Update on WMS Project

The following email was sent to our employees by Chris Nielsen (our

CFO)

Thanks everyone for your patience!

 

Hello Zappos Family and loyal Zappos customers,

 You deserve an update on where we are with the WMS project and how things are going today.  The project officially went live last Monday, and despite everyone’s best efforts we have faced some challenges since then.

 Those challenges come in two forms: 

1)      Going through the backlog of customer orders that were built while we had the previous system offline and were transitioning to the new system.  Over the cutover weekend, we were accepting orders from Thursday through Monday but not able to process them until Sunday night.  During this time, we were doing the work necessary to change from the previous system to the new one.  That timeline meant that we needed to start quickly shipping orders with the new system.  Shipping began slower than we expected as we ran into some unanticipated mechanical, systems, process and training issues.

2)      Fixing pieces of functionality and processes that are not working as we expected them to.  As with any system transition, we are finding errors that need to be corrected, enhancements that need to be made and process changes required to maximize volume through the FC.

 The backlog challenge has been greater than fixing pieces of functionality.  Our KY team has been working incredibly hard (including extremely long hours with little or no sleep, herculean recruiting efforts to staff up, making drastic headcount realignment decisions and creatively working past every obstacle in their way) to make progress here, and we turned a corner over the weekend and Monday.  We will have over 500 temporary workers in the building this week to help us.  We are now at an outbound run rate where we are churning through the backlog.  If we continue this progress, the customer order backlog will be down to a manageable level by this weekend and cleared within days after that.

 Our tech teams are focused daily on making the changes necessary to make the system perform as we need it to and delivering efficiencies to the FC to help clear the backlog.  That process will continue indefinitely, and we are prioritizing the most important aspects for our customers and teams.

 We know that some customers have been inconvenienced as part of this transition.  Frankly, nothing disappoints us more than this.  We are addressing those individual customers and will be reassuring them that we will quickly be reverting to our previous high standards.  Our CLT team has been great at working with our customers to the best of their ability to address customer concerns.

 Over the last week, we have been inspired by your ability to Drive and Embrace Change.  Change is sometimes difficult and painful, and this transition has been both of those things at times.  Together we will work though this and come out the other side with better long-term capabilities to serve our customers as our business continues to grow. This is the biggest and most complex systems and operational transition (you might think of this as the equivalent of a heart transplant or changing the engines of a plane while in flight) in Zappos history.  Thank you for your part in making it happen!

 

Chris, Craig and Arun

Comments

469478066's picture
Sep 29, 2011 at 8:16 pm KerrieT74637 said:

When you set the bar so high in customer service, it's bound to bite you in the butt on occasion. I fess up to being one of the complainers. I placed two orders on Sunday and was so used to getting a notice akin to "you're so awesome that we're sending your order out right away and you'll get it tomorrow" that when that didn't happen, I suddenly felt much less special. Kind of pathetic when you think about it.

I want to commend your unflappable team of customer loyalty people (or whatever it is you call them). I not necessarily easy to impress, but these folks are very, very impressive.

Thanks to all for fixing this issue quickly and for explain exactly what happened. It is very much appreciated.

480150690's picture
Oct 3, 2011 at 3:20 pm chrism75516 said:

I work in the tech space and "change" is very near and dear to my heart, so I understand the complications that can arise when updating/upgrading systems. What I don't understand is why there is absolutely no way to track the items in my order that I spent my hard-earned money on. I placed the order on the 25th of September and still no word on the merchandise. The majority of the items I was planning on taking with me on a family vacation for which we will depart this coming Wednesday, Oct. 5th. Maybe the items will make it here and maybe they won't, but the overall buying experience won't change for me...it's a "black eye" for Zappos. It's too bad because I very much like the Web.next approach that the company has adopted for online shopping...even complete with a fairly impressive iPad application.

All the technology in the world is worthless if the goods aren't delivered as expected.

