PFSweb
Encyclopedia
PFSweb, Inc. is an international provider of integrated eCommerce and business process outsourcing solutions most well known as a leading business-to-business
(B2B) and direct-to-consumer (DTC) order fulfillment and call-service provider.
Services offered by PFSweb include:
The company was founded in 1994 in the Dallas suburb of Plano, Texas
, and moved to Renaissance Tower in Downtown Dallas
in 2011.
of computer and office automation supplies such as printer ribbons, toner cartridges, and computer disks. The new unit was initially created to perform order-processing, fulfillment
, and telemarketing
services for other companies, due to a growing demand for outsourcing in this area. Soon after its formation, PFSweb was chosen to perform telemarketing and distribution services for IBM
product lines throughout North America.
PFSweb soon began to take on additional clients, and Daisytek doubled the size of its own "superhub" warehouse/shipping center in Memphis, Tennessee
in part because of the unit's success.
division, PFSweb Europe, with 10 employees working at a call and fulfillment center in Maastricht, Netherlands, and also launched a new division to offer order fulfillment services to internet-based retailers. It was targeted toward both web-based and brick-and-mortar firms who were adding web order
ing capabilities and needed to quickly get systems and staff in place.
With Daisytek's business model
appearing dull in comparison to the internet-based fulfillment services offered by PFSweb, the parent firm decided to capitalize on the market frenzy for Internet stocks by selling shares of the firm on NASDAQ
.
In early December 1999 one-fifth of the company, now bearing the name PFSweb Inc., highlighted its e-commerce capabilities, was sold in an initial public offering
(IPO). Mark Layton, the 40-year-old CEO of Daisytek, who had recently published a book called “.coms or .bombs ... Strategies for Profit in e-Business”, took the titles of president, CEO, and chairman of PFSweb, while remaining the board chairman of Daisytek.
In late July 2000, PFSweb introduced the Entente Suite of software, which offered full e-commerce support from web site interface to back-office accounting functions, customizable to meet each customer's needs. PFSweb also added managed hosting and web site development services to its offerings. To accomplish the former, the firm established a secure data center.
and supplier inventory services to further support its clients. In June, PFSweb sign a five-year contract with the Smithsonian Institution's Business Ventures unit to provide fulfillment services for catalog and web orders. An alliance was also formed with eBay
that would allow PFSweb's clients to distribute their products via that firm's online auction site. The company was now working to cut costs after losing key clients as the .com bubble burst, and in the summer laid off 60 employees, paring its total staff to about 550.
In September 2003 PFSweb added a new package of services to help their customers handle product recalls and November saw a new contract signed with Shell Energy Services Company to support that firm's new web initiative, Shell HomeGenie, which would allow customers to monitor their homes and control some appliances remotely.
In August 2004 the company signed a lease on a 435000 square feet (40,412.8 m²) warehouse/shipping center in Southaven, Mississippi
, which was located near its Memphis superhub site. The firm had been in a dispute with Memphis officials since 2003, when former parent company Daisytek had gone bankrupt and tax breaks for the Memphis site that had been granted to that firm ended. When an appeal to re-acquire the tax breaks was denied, the firm had begun seeking a new location outside of Memphis.
announced that they have entered into a non-binding letter of intent
(LOI) signifying the merger of PFSweb and eCOST.com. Under the terms of the merge, PFSweb issued eCOST.com shareholders one PFSweb common share for each outstanding share of eCOST.com in a tax-free, share-for-share transaction. As a result, eCOST.com became a wholly owned subsidiary
of PFSweb. The merger was officially completed in February 2006.
In 2006 PFSweb named Michael Willoughby as the President
of the company and acquired several notable clients, including LEGO
, Roots Canada Ltd, and Katun Canada.
