Wednesday, March 30, 2011

Order Fulfillment Services Outsourcing: Why it’s Right for Your Business

Justifying the outsourcing decision: 10 reasons to take to your management team

1. Access Best-in-Class Capabilities
Third party order fulfillment service companies provide you access to expertise that is typically not readily available internally.
2. Enhance Core Business Focus
Outsourcing Pick and Pack lets you spend more time marketing and growing your business and enhancing your products and services. Supply chain operations are taken off your plate and put in the hands of a proven expert.
3. Achieve Operational Excellence
Your fulfillment partner will seamlessly add operational expertise to your organization, enhancing your overall efficiency.
4. Enhance Customer Satisfaction
Fulfillment is a critical connection to the marketplace and your customers. A smooth running supply chain will improve your reputation for quality and reliability, while building long term customer loyalty.
5. Preserve Capital
Why invest in warehouse space, technology, and additional operations staff if you don’t have to. Outsourcing lets you redirect your capital to growing your business.
6. Reduce Operating Costs
Outsourcing helps lower or eliminate costs that would be necessary to manage an internal fulfillment program: staff, training, facilities, freight, and on-going administration. Further, fulfillment outsourcers have the resources and relationships to achieve critical economies in areas such as freight consolidation and pass on the savings to their customers.
7. Speed Time to Market
Outsourcers are equipped to get your products into the hands of your customer quicker and cheaper. This is particularly for those order fulfillment companies who are strategically located near the highly populated Eastern United States.
8. Leverage Technology
Leading fulfillment companies understand the critical role of technology in the order fulfillment process and have invested in systems and infrastructure to support their service delivery. Through outsourcing, your business gains access to the benefits of this technology without having to make the investment yourself.
9. Support Multiple Channels
Many ecommerce order fulfillment providers have diverse services to support product distribution across multiple channels’ B2B, B2C, Direct-to-Store shipments, and more.
10. Adapt to Change
Similarly, as market forces and buyer behavior drives changes in your product lines and service offerings, your outsourcer is well positioned to grow right with you, leveraging its investment in people, facilities, and technology.

Kenneth Kowal is Director of New Business Development at Landis Logistics and can be found talking about ecommerce order fulfillment for startups on LinkedIn and Twitter.