Chris

478769533's picture
Oct 3, 2011 at 10:07 pm Vivi said:

I hope this gets fixed soon, it's a bit annoying having to wait weeks for the items to get delivered. I contacted one of the live chat CS last week and he told me the updates was almost finished, I placed my order thinking you'd be done already. It does not look like to be the case. So it seems you're still undergoing maintenance with the website? Because it looks like the orders are still getting delayed. How much longer must we customers wait?

Please get this fixed soon so you won't be piled up with so many undelivered packages. I love Zappos and want to continue shopping here, but if the packages continue getting delayed, then I might have to shop elsewhere. Luckily my order isn't super important, but when I shop here I expect the package to be shipped in a timely matter. I understand you want to make the site better for everyone, but it shouldn't keep your impatient customers from not getting their packages by now. Especially those customers who are in need of the item right away. Hurry up and finish updating your site, please. Even as a VIP such as myself would hate to wait for weeks when you promise that the package will get delivered the next day. Hurry up!

473071683's picture
Oct 4, 2011 at 5:29 pm SherryM75559 said:

In addition to the comments already posted I would like to add my disappointment in the handling of this problem. Yes, the customer service department is awesome. That said, I shouldn't have had to call to find out there was a problem when I didn't get a shipping notification. Tony, as the CEO, you should have made a public apology for the inconvenience to your customers. There should be something telling us upfront that our orders would be delayed and why. For those of us needing something quickly, we could have placed the orders elsewhere and come back when the problem is fixed. If this had been my first purchase, it would have been my last.

39451063's picture
Oct 5, 2011 at 6:58 pm ValerieD76000 said:

From: valerxxxxx@msn.com To: cs@6pm.com Subject: RE: VERY URGENT - RE: Returns & refunds Date: Mon, 3 Oct 2011 18:00:57 -0700

I would like to escalate this issue to a Supervisor. I feel that this is very bad Customer Service. Since it is your company that made these errors you should be tryng to rectify the problem.

1. I wanted these shoes for an upcoming cruise. Having ordered from your site before several times, I knew that they would come in by the alloted time. 2. After several days of my order showing in a "received" status I sent the first inquiry asking what the problem was with my order. I get a automated response saying that you have been having problems with shipping and this has resulted in a large amount of customer inquiries and it would take 5 days to respond. Why wasn't the problem with shipping put as an announcement on the site when placing the order. 3. I sent another inquiry stating that I needed the order by 10/11 and that I would be willing to pay for the express shipping. 4. Still after no response, and my order still showing in a "received" status (now it is several days later), I sent an email stating to cancel the order since I would not get it in time. 5. The next day, I have an email stating that my order has been shipped. 6. Today I have an email stating that my order has been cancelled. 7. Since all my inquiries were referenced to the same order #, the person who cancelled the order should have seen the previous inquiries about this order. If your system does not work this way, then you need to update it fast. 8. If there was any question at all, you had my telephone number to contact me, even though you have not provided a customer service contact phone number. 9. The way to rectify this issue, is to reprocess my order at the initial price I paid, and send it out express, at YOUR cost, so that I have it by 10/11/2011. If you are unable to process my order for me, then you should provide me with a code for express delivery so I can re-order it myself a.s.a.p. 10. If I need to address my concerns with another department, please forward that information to me.

That is what Customer Service is. If that is not what your Company stands by, believe me, I will never order from you again. And though I am sure you do not care about my "little" business, I will do everything I can to make sure that future customers are aware of how much you value your customer!