PFSweb, Inc. announced in April 2007 that it is expanding its customer care services operations with a new 6500 square feet (603.9 m²) customer call center in the Philippines
. The new facility, located in downtown Manila
, initially housed the customer service
department for eCOST.com, but on a case-by-case basis the services of this location was also offered to PFSweb clients.
to assist in targeting the e-commerce technology market - the purpose is for Demandware’s e-commerce platform to supplement PFSweb’s fulfillment
and customer care services. PFSweb integrated the technology with its existing services, allowing PFSweb to enter into the marketplace of End-to-End
(E2E) suppliers.
PFSweb announced in April 2009 a five-year agreement had been reached with Army & Air Force Exchange Service (AAFES) to provide a comprehensive global fulfillment solution that supports the All Services Exchange Catalog and Online Store.
On January 15th, 2010, it was announced that PFSweb and Procter and Gamble (P&G) had joined together to launch an online store. Named the “eStore”, this online shopping site will be owned and operated by PFSweb and will exclusively feature P&G products for sale to consumers in the United States
. The eStore is planned to launch in the spring of 2010, pending a pilot of the site with 5,000 consumers which is currently underway.
On April 7th, 2010, Carter's, Inc.
selected PFSweb to operate their innovative multi-brand web store along with their high-touch customer care services, fully branded order fulfillment and comprehensive financial transaction management for both the Carter’s and OshKosh B'Gosh
brands.
for $2.3 million. In addition, PC Mall has contracted with PFSweb to provide a variety of e-commerce services, including IT and customer care, to support PC Mall's newly acquired eCOST.com operations on a temporary basis. PFSweb announced on March 22, 2011 its partnership with luxury brand kate spade
new york using its End2End eCommerce offering. This eCommerce effort was unique for PFSweb due to the kate spade new york website featuring not only an eCommerce storefront but also a collaborative "play" section focused on content instead of products.
The company has also received several accolades, including a "Quality Supplier" award from Xerox, an ASPire award for "best management and operations practice", and a top 5 ranking in the Deloitte & Touche Technology Fast 500. PFSweb was also awarded the 2009 "Technology Supplier of the Year" award by Riverbed Technology
.
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
(B2B) and direct-to-consumer (DTC) order fulfillment and call-service provider.
Services offered by PFSweb include:
- processing and shippingShippingShipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
orders - billBill (payment)A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...
ing and customer care - managing inventoryInventoryInventory means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English...
- light assemblyManufacturingManufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
- creating and hosting websites (Interactive Marketing Services)
The company was founded in 1994 in the Dallas suburb of Plano, Texas
Plano, Texas
Plano is a city in the state of Texas, located mostly within Collin County. The city's population was 259,841 at the 2010 census, making it the ninth-largest city in Texas and the 71st most populous city in the United States. Plano is located within the metropolitan area commonly referred to as...
, and moved to Renaissance Tower in Downtown Dallas
Downtown Dallas
Downtown Dallas is the Central Business District in Dallas, Texas USA, located in the geographic center of the city. The area termed "Downtown" has traditionally been defined as bounded by the downtown freeway loop: bounded on the east by I-345 Downtown Dallas is the Central Business District...
in 2011.
1994-1998: Origin under Daisytek
PFSweb, Inc. was founded in 1994 as Priority Fulfillment Services, Inc. (PFS) by Texas-based Daisytek International Corporation, a leading wholesale distributorDistributor
A distributor is a device in the ignition system of an internal combustion engine that routes high voltage from the ignition coil to the spark plugs in the correct firing order. The first reliable battery operated ignition was developed by Dayton Engineering Laboratories Co. and introduced in the...
of computer and office automation supplies such as printer ribbons, toner cartridges, and computer disks. The new unit was initially created to perform order-processing, fulfillment
Order fulfillment
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer...
, and telemarketing
Telemarketing
Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
services for other companies, due to a growing demand for outsourcing in this area. Soon after its formation, PFSweb was chosen to perform telemarketing and distribution services for IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
product lines throughout North America.
