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 As recently as five years
ago, 50% of fulfillment was outsourced.
Currently, that
number is in excess of 80%.
That’s a dramatic
shift and cause for consideration.
Look inside your
company and ponder this.
By outsourcing fulfillment to
a third party, owners and managers
realize the potentials for:
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- gaining control
of operating costs
- reducing
operating costs
- improving
company focus
- increasing
energy and commitment in non-core
areas
- freeing internal
assets and resources for other
purposes
- minimizing
ongoing investment needed for the
internal infrastructure
- gaining access
to resources that are not available
internally
- gaining access
to world-class capabilities
otherwise precluded
- accelerating
reengineering benefits
-
gaining
control of a function determined to
be
- difficult to
manage
- out of
control
- freeing capital
funds
- transforming
fixed costs into variable costs
- improving
ability to control delivery
scheduling
- sharing risks
- realizing cash
infusion
- the outsource to
respond more quickly and efficiently
to peaks and valleys
- converting an
expense item into a profit center
- acquiring new
ideas that increase your business
- increasing
flexibility to meet changing
business conditions
- availing special
supplier benefits. e.g. increased
security, perpetuating workflow,
etc.
- amplifying
service by focusing on the supplier
- developing
potential income streams by
transferring assets to the provider
- gaining
additional marketability and
business growth through outsourcers
network connections
- developing
preferable internal management
disciplines resulting from the
exercise itself
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When considering
outsourcing fulfillment, you may find bigger is
not always better; nor does one size fit all!
It seems to be more
about congruency.
Are your customers
served at a level equal to or better that if you
were to continue with internal fulfillment?
Do the
methodologies and efficiencies make sense?
How effortless will
the transition likely be? Is the outsource
technology current?
Do you have 24/7
web-based viewing access to
inventory databases,
customer data bases,
order transactions, order
cancellations and returns?
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Look inside your company.
Answer some of
these questions to your own satisfactions.
We can answer
others.
Either way, we look
forward to the opportunity to help!
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