Here is what I found on problems other customers have had. I felt like some of the customers, the first few times I ordered. But I am sure they have not placed an order during this fiasco. I also found some disgruntled customers on your Facebook page. http://www.epinions.com/pr-Online_Stores_Services-6pm

Just in case you need my contact numbers again xor (xxxxxxxxx

Valerie

> CC: > Subject: VERY URGENT - RE: Returns & refunds > Date: Mon, 3 Oct 2011 15:05:19 -0700 > To: valerixxxxx@msn.com > From: cs@6pm.com > > > Hello Valerie, > > Thank you for contacting 6pm.com Customer Service. My name is Candace and I'll be happy to assist you today! > > I sincerely apologize for any confusion regarding your order number 112946927. > > Regretfully, UPS has been contacted and an intercept was already placed on your package to return this package to our warehouse for cancellation of this order. We have already issued a full refund in the amount of $27.65 to the Visa card used on your original order. Please allow your bank 2-10 business days to process this credit and for it to show on your account. > > Unfortunately, once an intercept has been processed with UPS, we are unable to cancel that and have the package delivered to you. > > If you are still wanting to the rsvp Ellie SKU 7626892 Dark Silver 11 M, you can purchase the shoes, if they are still available on the site in your size and color. > > If there is anything more we can do for you or if we could improve your experience, please do not hesitate to let us know. We are available to assist you by phone 7 days a week, 6:00am - 8:00 p.m. PST, at 1-888-676-2660. You can contact us via email any time at cs@6pm.com. > > For the latest updates and special offers, make sure to sign up for our email newsletter! > > http://www.6pm.com/ > > Special program exclusively for TWITTER followers. Follow 6pm.com: > > http://twitter.com/6pm_com > > Thank you! > Candace S > > 6pm.com Customer Service > website: http://www.6pm.com > Twitter: http://twitter.com/6pm_com > e-mail: cs@6pm.com > phone: 1-888-676-2660 > 7 days a week > 6:00 a.m. - 8:00 p.m. PST > > > On Mon, 3 Oct 2011 14:34:49 -0700, Valerie xxxx wrote: > > > > I can't believe the service and number of e-mails back and forth on this one order. Can't you see the e-mails that have been sent before responding to each one individually. > > > > I had explained in the last e-mail that I needed this order by 10/11 as I was going on vacation. Fortunately, I received a previous e-mail that the order had been shipped and I would receive it. However, this was after I had sent the e-mail requesting that you cancel the order. > > > > I went to the e-mail that had been sent with the tracking information and see that my package has arrived here in Concord but it has been intercepted. I would like this package delivered. As I indicated before, I sent that cancel request when it appeared that I would not get the order in time and before I had received your notification that it had been shipped. > > > > Please process the order again and contact UPS to deliver a.s.a.p. Thank you!!! > > > > > > Valerie

