Consumer Direct DCs: Handle With Care

New Tompkins Associates, Tech Conveyer white paper reveals top implementation mistakes

RALEIGH, NC, April 17, 2008 -- With the explosion of e-commerce, direct to consumer (DTC) companies are beginning to realize that their reputations are immediately impacted by the success of their distribution center (DC) implementations.

In the white paper, What's So Special About Direct to Consumer Distribution Center Implementations?, authors Bill Vincent and Tom Singer of Tompkins Associates and Ted Peyrek of Tech Conveyor, Inc. outline the most common missteps that companies make when building a Consumer Direct DC. Leading with technology while ignoring other key factors can have disastrous results. Companies typically make this mistake because:

• Previous experience with a particular material handling technology or warehouse management system (WMS) influences the process. The project may also become focused on software and WMS functionality rather than true operational and business needs.
• They are trying to outdo competitors by putting to much emphasis on automation. The reality is, many times (especially in fledgling DTC operations) the flexibility afforded by manual operations far outweighs the benefits of automation.
• Integrators or equipment manufacturers may propose a system that is built around equipment that delivers the highest margin to them -- regardless of whether the technology is right for an application.

As noted in the white paper, most failures can be traced back to selecting a vendor or technology too early in the design process. The most successful approach for initial success and future flexibility is to follow a classic and rigorous "systems engineering" approach, keeping the broad picture in mind.

Other key points to remember during implementation:

• A successful DTC distribution center implementation requires continuity among project team members from the initial requirements definition phase through implementation finalization.
• "Underneath the hood" of an implementation lies tremendous complexity.
• Ensure that all aspects are planned for and actively managed from traditional project management through training and start-up support.

Download a copy of the whitepaper What's So Special About Direct to Consumer Distribution Center Implementations?

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E-mail Myra Schwartz or call 919-855-5533.

About Tompkins Associates
Tompkins Associates designs and integrates global end-to-end solutions for companies that embrace supply chain excellence. For more than 30 years, Tompkins has evolved with the marketplace to become the leading provider of global supply chain services, distribution operations consulting, technology implementation, material handling integration, and benchmarking and best practices. The company is headquartered in Raleigh, NC. For more information, visit www.tompkinsinc.com.

About Tech Conveyor, Inc.
For over 25 years, Tech Conveyor, Inc. has provided innovative turn-key material handling solutions consisting of sortation systems, parcel manifesting systems, in-motion weighing systems, control and the re-control of existing sortation systems to the distribution industry. Tech Conveyor, Inc. is located in Phillipsburg, New Jersey. For more information call 1-908-454-1515 or visit www.techconveyor.com.