Post a new topic
    3 Replies Latest reply on Feb 3, 2013 1:12 PM by Moderator Berta

    Outsourcing to Fulfillment Services Company?

    karen100 Newbie

      Hi,

       

      A few of my family members and I started an online baby apparel store named Planet Young. Our business has been growing very rapidly and we would like to move our merchandise out of our current location. We have the option of either opening our own warehouse or outsourcing our warehousing to a fulfillment services company.

       

      I've learned that opening your own warehouse can be very difficult especially since non of us have real warehousing experience so we are leaning towards the second option. One concern about fulfillment services companies is that they might not provide the same level of customer service that we currently do. We are currently located in New York City and would prefer to deal with a fulfillment services company in our area. Does anyone have experience with these types of companies?

        • Re: Outsourcing to Fulfillment Services Company?
          Moderator Berta Guide

          Hi Karen,

           

          Congratulations to you and your family on your business! You have come to the right place, I'm sure our members will be happy to give you some advice and share their experiences.

           

          ~Berta

          • Re: Outsourcing to Fulfillment Services Company?
            Mike Ratchford Wayfarer

            We do fullfillment for our printing customers so we have some experience in the area.  I would start by outsourcing the project becasue it gives you a fixed expense that you can budget as part of your cost of goods.  If you do it yourself you have the expense of expansion and growth to build in, that outsourcing pushes to your vendor.  They also have the turnover and training expenses that you will not have.

             

            That said, the way to control quality and insure your customers receive the same experience from you or a source is to have what you expect documented.  This is how we want our customers serviced and can you provide this for us.  When you are controlling the process and telling them what you want and expect you then have a benchmark to measure their service.  We never take a client that the service process is not documented and agreed upon.  If you expect it then design and inspect it.

             

            But I would take it out.