Cliff's Notes
Focusing on Fulfillment
E-commerce and multi-channel retailing are the new reality in today’s marketplace. Growth of these practices is having a tremendous impact – not only on shoppers’ experiences, but also on the supply chain as we know it.
Never has order fulfillment been more a more critical business function. Consumers demand the perfect order every time. They also expect to have a consistent brand experience from channel to channel – whether they’re shopping by phone, on a pc, or in a store.
Providing effective order fulfillment in this environment has proved challenging for many companies we’ve talked to. The practice has evolved to a level of sophistication that requires carefully planned processes, state-of-the-art systems, and efficient transportation – all of which require extensive expertise and resources that can divert attention away from core competencies. Scalability is also important. Operations must be readily expandable to meet future needs quickly and easily.
Often, companies recognize that they can better control costs, accommodate business growth, and ensure service excellence by outsourcing some or all of their fulfillment needs. Turning to a third-party provider offers a number of advantages, including:
- Advanced Technology – Robust, flexible systems are critical for both inventory control and visibility. Automation support also helps increase efficiency. Outsourcing to a third-party provider gives you access to these capabilities without the associated overhead investment.
- Flexibility – The ebb and flow of business, seasonal products, and other considerations can be a challenge in terms of staffing and space. Third parties have the resources and experience to take such fluctuations in stride and grow along with your business.
- Fulfillment Network – Having multiple distribution centers to choose from when shipping products. Being closer to the customer can help you increase transportation efficiency and minimize final-mile delivery charges.
- Value-Added Services – Third-party providers can offer streamlined solutions that include a variety of integrated services – from packaging and kitting to negotiating transportation rates.
- Multi-Channel Expertise – Companies doing business in multiple channels appreciate the convenience of having a full-service provider able to handle all their needs under one roof in a consistent manner.
When deciding if outsourcing is right for your business, consider a few key questions. Do you have the time, expertise, and resources required to consistently deliver perfect orders? Are your operations streamlined for optimal efficiency and cost effectiveness? Are you prepared to handle business growth in a responsive manner? If you answer “no” to any of these, outsourcing your fulfillment function may be worth exploring.
With the right fulfillment solution, you’ll be able to provide outstanding customer service while keeping your focus where it belongs – on growing your business.
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Cliff Otto is president of Saddle Creek Corporation and Saddle Creek Transportation. He has more than 30 years of industry experience and has held leadership roles with the Council of Supply Chain Management Professionals (CSCMP) and several grocery industry associations, and served as national president of the Warehousing Education and Research Council (WERC).