Making The Most of Your Outsourcing Agreement

Businesses that enter into an order fulfillment agreement with a third-party fulfillment provider enjoy numerous advantages over businesses who perform their logistics duties themselves. Typically, ecommerce and small business clients of fulfillment service providers are able to turn over, or outsource, many potentially problem-creating issues such as warehousing, storage, hub induction, cross docking, pallet storage, and customer service matters to their third-party logistics provider. This frees them to concentrate their resources on business growth-specific matters including marketing, website or brick and mortar development, and promotion.

Yet many clients of third party logistics providers or order fulfillment service providers fail to completely utilize the range of options the order fulfillment companies very probably make available to them. These services are business necessities that can drain time and capital resources from small businesses at an alarming degree, while remaining relatively less taxing for order fulfillment services already experienced and proficient in such tasks. These tasks may include:

Mail Order Fulfillment

Studies into online and website traffic reveal an important truth about mail order and other promotional mailing initiatives: sending catalogues, newsletters and business information circulars can help you increase your image profile. By sending out mailing using traditional postal routes, you demonstrate a prosperity and stability that your customers will react to with positive notice.
Many ecommerce businesses fail to realize that millions of Americans are reluctant to engage in business with an online enterprise solely from anxiety regarding the business’ stability. Sending mailings allows the business to prove its trustworthiness while at the same time enlarging your company’s profile past the online environment.

Cold Storage

Especially useful for businesses dealing in fragile or perishable items, the cold storage provided by order fulfillment services would cost ten of thousands of dollars to approximate by a private company attempting such an effort on their own. Cold storage can include refrigeration and deep freeze equipment and management both during the warehousing stage of logistics management as well as during the packing and shipping.

When planning an outsourcing agreement, it’s important for the potential fulfillment service client to determine how many of the services are needed now but also how many will be needed in the future. Remember too that many fulfillment service companies may have specialized rates that will grow with you as your business grows. These rates are typically a percentage of each product sold, though the rate itself will vary.