What are the biggest mistakes online retailers are making in the area of lead-time optimization?
Green: I see problems in the area of lead-time optimization but not necessarily mistakes, except for not implementing a solution that does a good job of lead-time optimization. Lead-time optimization is particularly critical to e-tailers because typically they don’t have the ability to get mark downs in front of consumers as efficiently as a brick-and-mortar retailer does. If a consumer is walking into Sears, they can see sale signs on the racks. It’s much more difficult to find sale items in an online environment. So lead-time optimization and mark down optimization work hand in hand, with lead-time optimization being the most important for an e-tailer. These are classic statements from a retailing perspective that are still true.