> > > > > > > > > CC: > > > Subject: Returns & refunds > > > Date: Mon, 3 Oct 2011 14:19:19 -0700 > > > To: valerxxxxx.com > > > From: cs@6pm.com > > > > > > > > > Hello Valerie, > > > > > > Thank you for contacting 6pm.com. My name is Lacie and it's my pleasure to assist you today! > > > > > > I'm very sorry for any previous mis-communications regarding your order and any confusion we may have caused. It's absolutely not our intention at all to mislead you or ignore your concerns! We're definitely sensitive to your situation and will continue to strive to assist you as best as we can with the information we have at hand. > > > > > > If we previously advised your order # 112946927 had shipped, it was because the information we had at the time was that orders still in "Received" status a few days after they were placed had already been shipped out, but their statuses simply hadn't changed yet due to our warehouse system updates. Unfortunately, we recently received word from our warehouse team that processing times were a bit more delayed by our warehouse management system updates than previously thought, so some orders we sincerely believed had already shipped out before actually hadn't. > > > > > > Per your request, I attempted to cancel this order. Thankfully, I received a system message confirming that my attempt was successful! I have also credited back your credit card in the amount of $27.65. Please note that depending on your credit card company, it may take an additional 2-10 business days after your credit is applied for it to post to your account. > > > > > > Once again, we're very sorry for any previous mis-communications regarding the processing and shipping of your order. Please know that we are here for you to help in any way we can if you should need anything else. In the meantime, all of our teams will be working furiously to ensure we're back up to and above our expected level of service as soon as possible. > > > > > > If there is anything more we can do for you, Valerie; or if we could improve your experience, please do not hesitate to let us know. Currently, we are most easily accessible by email at cs@6pm.com. > > > > > > Regards, > > > Lacie > > > > > > 6pm.com Customer Service > > > website: http://www.6pm.com > > > e-mail: cs@6pm.com > > > 6:00am � 8:00pm PST, 7 days a week > > > > > > On Thu, 29 Sep 2011 16:29:31 -0700 (PDT), "Valerie xxxxx" wrote: > > > > Submitted on Thursday, September 29, 2011 - 16:29 > > > > Submitted by anonymous user: [192.168.66.20] > > > > Submitted values are: > > > > > > > > --Contact Us-- > > > > Your Name: Valerie xxxxy > > > > Email Address: valeriexxxxx.com > > > > Subject: Returns & refunds > > > > Order Number: 112946927 > > > > Comments: > > > > I have sent two e-mails, via this system, regarding an order that > > > > I placed earlier in the week. I have made several orders from > > > > your site in the past and my order is always shipped out the same > > > > date. My order is still showing as "received" some 4 days later. > > > > I am leaving on a cruise on 10/11/2011 and needed these shoes for > > > > my formal night on the ship. I understand that it took another > > > > customer 11 days before her item even showed "shipped". I want > > > > to CANCEL this order and refund made to my card immediately. I > > > > only needed these shoes for this trip. Please do not ship this > > > > out to me. If you do, I expect that you will absorb the return > > > > shipping fees. If your company was experiencing problems with > > > > their shipping, that information should have been disclosed > > > > during the order process. If so, I would not have even ordered > > > > them. AGAIN. Please cancel this order and DO NOT Ship it out. Valerie D

39451063's picture
Oct 6, 2011 at 1:20 am ValerieD76000 said:

I would like to thank Zappos and 6pm.com for addressing my issue. It is unfortunate that I had to post on this blog to get this rectified. But Justin, the Supervisor that called me this afternoon, was very apologetic and turned this bad situation into a very pleasant one. I have had problems with other companies in the past and have never had my concern addressed in the way that Justin handled it. In doing so, I will continue to do business with both Zappos and 6pm. However, I would hope that in the future the Companies would take proactive measures to ensure that something like this never happens again. And that if by chance you experience problems with you system again, the last thing that you would do is suspend communication with your customers.

Thank you!

Valerie

472460002's picture
Oct 7, 2011 at 6:12 pm AmyH76480 said:

I, too, have been extremely disappointed in Zappos. I used to love Zappos more than any other company and would sing its praises to whomever would listen, but now feel saddened at the lack of customer support and poor communication. I have lost trust in a company that I fully trusted and honestly don't know if I trust them to handle future orders like they used to.

I have been waiting on a refund for a large order for over 96 hours. The order was received by Zappos on 10/3 and my email states the return should be processed in 48 hours. After talking to several reps about this, I have been told that I am wrong and that it is 72 hours. Well, then you need to fix the emails that you send to your customers because they all say 48 hours. Nevertheless, it is now over 96 hours and still no confirmation of return or refund. I keep being told to wait over the weekend which would make it a week after Zappos received the items. Now I have to keep calling back because I don't trust that this will be handled properly. And as I mentioned, this is a large amount that I really need credited back to my credit card promptly.

I no longer feel like a valued customer at all and wonder why my VIP status means so little. Thumbs way down, Zappos.

472460002's picture
Oct 8, 2011 at 12:14 am AmyH76480 said:

UPDATE: Thank you Andreas @ Zappos for calling me today to get my issue resolved. I really appreciate it, though obviously I wish I hadn't had to post on your blog to get the level of service I had been used to. But like ValerieD said in her comments above, the fact that I got such a fast, personal response when most companies seem to ignore web comments is amazing. Thank you Zappos--I'm glad you haven't forgotten why we love you so much. :-)

480150690's picture
Oct 12, 2011 at 7:40 pm chrism75516 said:

This is an addendum to my earlier post, and I want to mention straight away that the folks at Zappos did certainly rectify my situation and I did receive what I ordered before I left on vacation. The customer service folks contacted me (after my post) to discuss the issue and arrange for an expedited delivery. To my delight, the merchandise did show up on time as promised.

