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As governments consider emergency measures to address the current financial crisis and an economy sliding into recession, retailers need to manage the high cost of carrying inventory, and find ways to control its impact on operating costs. CommerceHub®, the Supply-on-Demand platform for supply chain integration and fulfillment solutions, has developed an industry report on implementing or expanding a Supplier-Direct Fulfillment strategy to control the high cost of inventory and logistics, “Managing the High Cost of Inventory in Today’s Challenging Economy”. With funding markets locked up and lending rates high, many retailers are in a crunch to finance inventory capital. Many multi-channel retailers are using a Supplier-Direct Fulfillment (SDF) strategy to reduce inventory and associated expenses. In SDF orders are sent directly to suppliers, manufacturers and distributors, who fulfill and ship merchandise directly to customers. The retailer never holds the inventory on their balance sheet and typically only purchases it after receiving payment from the customer.
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In 2011, CommerceHub® grew overall revenue by more than 20%. The CommerceHub® network grew by more than 103% on Black Friday. CommerceHub® has CommerceHub® has |
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