This story appeared in the May-June 2001 edition of US retailing.org magazine.
by Marshal M. Rosenthal
Fulfillment has come a long way in today's technology-driven Internet age. But bordered by tighter governmental regulations and increased demands for quality from customers and client companies, there has never been a greater need for smoothly-running, customer-oriented fulfillment systems. Which means not just a tighter, more integrated method of doing things, but a way to make more money through the system as well.
Trimming operating expenses is one benefit that comes from proper fulfillment. Take the case of Ronco Inventions, LLC. Founded by Ron Popeil; inventor of such well known products as the Veg-a-matic, Mr Microphone, Smokeless Ashtray and most recently Showtime Rotisserie & BBQ. His most recently completed production is "Ronlogic".
According to Tim Dupler, president of Ronco Inventions, LLC and Popeil Inventions, Inc, Ronlogic is a custom-built infomercial-targeted software program that is web browser based to control and provide accountability for Popeils numerous outsourced programs, as well as his own internal customer service center, data entry, accounting, and warehouse facilities. "For many years Mr Popeil relied on outsourced companies to provide management services, data and accountability say Dupler, "opting to pay higher prices for service rather than accumulate overhead.
This practice is not uncommon in the infomercial market because of the tremendous fluctuation which occurs as products run their cycle. However, due to continual frustration caused by needing information that was continually unavailable or inaccurate, Popeil began reviewing resources currently on the market to take control of his customer account information. Although several programs were on the market, there were none that could satisfy Popeil's needs in the direct response television business.
Therefore, Dupler says, Popeil commissioned a project two years ago to develop a fully functional, infomercial-designed software package that included the necessary "checks and balances" not found on the market. Infra Corporation, based in Seal Beach, California, was chosen for the project due to their proprietary "Infra-Help" system, designed for call-center operations and the linking of multiple locations, useful for a company that grows rapidly requiring outsourcing when a product is too hot to handle with existing staff-and when the company does not want to increase fixed overhead.
The call center and data entry functionality in Infra provides comprehensive information to the operators including linked orders, account maintenance, credit card maintenance, prompted call scripts for upsells and customer complaints. Outsourced sales such as a 24-hour order center, web sites and outbound call centers are logged daily with number of files sent, number of files received, and number of errors occurred. Any errors are automatically sent to Ronco's customer service department to correct and process without delaying the customer's order.
The major benefits of the system include the ability to pull virtually any information at the touch of a button, inventory control, product quality control, and operator efficiency tracking. In addition, there is return, refund, and cancel order accountability, continuity program control, a clean regulatory compliance record, and virtually no Better Business Bureau complaints. Not to mention impacting the bottom line.
"In fact", concludes Dupler, "Since system installation on January 1, 2001, Ronco was able to trim in excess of one million dollars in operating expenses directly related to the software." Plus, as a result of having the ability to easily change vendors, Dupler says that Ronco has gained more control over its efficiency and productivity.
Companies like Ronco are forging their own destinies using technology that automates their services, while enabling them to open the door to market globalization even as it reduces their costs and provides for greater service to customers. Companies can succeed as e-commerce opens up the world to them-provided they stay focused on their goals and customers, and use the technology to help them keep pace in today's e-era.
Marshal M. Rosenthal is a Los Angeles-based freelance writer.
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