Here's the reader's digest version of the conversation:
Me: What does real-time inventory mean to you?
Michael: Our warehouse and web site are now working from the same database. As we receive new inventory from our suppliers it is counted and immediately keyed into the computer. As we ship orders inventory is automatically adjusted.
Me: I see your product pages now list the stock status of an item. How can I trust that this is accurate?
Michael: We have set a goal of 100% fill rates for all of our orders. We do not want to accept orders for items we don't have on our shelves in the warehouse. If we don't have an item on the shelf to fill your order you won't be able to add it to your shopping cart on our site. If you see the 'add to cart button' with an item that means we have it in stock AND available.
Me: Doesn't 'in stock' mean it's available?
Michael: Not necessarily for some stores. What happens if I have 10 pieces of Debbie Does Dallas on the shelf and I get orders for 20 of them in one afternoon? Our programmers wrote our inventory system so that we will only accept orders for 10 items. As orders are placed the inventory is allocated to each order.
Me: So it sounds to me like you won't have to worry about all of the problems you were having with issuing credits.
Michael: It will be extremely rare for us to have to issue a credit for an item not shipping with an order. In the unlikely event that this happens the credit-issuing process is now automatic when we confirm shipment of an order in our new system. This way we are issuing credits before an order leaves our warehouse.
Me: Did you notice that your announcement email said 'Memorial Day Sale?' It's Labor Day.
Michael: Oops.
Edited by - Drew Black on Aug 30 2001
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