Three key forces which are converging to create an explosion in consumer-direct business models are  technology forces which make it possible, market forces that make it viable and social forces to make it inevitable. In the current business environment, customers are highly demanding about aspects such as timeliness of delivery, convenience and lower fulfillment costs. As a result, all the stakeholders across supply chain must become highly responsive and efficient. Consumer direct fulfillment offers customers to select and configure products, get a real time price quote and receive assured delivery on committed date.

It is necessary that businesses which are striving for satisfying customers online should dynamically change their business model to make consumer-direct retailing and manufacturing attractive to the customer. Direct fulfillment provides opportunity to must re-evaluate complete fulfillment business model including important aspects such as promotions, merchandising, product selection, pricing, supplier relations, technical management, distribution, replacement and after sales service.

The current financial crisis has forced governments worldwide to consider emergency measures so to address avoid an economy sliding into recession. To tackle these challenge retailers should manage the high cost of carrying inventory by finding ways to control impact of inventory on operating costs. As a result, increasing number of suppliers adopting Supplier-Direct Fulfillment strategy to contain the high cost of inventory and reduce overall operating costs. It is also helpful in a situation where shortage of funding and higher interest rates. In Supplier-Direct Fulfillment, orders are sent directly to suppliers, manufacturers and distributors. They fulfill the order and ship merchandise directly to customers. In Supplier-Direct Fulfillment, retailer never holds any inventory on the balance sheet while purchases it only after receiving payment from the customer.

Increasing number of manufacturers and businesses are adopting direct fulfillment to effectively serve their customer base. Upcoming Motorola DROID 3 would be available via Verizon direct fulfillment starting 7^th July 2011.

Customers of a company are satisfied when deliveries are made quickly and accurately. Customer satisfaction builds a company to a profitable position. Without customers, new and old, a company could not succeed. Warehousing and distribution make it possible to eliminate wasted time and unexpected problems through the streamlining of a company’s supply management. Technology is as important as the space that is used for storage. A company must know just exactly where their merchandise is located, the amount of merchandise that is there, when more of an item must be ordered and just exactly when a customer can receive the product or products they need. When a company looks to select a solution for warehousing and distribution, the following factors should greatly influence their final choice.

Can the provider provide processes that are paperless?

• Will the provider cause a reduction in errors and inefficiencies?
• Can the provider mange the inventory of merchandise from the point of order to the point of delivery?
• Will using this provider help the company to increase the loyalty and satisfaction of their customer base?

A professional choice in warehousing and distribution should be able to integrate the supply, shipping and payment systems accurately for a company. Companies should be able to see a rapid turnaround time with fulfillments that are precise. When the wrong company is chosen for warehousing and distribution, costs will exceed the budget of the company causing it to become rapidly unsuccessful.

Service providers should be able to control the supply management effectively. Efficiency will be increase, services will be enhanced and the company can gain control of their inventory properly. Companies will also need to choose a provider that is the right size for their current and immediate future needs. A company will need to add space only as they grow. When more space is available to a company than is needed, they will see a loss in profits by having to pay for unused storage services.

It is imperative to any company that communication be clear and open. A service provider should give accurate up to date status on inventory, notifications about low stock on items and other various reports to a company.