’s retailers manage back-office activities and processes related to inventory, customers, orders and fulfillment.
Today Jagged Peak provides ongoing application and website hosting, as well as technical support and monitoring tools for well over 120 eCommerce websites for TAG Heuer and its retail partners.
