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Q. What makes it worthwhile to move to an outsourced fulfillment company?
A. There are many reasons to use a fulfillment company for example:
- You have outgrown your own storage and the space and personal time challenges are enough to move you out.
- You are testing new products constantly and these tests strain your current fulfillment center.
- The real estate, benefits and customer service costs are crippling and you need to find a better way.
- You want to take advantage of economies of scale to save on material costs
- Your business is cyclical which causes you to maintain overhead not needed during the down times. Outsourcing allows you to pay for only for the services you need.
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Q. With fuel costs fluctuating and shipping restrictions changing, how do I know which service I should choose when trying to get my products in my customer's hands?
A. There is no set answer as each service has its own benefits. Each package should be examined to determine how best to ship. Packaging, weight, destination, tracking should all be considered. Our team with 25 years of fulfillment experience will evaluate your core shipping strategies and make recommendations before the first package leaves the center.
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Q. What should I look for when selecting a fulfillment company?
A. As always there is no simple answer. Some key elements to consider include:
- Volume capabilities - Can the center you select handle the quantity of shipments or product to be stored? Is your volume too large or too small for the center?
- Experience - Does the fulfillment center you are speaking with understand the requirements for the type of product you are offering or the audience to which you market? (Consumer vs. Business to Business). Can they anticipate the challenges and call on experience to resolve them?
- Trust - By packaging and shipping your merchandise to your customer the fulfillment center plays a critical role in meeting your customer's expectations. You need to be able to trust the orders will go out correctly and in a timely manner. You also need to be comfortable with your fulfillment partner as they will be storing your inventory.
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Q. Why is pricing different every where I go?
A. Pricing is an interesting discussion in that the variations of pricing are usually the result of history. Some organizations price with a flat fee that is seemingly all inclusive, others itemize to a degree and others itemize to a deeper level. We choose to itemize to the deepest level to prevent unpleasant surprises come billing time. There are few discussions less pleasing than the one that starts "you never told me about...." Our pricing policy is to let you know all of the charges you will incur. You will never see a charge for a service you were not aware of.
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Q. I have multiple products with many variations. Is this difficult to work with?
A. All fulfillment centers have procedures in place to minimize the confusion of various products and their style options. Inventory control begins right at the loading dock before a single piece is put in storage. Computerized inventory not only prevents errors, it also increases success, by providing analysis and trend identification. The fulfillment center should utilize your sku codes so everyone is speaking the same language.
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Q. Do fulfillment companies offer more than pick, pack and ship?
A. Although we can't speak for all fulfillment companies, we have found that our experience in pick, pack and ship has enabled us to excel at assembly jobs too. Whether putting together gift bags or special promotion items, we have discovered that our experience allows us to perform assembly in a very timely and cost effective manner. On a side note, we have also been successful in helping organizations overcome the unexpected. Any job that requires opening, a task or two, resealing and shipping falls perfectly into the work a fulfillment center does well.
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Q. Can fulfillment centers work with companies that have multiple sources for orders?
A. The business of a fulfillment company is to understand the processes their client uses to get orders, create a process to fulfill those orders and alert the client to the impact of those orders. Whether Business to Business or direct to Consumer, the various processes we need to be compatible with daily are many. Program set-up and daily evaluation help us to make sure that our clients don't have to worry about getting product to their clients!
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Q. Can fulfillment companies do everything from take the orders to delivery including inbound order taking and billing?
A. All fulfillment centers are different. Some organizations have internal departments for all functions of the order process through delivery. Fulfillment Plus has chosen to specialize in the actual handling of product. Through partners, we can set up an order process either with an inbound telecenter or through commercially available order processing software. We have found this approach allows full transparency for our clients. By dealing with specialized partners and/or software our clients gain the best in class service levels throughout the entire fulfillment process.
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Q. Do you have any suggestions as to how I might increase the value of my customer while fulfilling an order?
A. The simplest suggestion would be adding a promotional piece to every package. Whether it is a catalog or some discount on the next order, this stimulates further action on the part of your recipient at a nominal marketing cost. There are also strategic designs of the packing slip and shipping materials which can increase customer retention as well as reorder levels.
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Q. Why is fulfillment an important part of customer service?
A. The fulfillment process enhances your image with your customers. The quality of the fulfillment services is reflected in the condition in which your clients receive their ordered products, how timely the order arrived and the initial perception of the package received. The key is no one should even know there is a fulfillment company and they should be positive once the ordered product is in their hands.
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Q. What is the largest expense of fulfillment?
A. Postage. When comparing fulfillment centers it is important to understand how the packages will be prepared for shipment. Postage costs are typically 2/3rds of the entire fulfillment charge. Package preparation can result in a tremendous postage variance between fulfillment centers.
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