The Case of E-Commerce

When a company sets out to revamp its e-commerce Web site, it can be because the design needs a boost, or the back-end processes that support the site are in need of an overhaul. Here we’ve found three cases in which the latter was true. These companies were operating at different levels of e-commerce, ranging from none at all to moderate sophistication. But in every case, they were able to improve efficiency and better serve a variety of markets by working with an Internet consulting firm and rethinking the way they did business on line.

The three companies—Caldrea, Tricam Industries, and Evergreen Industries—illustrate perfectly that there is no one approach to e-commerce that suits every organization. Some products are sold primarily through retail outlets. Some are sold directly, but are extremely high-touch. Some must compete in markets where nimbleness is key. So how can Internet sales serve them all? Take a look.

Caldrea: From Outsourcing to Insourcing
caldrea.com - mrsmeyers.com

Caldrea, a Minneapolis manufacturing company founded in 1999, has long been an enthusiastic Internet seller in both the business-to-business and business-to-consumer spaces. In 2003, it contracted with Digital River, Inc., in Eden Prairie to sell its premium earth-friendly home care products on line. Digital River built an e-commerce site for Caldrea, then handled all the order management, fraud prevention, online marketing, customer service, and product fulfillment.

But more recently, when it was time for a redesign, Caldrea’s executive team decided they wanted to do more than update the surface appearance of the site. In fact, they decided they’d prefer to insource fulfillment. And what’s more, they wanted to automate the shipping process in order to fulfill orders with lightning speed. So after a search, they engaged Bloomington-based InSite Group, a strategic technology planning firm.

It was important to set out the company’s goals for the site from the outset, says David Nassif, Caldrea’s finance and IT director. There were actually two sites involved: the one for Caldrea and the one for Mrs. Meyer’s, the company’s second brand. Both needed to be operated via tools that would allow non-IT employees to react to customer needs without involving programmers.

“As with any project involving vendor partnerships, we had to clearly define our specifications and expectations to ensure everyone was on the same page,” Nassif says. “This helped to create a workable plan, as well as a smooth execution and delivery.”