| What Services can a Fulfillment Company Offer? |
The services offered by fulfillment companies can vary fairly dramatically, so when you’re shopping for a fulfillment service provider, make certain you match your needs to the particular set of services provided.
Check out their specialty and the facility’s amenities
For instance, some companies specialize in certain types of fulfillment such as books and videos, where others might specialize in fulfillment for infomercials and direct response television spots. Still others, like Innovative Fulfillment Solutions (IFS), may fulfill specialty products, such as nutraceuticals and cosmeceuticals, which require a climate-controlled warehouse environment. So be sure to discuss your specific needs to ensure the fulfillment company knows exactly what your business requirements are and can carefully match them with the services they provide. Also, ask about any particular special services that might be provided by the firm you are considering.
Size matters
Size is another factor to be explored. Some fulfillment companies will have acres of warehouse under one roof, which may be necessary for a very large volume business. But if your business ranges from, say, 20 to 1,000 orders a day and you’re looking instead for “high touch” customer service and high quality account management, you might be better served to select a midsize company that offers hands-on account management to ensure your customers have a first rate experience.
Location, location, location
Location is one of the most important things to consider. Having your fulfillment based in the central part of the country can make a HUGE difference in both your shipping time and the cost of your delivery. And quicker delivery can often mean the difference in getting a customers order and losing it, especially if the customer would have to pay expedited fees to ensure delivery in time for a birthday, Christmas or other seasonal holiday and special occasions.
A central location can also mean uniform shipping costs since UPS and FedEx both base their rates on distance traveled. Shipping from the center of the U.S. will almost always cost less because the distance traveled is always less. To get a better picture about the impact on your costs and delivery time, visit the delivery map on the IFS website (link here). Purchasing and managing multiple inventories in several geographical locations can be costly and may not really generate much in the way of savings on shipping costs.
Make a list and check it twice!
Here is a tip: If you want more than just a pick/pack/ship service, sit down with your business partners and/or executive team and make a list of the services that are most important to you. Here are some areas to consider:
- Customizable services to fit your specific business needs
- Web order processing
- Credit card processing with DCI-PSS compliance
- Inventory management
- Shipment tracking and confirmation of delivery
- Climate-controlled facilities and storage
- An in-bound call center operation
- Customer service and order-entry via the phone
- Measurable accuracy in “pick and pack”
- A dedicated account manager
- Database management
- Data mining to assist your marketing efforts
- Scalability to fit your growing business.
- The ability to ramp up for seasonal spikes
- Central shipping for faster and more cost-effective delivery.
Time spent now can mean a big payoff later
By taking the time now to consider any special requirements you need for storing, handling and delivering your product, as well as how you want your customers to be treated, you will have the specific criteria necessary to choose the right fulfillment provider. As a result, you will have more time to manage the many other aspects of your business and avoid any unexpected issues that might affect the quality of your merchandise or the level of service your customers receive.