PFSweb soon began to take on additional clients, and Daisytek doubled the size of its own "superhub" warehouse/shipping center in Memphis, Tennessee
Memphis, Tennessee
Memphis is a city in the southwestern corner of the U.S. state of Tennessee, and the county seat of Shelby County. The city is located on the 4th Chickasaw Bluff, south of the confluence of the Wolf and Mississippi rivers....
in part because of the unit's success.
1999-2001: European expansion and PFSweb emerges
In January 1999 the company formed a EuropeanEurope
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
division, PFSweb Europe, with 10 employees working at a call and fulfillment center in Maastricht, Netherlands, and also launched a new division to offer order fulfillment services to internet-based retailers. It was targeted toward both web-based and brick-and-mortar firms who were adding web order
Order (business)
In business or commerce, an order is a stated intention, either spoken or written, to engage in a commercial transaction for specific products or services. From a buyer's point of view it expresses the intention to buy and is called a purchase order. From a seller's point of view it expresses the...
ing capabilities and needed to quickly get systems and staff in place.
With Daisytek's business model
Business model
A business model describes the rationale of how an organization creates, delivers, and captures value...
appearing dull in comparison to the internet-based fulfillment services offered by PFSweb, the parent firm decided to capitalize on the market frenzy for Internet stocks by selling shares of the firm on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
.
In early December 1999 one-fifth of the company, now bearing the name PFSweb Inc., highlighted its e-commerce capabilities, was sold in an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
(IPO). Mark Layton, the 40-year-old CEO of Daisytek, who had recently published a book called “.coms or .bombs ... Strategies for Profit in e-Business”, took the titles of president, CEO, and chairman of PFSweb, while remaining the board chairman of Daisytek.
In late July 2000, PFSweb introduced the Entente Suite of software, which offered full e-commerce support from web site interface to back-office accounting functions, customizable to meet each customer's needs. PFSweb also added managed hosting and web site development services to its offerings. To accomplish the former, the firm established a secure data center.
2002-2004: Online expansion and company layoffs
In February 2002 PFSweb began offering customized manufacturingManufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
and supplier inventory services to further support its clients. In June, PFSweb sign a five-year contract with the Smithsonian Institution's Business Ventures unit to provide fulfillment services for catalog and web orders. An alliance was also formed with eBay
EBay
eBay Inc. is an American internet consumer-to-consumer corporation that manages eBay.com, an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide...
that would allow PFSweb's clients to distribute their products via that firm's online auction site. The company was now working to cut costs after losing key clients as the .com bubble burst, and in the summer laid off 60 employees, paring its total staff to about 550.
In September 2003 PFSweb added a new package of services to help their customers handle product recalls and November saw a new contract signed with Shell Energy Services Company to support that firm's new web initiative, Shell HomeGenie, which would allow customers to monitor their homes and control some appliances remotely.
In August 2004 the company signed a lease on a 435000 square feet (40,412.8 m²) warehouse/shipping center in Southaven, Mississippi
Southaven, Mississippi
-Households And Families:As of the census of 2000, there were 28,977 people, 11,007 households, and 8,134 families residing in the city. The population density was 857.9 people per square mile...
, which was located near its Memphis superhub site. The firm had been in a dispute with Memphis officials since 2003, when former parent company Daisytek had gone bankrupt and tax breaks for the Memphis site that had been granted to that firm ended. When an appeal to re-acquire the tax breaks was denied, the firm had begun seeking a new location outside of Memphis.
2005-2007: Adding eCOST.com and Asia expansion
In November 2005, PFSweb and eCOST.comECOST.com
eCost.com is an online retailer based in Torrance, California. Founded in 1999, the retailer sells a variety of products, such as electronics, jewelry, and household items....
announced that they have entered into a non-binding letter of intent
Letter of intent
A letter of intent is a document outlining an agreement between two or more parties before the agreement is finalized. The concept is similar to a heads of agreement...
