QVC is the worldÆs leading television-based retailer, with 77 million viewers a day and $3.5 billion in annual sales; the company doubles its size every 5 years (Maloney). How does QVC achieve these staggering numbers? It does it through a combination of marketing strategy and supply chain management strategies that make an astounding number of products available, make it quick and easy to buy, and get the products to the customers rapidly.
QVCÆs marketing strategy includes both TV programming and an Internet site. The TV programs only show a minute fraction of what QVC has to offer; the Internet contains many more products. With a friendly atmosphere that makes the customer feel like part of the QVC ôfamily,ö customers feel comfortable buying. Returns are simple, prices are low, and there is usually extra value included with any product. For example, a product that costs $24.99 at a local Wal-Mart may cost the same from QVC, but extra components are included. Integrated call centers can take thousands of calls simultaneously, making it easy for QVC to sell a huge amount of product in minutes.
State-of-the-art supply chain management is QVCÆs other success ingredient. Instead of relying on old-style warehouses full of stock, QVC has modern, largely automated warehouses and a good warehouse management system. In addition, a large proportion of the items it sells are not stocked at all; the inventory is in a virtual warehouse. To facilitate supply chain management, QVC uses creative shipping techniques such as cross-docking and drop-shipping. Special high-tech distribution centers are primed and waiting for orders, and all the parts of the supply chain are integrated seamlessly.
Maloney, David. ôLights, camera, customer satisfaction.ö Modern Materials Handling. May 1, 2001. http://www.mmh.com/article/CA73703.html
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