For the small business owner, outsourced order fulfillment provides the chance to fast track their business growth, taking its size and market presence to levels that would otherwise take much longer to achieve. Logistics management companies offer their client companies state of the art fulfillment and order processing services, with many also offering additional services such as customer service staffing and direct mail marketing logistics control.
What does fulfillment mean?
The term refers to all the steps in the process between accepting product inventory from the manufacturer and shipping the packaged product sample or unit to the customer’s designated delivery address. The workings of each process are varied and complex, ranging from advanced warehouse administration to planning complex and elaborate shipping and cargo management systems. The term also refers to after the sale customer service, including conflict and complaint resolution and question resolution.
How is it outsourced?
Third party, independent logistics management companies plan for a resource transfer date well in advance, so companies ready to make the change to outsourced fulfillment have time to coordinate with their own inventory delivery and wholesaling and manufacturing providers. Once the transfer is complete, the logistics service provider receives all product inventory into their own facilities. Order are processed and shipped by the service provider as well, usually at the same location.The trained staff of the service provider company is trained in efficiency and in minimizing product loss, resulting in greater cost effectiveness and productivity for both the service company but especially the client business.
How is the service provider company paid?
The service provider company, also known as the fulfillment house, typically deducts a percentage of each product sold as its service fee. The more products processed and shipped, the greater its profits – in other words, the provider company has a strong vested interest in helping their client businesses grow.
What’s the best way to research which company if right for my business?
The secret to finding the right fulfillment service company is research, and plenty of it. Request client testimonials from your prospective providers, and also perform due diligence by checking the service company out on internet message boards and online forums. The more research you take the time to do the better of a choice you’ll be able to make when making your final fulfillment service company decision. It’s a good idea to talk to a fulfillment company directly to find out what solutions they offer for your particular business.