(LOI) signifying the merger of PFSweb and eCOST.com. Under the terms of the merge, PFSweb issued eCOST.com shareholders one PFSweb common share for each outstanding share of eCOST.com in a tax-free, share-for-share transaction. As a result, eCOST.com became a wholly owned subsidiary
Subsidiary
A subsidiary company, subsidiary, or daughter company is a company that is completely or partly owned and wholly controlled by another company that owns more than half of the subsidiary's stock. The subsidiary can be a company, corporation, or limited liability company. In some cases it is a...
of PFSweb. The merger was officially completed in February 2006.
In 2006 PFSweb named Michael Willoughby as the President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...
of the company and acquired several notable clients, including LEGO
Lego
Lego is a line of construction toys manufactured by the Lego Group, a privately held company based in Billund, Denmark. The company's flagship product, Lego, consists of colorful interlocking plastic bricks and an accompanying array of gears, minifigures and various other parts...
, Roots Canada Ltd, and Katun Canada.
PFSweb, Inc. announced in April 2007 that it is expanding its customer care services operations with a new 6500 square feet (603.9 m²) customer call center in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
. The new facility, located in downtown Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
, initially housed the customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...
department for eCOST.com, but on a case-by-case basis the services of this location was also offered to PFSweb clients.
2008-2010: Partnerships and new clients
In early 2008 PFSweb formed a partnership with DemandwareDemandware
Demandware is a private eCommerce merchant based out of Boston, MA. Founded in 2004 by Stephan Schambach, Demandware develops eCommerce software technology for online retailers with branches in France and Germany. Known for their On-Demand Commerce platform, they are a customizable eCommerce...
to assist in targeting the e-commerce technology market - the purpose is for Demandware’s e-commerce platform to supplement PFSweb’s fulfillment
Order fulfillment
Order fulfillment is in the most general sense the complete process from point of sales inquiry to delivery of a product to the customer...
and customer care services. PFSweb integrated the technology with its existing services, allowing PFSweb to enter into the marketplace of End-to-End
End-to-end
End-to-end or End to End may refer to:*Land's End to John o'Groats, the journey from "End to End" across Great Britain*End-to-end auditable voting systems, a voting system*End-to-end principle, a principal design element of the Internet...
(E2E) suppliers.
PFSweb announced in April 2009 a five-year agreement had been reached with Army & Air Force Exchange Service (AAFES) to provide a comprehensive global fulfillment solution that supports the All Services Exchange Catalog and Online Store.
On January 15th, 2010, it was announced that PFSweb and Procter and Gamble (P&G) had joined together to launch an online store. Named the “eStore”, this online shopping site will be owned and operated by PFSweb and will exclusively feature P&G products for sale to consumers in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. The eStore is planned to launch in the spring of 2010, pending a pilot of the site with 5,000 consumers which is currently underway.
On April 7th, 2010, Carter's, Inc.
Carter's, Inc.
Carter's, Inc. , also known as the William Carter Company, is a major American manufacturer of children's apparel. It was founded in 1865 by William Carter. Previously, the company also made underwear for adults...
selected PFSweb to operate their innovative multi-brand web store along with their high-touch customer care services, fully branded order fulfillment and comprehensive financial transaction management for both the Carter’s and OshKosh B'Gosh
OshKosh B'Gosh
OshKosh B'Gosh is a children's apparel company founded in Oshkosh, Wisconsin in 1895. It is currently a subsidiary of Carter's.Originally a small-town manufacturer of adult work clothing, it has become best known for its children's clothing, especially bib overalls...
brands.
2011: Sale of eCOST.com and moving forward
On February 22, 2011 it was announced that PFSweb had completed the sale of certain assets of eCOST.com to a new subsidiary of PC Mall, Inc.PC Mall, Inc.
