PFSweb

PFSweb, Inc.

Type	Public
Traded as	NASDAQ: PFSW
Industry	eCommerce Outsourcing Fulfillment Logistics
Founded	1994
Headquarters	Allen, Texas, United States
Number of locations	7 (United States, Canada, Belgium, Philippines)
Area served	Worldwide (North America, Europe, Asia, South America, Africa)
Key people	Michael Willoughby (CEO) Thomas J. Madden (CFO) Dave Reese (SVP of Solutions and International) Cindy Almond (EVP of Client Services)
Employees	1,500
Website	PFSweb.com

PFSweb, Inc. (Priority Fulfillment Services) is an international provider of eCommerce solutions^[1] most well known as a leading business-to-business (B2B) and direct-to-consumer (DTC) order fulfillment and customer service provider.

Services offered by PFSweb include:

• processing and shipping orders
• billing and customer care
• managing inventory
• light assembly
• eCommerce site development
• Interactive Marketing Services (Photography studio, analytics, SEO/SEM, etc.)^[2]

The company was founded in 1994 in the Dallas suburb of Plano, Texas. PFSweb's corporate headquarters were relocated to Allen, Texas in March 2012 with call center operations moved to downtown Dallas, Texas.

History

PFSweb Office in Canada

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 distributor 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.^[3]

1999-2001: European expansion and PFSweb emerges

In January 1999 the company formed a European 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 ordering capabilities and needed to quickly get systems and staff in place.

In Mid-1999, the parent firm Daisytek began selling shares of the firm on NASDAQ, capitalizing on the market frenzy for Internet stocks

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.^[4]

2002-2004: Online expansion and company layoffs

In February 2002 PFSweb began offering customized manufacturing 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 June, 2004, PFSweb, Texas, and Raytheon Aircraft Company jointly announced that PFSweb would perform fulfillment services at the Raytheon Aircraft Parts Inventory & Distribution (RAPID) facility.^[5]

In August 2004 the company signed a lease on a 435,000-square-foot (40,400 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.^[6]

2005-2007: Adding eCOST.com and Asia expansion

In June, 2005, PFSweb launched its dynamic new corporate website located at http://www.pfsweb.com/.The website reflected the company's position as a leading business process outsourcing (BPO) provider.^[7]

In November 2005, PFSweb and eCOST.com 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.^[8]

In 2006 PFSweb named Michael Willoughby as the President of the company^[9] and acquired several notable clients, including LEGO, Roots Canada Ltd, and Katun Canada.^[10]

PFSweb, Inc. announced in April 2007 that it is expanding its customer care services operations with a new 6,500-square-foot (600 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.^[11]

2008-2010: Partnerships and new clients

In early 2008 PFSweb formed a partnership with Demandware 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 with PFSweb's End2End eCommerce® solution.^[12]

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.^[13]

On January 15, 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.^[14]

On April 7, 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.^[15]

2011-Present: Sale of eCOST.com and the launch of iCommerce

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. 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.^[16] 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.^[17] PFSweb also announced on September 15, 2011 its global relationship with the Clarins Group^[18] and on January 4, 2012 an agreement with L'Oréal USA to launch and manage eCommerce sites for a portfolio of brands including Kiehl's, Lancôme, Yves Saint Laurent Beauté, and Giorgi Armani Beauty.^[19] In March 2012 Gerber Childrenswear announced their updated eCommerce website using PFSweb's End2End eCommerce solution^[20] and in April 2012 PFSweb announced an agreement with Elizabeth Arden.^[21]

PFSweb announced more clients in 2012 including Amer Sports Group and its Suunto brand,^[22] W. L. Gore and Associates and its BIKE WEAR and RUNNING WEAR brands,^[23] and Pandora A/S.^[24] The company also received another supplier of the year award from Riverbed^[25] and launched its new iCommerce solution through a partnership with Shopatron to create an omni-channel commerce solution.^[26] At the end of 2012 it was announced PFSweb was selected to launch and support eCommerce solutions for Kraft Foods brands Gevalia and Tassimo.^[27]

In February 2013 PFSweb acquired its first iCommerce client in BCBGMAXAZRIAGROUP^[28] and also launched a branded eCommerce site for spirits and alcoholic beverage producer Diageo.^[29] The following month PFSweb announced a leadership change as Mike Willougby replaced Mark Layton as CEO of the company. One of Willoughby's first actions as CEO was the forming of a relationship with Japanese company transcosmos, who also made a $14.7 million investment in PFSweb.^[30] New clients so far in 2013 include TJX Companies, L'Oréal brands em michelle phan^[31] and Clarisonic,^[32] and the United States Mint.^[33]

Culture

PFSweb has partnered with the several charities in the past, including the United Way and the Children’s Advocacy Center of Collin County. During the holiday season, PFSweb employees volunteer within their communities on behalf of the United Way and have pledged more than $60,000 to support the mission of United Way of Metropolitan Dallas.^[34] PFSweb is also an active participant in the Richardson Corporate Challenge, an Olympic style competition involving up to 22 athletic and non-athletic events. In 2013, PFSweb launched the SPARK program to assist people in need in the Dallas-Fort Worth area.

The company has also received several accolades, including a "Quality Supplier" award from Xerox,^[35] an ASPire award for "best management and operations practice",^[36] and a top 5 ranking in the Deloitte & Touche Technology Fast 500.^[37] PFSweb was also awarded the 2009 "Technology Supplier of the Year" award by Riverbed Technology.^[38]

After receiving a $300,000 grant from the city of Dallas in 2011, PFSweb relocated their call center operation from Plano, Texas to Dallas, Texas, residing in the 56-story Renaissance Tower directly in Downtown Dallas.^[39] PFSweb also relocated its corporate headquarters in March 2012 from Plano, Texas to Allen, Texas.^[40]

Clients

Clients of PFSweb include:

• BCBGMAXAZRIAGROUP ^[41]
• Carter's, Inc. ^[42]
• Clarins Group ^[43]
• Clarisonic ^[44]
• Diageo ^[45]
• Elizabeth Arden, Incorporated ^[46]
• em michelle phan ^[47]
• Gerber Childrenswear ^[48]
• Giorgi Armani Beauty ^[49]
• GORE BIKE WEAR and GORE RUNNING WEAR (W. L. Gore and Associates) ^[50]
• Hawker Beechcraft ^[51]
• InfoPrint Solutions Company (IBM)
• Kiehl's ^[52]
• Kraft Foods ^[53]
• Lancôme ^[54]
• LEGO ^[55]
• P&G ^[56]
• Pandora A/S ^[57]
• Riverbed Technology ^[58]
• Roots Canada Ltd. ^[59]
• Sephora
• Sunglass Hut
• Suunto ^[60]
• TJX Companies
• T.J. Maxx
• United States Mint ^[61]
• Yves Saint Laurent Beauté ^[62]

References

External links

Wikimedia Commons has media related to PFSweb.

• PFSweb Official Website