Your CFO wants you to curb expenses. We get that. You have to be cost-conscious to achieve a healthy bottom line. But sometimes the cheapest price isn’t the best investment. This can be glaringly true in the case of something as complex as order fulfillment pricing.
For some companies, bare bones, “just-get-’er-done” order processing is quite acceptable. Maybe you sell only one product, or just a few, so filling orders is a simple, straight-forward process. The cheapest order fulfillment pricing can be a smart choice for you. For that matter, any fulfillment company will do, too. No need for you to be picky, or worry the company handle your needs.
You should expect to pay more if you’re receiving more services. Or highly customized services. Or higher quality work. Depending on your industry and the specifics of your product line(s), your fulfillment requirements are likely to be complicated. Lots of products means lots of variables that have to be accurately accounted for every step of the way.
Customer care agents, pickers, packers and shipping personnel all need real-time inventory information. They need to communicate easily and work efficiently. That requires a well-integrated system of high-tech equipment and software. The cheapest order fulfillment pricing can’t cover that. It costs more for the best fulfillment companies to maintain state-of-the-art facilities and hire and train top-notch people. It costs more to install redundant systems, to ensure systems are online and on track.
And what if your company has even more specialized requirements? For instance, health and beauty products, dietary supplements and other perishables must be stored in very specific conditions to protect their efficacy. Systems have to track items precisely to monitor expiration dates. Few fulfillment companies have the facilities or the certifications necessary to handle this work.
Security is vital, too. Order fulfillment pricing must account for systems that protect your company and customer data and protect your inventory from shrinkage. Again, the basics may be acceptable for your company. Or you may want a fulfillment partner that can provide 24/7 protection that includes live, monitored video surveillance and keycard entry to all facilities.
As important as it is to manage your costs, you cannot afford too-low order fulfillment pricing that could undermine your company’s branding or competitiveness. You can pay less. But if you don’t get what you need, you could lose customers. An under-performing fulfillment program can cost you in lost revenue and lost market share. Instead of growing, your company will decline.
So before you pick the cheapest option available, consider what reliable, full-service fulfillment really means to your company. Then compare order fulfillment pricing details to see which company can deliver the highest, ongoing return on your investment.
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