Why It Makes Sense to Use aFulfillment CompanyWhile economic indicators continue to be cautiously optimistic, many busines...
Human Resources• Hiring, training and staffing personnel to support your daily order volume is a time-consuming and expens...
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Why it makes sense to use a fulfillment company

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While economic indicators continue to be cautiously optimistic, many business owners today are looking for ways to reduce fixed costs and labor expenses to be more efficient. But in a customer service-oriented business environment, doing everything yourself may not necessarily save you time or money.

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Why it makes sense to use a fulfillment company

  1. 1. Why It Makes Sense to Use aFulfillment CompanyWhile economic indicators continue to be cautiously optimistic, many business ownerstoday are looking for ways to reduce fixed costs and labor expenses to be moreefficient. But in a customer service-oriented business environment, doing everythingyourself may not necessarily save you time or money.When your business model includes processes that require special equipment andexpertise outside of your skill set, you are better off focusing your attention on yourstrengths and relying on the experts in very specialized areas to keep all facets of youroperation running smoothly.Take, for example, Product Fulfillment.An experienced fulfillment provider can focus on all of the details involved in taking careof your product orders on a daily basis and getting them to your customers quickly andefficiently, while you focus on what you do best - managing and growing your business.And while you may think it is much more economical to handle your own fulfillmentactivities, consider putting your assets where they will do the most good for yourcompany.Housing your product• Leasing warehouse space is a long-term commitment, so tying up your capital inwarehousing may not be the best choice. Consider, instead, the benefits of spendingthat money for marketing or manufacturing product to sell.• As your business grows, the amount of warehouse space you need will increase.However, committing to a multi-year lease in your first year of business, to fill yourneeds in years two, three and so on, is likely an unreasonable expense.Equipment• Purchasing equipment to support your continually growing business is like steppinginto quick sand, i.e. as your business grows, the need to purchase fork lifts, racking,shipping software, and supplies will continue to escalate. Spending money on thesecapital expenditures will continue to require dollars which you could instead spend oninventory or marketing to grow your business.
  2. 2. Human Resources• Hiring, training and staffing personnel to support your daily order volume is a time-consuming and expensive task. Adequately staffing for holidays, vacations and sick daysrequires back-up personnel who may or may not be available when you need them themost. In many cases, part-time workers will not consider your needs a priority unlessyou can commit to employing them a certain number of hours and days per month.To gain efficiencies in production, you should ideally continue to use the samepersonnel. But your order volume may vary greatly during different times of the yearcausing you to use temporary labor, which may not be very efficient. A professionalfulfillment provider can provide qualified personnel year-round who are familiar withyour products and your companys policies.Go with an expertLearning all you need to know about shipping options, rates, utilization of space,software programs, technology, PCI compliance, etc. can be a full-time job; and can becostly. A qualified fulfillment company will have made all of these issues priorities in itsbusiness and will have the ability to level the cost among several companies. Plus, byutilizing a professional fulfillment provider, you will have the opportunity to agree toand expect certain standards of service. You will also know that your partner has anobligation to adhere to these standards 365 days a year. With a fulfillment agreementin place, you can advertise and assure your customers of the highest level of serviceand satisfaction.

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