I will echo the comments of other bloggers, in that, communication with the customer has to be more proactive in these types of instances. Like others on this board, had I not checked the status of my order on the Zappos site and called the Customer Service number myself, I would have been clueless as to the status of my order.

I will continue to shop at Zappos. Hopefully, if any similar issues arise in the future, I will be one of the first to know about it from Customer Service instead of having to track it down myself.

Chris

465605098's picture
Oct 12, 2011 at 8:06 pm JohnW77470 said:

FOLLOW COMMENTS MADE AS FEEDBACK TO GOOGLE

I bot the product from a difference source. Now you are throwing ads at me from Zappo. How irritating as Zappo is way too expensive. I had checked Zappo before I made my purchase. Your ads are always after I have made the purchase and because of your charges to the vendor, they are always too expensive. I know that if you add an ad to my web site, it will be for a vendor that is more expensive. Your ads help me weed out the expensive vendors.

I hate your intrusiveness, but at least it helps weed out the expensive vendors.

480854597's picture
Oct 13, 2011 at 12:18 am HaroldW77518 said:

OK I would have sent an email but I thought this would be just as easy. ATTN: Sales You folks need to sell the Havan Joe / Panama Jack brand Mens boots. This boot made in spain is truely the best all around simple ruged and comfortable boot for men in the world. I use to buy a pair every year or so from various stores and online.

Over the last few years you can not find this boot in the United States. I see it online in the UK but no one who will ship to the US. Please bring on this line. I will be good for one pair a year but as I said its the best boot in the world so I am sure you will sell a few more pairs.

Being the best online shoe store in the world I think you have a great oppertunity to sell me shoe's for life if you can sell me a pair of these boots and ship them to me here in Kansas. I am placing a good faith order with your company tonight for some skechers and I hope it is not the first and last pair of shoes I buy from you. Thank You Harold Welch JR

38824928's picture
Oct 13, 2011 at 7:11 pm krystynel72612 said:

Well, after reading all the bad comments...I don't feel so bad. I have one additional thing to say..........IF IT AINT BROKE...DON'T FIX IT!!!!!!!

474826695's picture
Oct 26, 2011 at 3:12 am StephenH73691 said:

Ever since my friend introduced me to Zappos, I have bought most of my shoes from your website.

You have stylish shoes for all purposes, from business professional to excellent athletic shoes and always priced the lowest around. Your customer service amazed me when I called regarding an error I made when ordering my shoes, and the person whom I was on the phone with called the truck back, which had already left the factory, and put the correct pair of shoes on the truck to make sure I got them on time. I was speechless. On top of the low prices, Zappos’s shipping is the best I have ever seen, especially if you are a VIP (which I highly recommend), because then you do not have to pay for shipping and handling.

I will be visiting your website again shortly for a new upgrade on my work shoes. Keep up the Good Job!

477885599's picture
Oct 28, 2011 at 2:47 pm BettyB81420 said:

I have loved Zappos as a customer but your employees are a disappointment in the merchandising department. I run a small, well funded handbag company with unique products to offer the consumer and yet NO ONE WILL RETURN MY E MAILS OR CALLS! I have reached out approx. 20 times. I even have a ticket #: 867650. What a shame that a company that prides itself on innovation; is unwilling to look at new products! I can't even get a polite no thank you! You have lost me as a customer and as our business grows; and it will; consumers will not be purchasing our brand from Zappos. So, all the press about the culture at Zappos does not extend to potential partners?