PC Mall, Inc. is a value-added direct marketing company that offers computer and electronic products, services, and solutions to individual consumers, small and medium businesses, large enterprises, as well as for government and educational institutions...
for $2.3 million. In addition, PC Mall has contracted with PFSweb to provide a variety of e-commerce services, including IT and customer care, to support PC Mall's newly acquired eCOST.com operations on a temporary basis. PFSweb announced on March 22, 2011 its partnership with luxury brand kate spade
Kate Spade
Kate Brosnahan Spade is the co-founder and namesake of the designer brand, Kate Spade New York .- Early life and beginnings :...
new york using its End2End eCommerce offering. This eCommerce effort was unique for PFSweb due to the kate spade new york website featuring not only an eCommerce storefront but also a collaborative "play" section focused on content instead of products.
Culture
PFSweb has partnered with the several charities in the past, including the United Way. During the holiday season, PFSweb employees volunteer within their communities on behalf of the United Way.The company has also received several accolades, including a "Quality Supplier" award from Xerox, an ASPire award for "best management and operations practice", and a top 5 ranking in the Deloitte & Touche Technology Fast 500. PFSweb was also awarded the 2009 "Technology Supplier of the Year" award by Riverbed Technology
Riverbed Technology
Riverbed Technology is a technology company that specializes in improving the performance of networks and networked applications. It was founded May 23, 2002 by Jerry Kennelly and Steve McCanne in San Francisco, California where its world headquarters remains...
.
Clients
Clients of PFSweb include:- Ashley Stewart
- Carter's, Inc.Carter's, Inc.Carter's, Inc. , also known as the William Carter Company, is a major American manufacturer of children's apparel. It was founded in 1865 by William Carter. Previously, the company also made underwear for adults...
- Hawker BeechcraftHawker BeechcraftHawker Beechcraft Corporation is an aerospace manufacturing company that builds the Beechcraft and Hawker business jet lines of aircraft....
- Home Depot
- InfoPrint Solutions Company (IBMIBMInternational Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
) - kate spadeKate SpadeKate Brosnahan Spade is the co-founder and namesake of the designer brand, Kate Spade New York .- Early life and beginnings :...
new york - LEGOLegoLego is a line of construction toys manufactured by the Lego Group, a privately held company based in Billund, Denmark. The company's flagship product, Lego, consists of colorful interlocking plastic bricks and an accompanying array of gears, minifigures and various other parts...
- Liz Claiborne Inc. (Lucky Brand JeansLucky Brand JeansLucky Brand Jeans is a designer denim company founded in Vernon, California, United States in 1990 by Gene Montesano and Barry Perlman. Lucky Brand is a subsidiary of the Liz Claiborne fashion company. Lucky also produces sportswear, outerwear, T-shirts and active wear. Lucky Brand products are...
) - P&G
- Riverbed TechnologyRiverbed TechnologyRiverbed Technology is a technology company that specializes in improving the performance of networks and networked applications. It was founded May 23, 2002 by Jerry Kennelly and Steve McCanne in San Francisco, California where its world headquarters remains...
- Roots Canada Ltd.Roots Canada Ltd.Roots Canada Ltd. is a Canadian clothing and lifestyle products retailer. The retail stores sell Roots' own brand of products in Canada, the United States and Asia...
- SephoraSephoraSephora is a chain of cosmetics stores founded in France in 1970 and acquired by Paris-based conglomerate LVMH in 1997. The Sephora chain includes more than 750 stores in 17 countries...
- Sunglass Hut
- Tractor Supply CompanyTractor Supply CompanyTractor Supply Company is a large retail chain of stores that offers a number of products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care. It is a leading U.S. retailer in its market.Founded as a mail order tractor parts business in 1938, the...
- VolcomVolcomVolcom, Inc. is a designer, marketer and distributor of young men's and young women's clothing, footwear, accessories and related products sold under the Volcom brand name. Volcom is headquartered in Costa Mesa, California, United States...