QVCÆs Global Supply Chain Management
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 2001). With its formula for high-quality products, soft-peddling show hosts, and superb customer service, QVC is the reigning king of shopping channels. Although QVCÆs customers are more familiar with its products and its friendly hosts, the supply chain management apparatus that supports the shopping process is the real superstar; without this system, QVC could not achieve the dazzling success it continues to enjoy in marketing its huge volume of products. The rapid fulfillment of mega numbers of orders, its state-of-the-art distribution network, and the management of the warehousing process are all essential behind-the-scenes keys to QVCÆs success.
There are several vital components to QVCÆs global supply chain management. One of these is the warehouse management system (WMS) that ensures ample stock of a product is available before it is presented on air. Advance ship notices alert the warehouse of the arrival of incoming stock at the facilityÆs 59 receiving doors. Palletized items are unloaded by walkie-rider trucks, and extenders reach into the semis to unload any unpalletized cartons, which are stacked onto pallets for storage. The WMS creates a bar code license plate that is then attached to each pallet and hand scanned to link it to the stock-keeping unit (SKU) it holds. Full pallets generally go into reserve storage and are taken by a walkie rider to pick-up and delivery stations at the end of the storage aisles. The pallets are then picked up by a turret truck that scans the bar code license and takes the pallet to a storage location designated by the WMS. When the pallet reaches the proper rack, the operator scans the location bar code to confirm proper putaway. Received product can also be cross...