475499498's picture
Nov 11, 2011 at 7:57 am JamesJ85509 said:

I want to make clear to anyone reading my blog. This is just my suggestions. Zappos is a great store.

I think Zappos is a great store but the sales sucks. The best customer service I have ever experience. Packages arrive on time 99.99999%. I believe that Zappos can becomes one of the best online stores if they treat the VIP's with a better exchange policy depending on the customers record with Zappos. I was returning two pair of shoes but they would only send me one pair back even having tracking numbers from UPS that two packages was enroute to them. I am fully aware that Zappos would have not known what was in the packages but because of our relationship, Zappos's is aware of my spending habits and my returning items that just wasn't right for me. Never not sent back any item that I wasn't in factory condition(meaning never worn or used).The other shoes I wanted they only had two pair left. By the timw my return items arrive to Zappos's warehouse and be scanned I would miss out on possibly an item that I wamt would be sold out, yet I suppose to be a VIP customer. I don't get that.

I feel this would have made our relationship more personal. It gave me the impression that I was untrust worthy. I have never did anything outside of their policies. With that been said and knowing my record with Zappos's, I think Zappos should have trusted me and sent me the second pair of shoes but instead I had to wait until both of the shoes reached the warehouse.

Another suggestion is the sales that Zappos sucks. Not enough reductions. The prices are usually five or $10 off which to me sucks. A store like Neiman & Marcus will have a sale with 65% off regular prices. I could be wrong but never have I ever seen or read about a good sale at Zappos. The only time a person my find a decent sale is when there is only one or two items left or when they have only a couple of sizes which we know it won't be in my size.

Last but not I feel Zappos should have a better Couture Line for women and men.

465496250's picture
Nov 30, 2011 at 8:08 pm RoseannG92277 said:

Dear Tony H, CEO of Zappos and 6PM:

For the past two weeks I have been banging my head against the wall trying to get someone to help me with the sign up affiliate program. I'm 55 years old not very experienced in on line procedures. I have a very successful coupon blog and for years I have been recommending your site and by doing so selling shoes for your company and would really like to take advantage of the affiliate program. However being internet challenged I need help to walk me through the process. I have called, emailed and still cannot get anyone to help me. Zappos customer service doesn't want to help me, 6PM customer service can't help me due to the horrible language barrier so I'm at a loss where to go next. Can you help me?

Roseann Giannone CouponCoach@verizon.net

479528612's picture
Dec 2, 2011 at 6:22 am marioa92803 said:

AN EARNED AND WELL DESERVED "KUDOS" TO KEVIN 12/1/11 at 9: PM Hello Mr. CEO and COO, It took me about .15 minutes to find this alternative place to commend your associate Kevin (no last name asked, but the record should pin point him) for his extraordinary, good old fashion, customer service skills and manners. I'm always willing to go the extra mile to commend anyone who earns the grade, BUT it is truly difficult to find such person now days, for seems customer service values have gone down the drain. Most of us just take the "next customer" for granted, particularly past 9 PM when most customer service reps. wish customers were already sleeping, not shopping for shoes or asking "where is my returns credit?". Tonight your associate Kevin earned that A+ grade with the extraordinary service he extended me. He made me feel respected and valued in all respects. His attitude and disposition to nip-it-in-the-bud and take action to address and resolve my issue with a smile on his face (didn't see it or heard it, but transpired) made me feel rewarded for choosing to shop with Zappos. Nothing happens until somebody takes personal responsibility and makes it happen. Kevin did. Kudos to Kevin. THANK YOU! Mario Arreola

481740706's picture
Dec 3, 2011 at 4:18 pm DarleneB93155 said:

I want to say how pleased I am with my recent buying experience with you guys. Fast service, great variety of products, and your copywriters are great. The humor in the writing actually made me smile while reading different things. Very clever. And your free returns shipping is fantastic. I was not pleased with my purchase so I printed my return label and sent back. It was so EASY! I love your site and will use it again and again. Thank you for all you do.

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