Applying the Thoery of Constraints to an eCommerce Operation

Theory of Constraints, for ecommerce companies

Theory of Constraint is a “Lean Manufacturing” methodology that has been around since the early 80’s, however it is wrongfully considered to be relevant to manufacturing organizations only. David Sasson, CEO of overstockArt.com who discovered TOC about five years ago has adopted the methodologies that are discussed in TOC to an eCommerce operation.

The result has been tremendous, an increase in throughput and a profitable organization.

Theory of Constraints, for ecommerce companiesDavid, started writing about how he has adopted the Theory of Constraint to an eCommerce organization on Practical eCommerce, a widely popular online journal for eCommerce professionals.

The initial response has been tremendous, it seems that eCommerce managers and entrepreneurs are thirsty for methodologies to help them capitalize on the opportunities laid in front of them. David illustrates in a very simple and clear manner how organizations can revolutionize their internal processes and become profitable by doing more with what they already have, without any additional investments or cost cutting.

If you feel like your eCommerce operation can deliver more with what you have (you are probably right) then you should consider applying TOC methodologies, if you have questions, then don’t hesitate to ask. This subject has become a passion for us!

Author: Amitai Sasson

Amitai Sasson is the Online Marketing Director at overstockArt.com. With a Masters Degree in Computer Science and an MBA from Tel Aviv University, he has a unique perspective on the explosion of data mining capabilities and the e-commerce realm.

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