What is the Process for Outsourcing My Company’s Fulfillment & Shipping Needs?
One of the most critical steps in serving a customer is to ensure timely and accurate order fulfillment, which also involves shipping a product through the most efficient channels. Your business can execute each step of the customer engagement process and still fall short of meeting expectations by implementing an inferior fulfillment and shipping program.
Outsourcing fulfillment and shipping involves hiring a third-party logistics company such as Complete Mailing & Printing to handle this critical last step in the customer engagement process. Businesses benefit from outsourcing fulfillment and shipping for several reasons. First, your business quickly scales up or down operations based on customer demand. Second, you enjoy cost savings by implementing a much more efficient fulfillment model. Your business is no longer on the financial hook for expenses like labor, equipment, and warehousing. Third, your customers receive better service because of faster shipping times and enhanced product order accuracy. Other reasons to outsource fulfillment and shipping responsibilities include reducing legal liabilities and gaining access to the most advanced technology.
Now that you understand the benefits of outsourcing fulfillment and shipping responsibilities, what are the steps you should take to achieve optimal performance?
Choose the Right Partner
Many factors come into play when choosing the best partner to handle your company’s fulfillment and shipping needs. It starts with identifying your needs, such as knowing where your customers live and ensuring your new partner has warehouses close to where your customers live. Then, you should consider the technology used by a potential partner, such as the type of inventory management software that integrates flawlessly with your technology platform. The partner that handles your company’s fulfillment and shipping responsibilities also should possess expertise in moving the types of products sold to your customers.
Prepare for the Switch
Choosing the right partner to handle your company’s fulfillment and shipping responsibilities is just the first step to making the transition work. You also must prepare for the switch by factoring in order SKU counts, order volume, and storage requirements. Planning for the transfer of inventory represents one of the most important phases of the transition to outsourcing fulfillment and shipping. This includes closely coordinating shipping logistics, labeling requirements, and inventory management procedures. Training your team members to adapt to the new fulfillment and shipping model also represents an important step in the preparation process.
Monitor Your Partner’s Performance
Your business should set clear metrics for your partner to achieve fulfillment and shipping goals. Establish KPIs for order accuracies, shipping times, and customer feedback. You should assign one or more team members to track and report on the established KPIs to highlight where your fulfillment and shipping partner needs to improve services.
Communication represents the key factor for monitoring performance, such as daily check-ins and once-a-month live online meetings to address issues and/or discover better opportunities.
Improve Performance
It is one thing to stay on top of your fulfillment and shipping partner’s performance. It is quite another thing to take the metrics you have gathered and then devise strategies to enhance operations. Based on hard data and softer customer feedback, your business should be able to make quick changes to operations, such as improving technology and hiring more experienced team members.
You also want to implement measures that ensure your partner complies with industry best practices, as well as state and federal government regulations.