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Is it Time to Consider Switching Order Fulfillment Companies?

Some organizations embrace change with open arms while many will stick with the status quo to avoid the extra work and effort inherent in transition. In spite of this resistance, there are some obvious signs and indications that making a change will significantly impact and improve your business operations. This is especially relevant when you consider order fulfillment management. When should your organization consider a change to your order fulfillment operations?

You know it may be time to seek a new order fulfillment company when these situations arise:

Your Customers are Dissatisfied and Stop Buying from You

Newvoicemedia.com reports 51% of customers will never do business with a company after one negative experience. American Express  <link to source> says 33% of customers will switch companies after receiving poor service. According to Harvard Business Review <link to source>, it is 5 to 25 times more expensive to acquire a new customer than retain a current one. Bain & Company reports increases of 25% to 95% in profitability with an increase of 5% in customer retention. Businesses need to provide the best customer service possible in order to maintain profitability and work towards expansion. Order processing and fulfillment are a vital and integral part of the customer experience. Are your customers satisfied with your operations?

Your Business Grows and Your Provider Isn’t Able to Meet Growth Demands

The holiday season is one of the busiest for online purchases with significant increases in e-commerce orders during the 2020 holiday rush. Was your order fulfillment company able to keep up with increases in your order activity? With the increase in activity, were your orders shipped accurately? Were damaged orders kept to a minimum? Your order fulfillment partner is an extension of your organization. If your current provider’s operations aren’t in alignment with your needs and changing order requirements, it may be time to find a new fulfillment provider.

Costs Are Out of Line

Fulfillmentcompanies.net discourages using fulfillment costs as a percentage of gross sales as a metric, however, they share the most efficient providers operate at 8-10% of sales, with the average at 10-15%. Less efficient fulfillment companies and products requiring significant storage, handling, or shipping requirements operate around 20% of gross sales. While careful examination of line item costs will deliver the best result, fulfillment costs as a percentage of gross sales will provide an indication if you may want to re-evaluate your fulfillment operations.

Orders are Cancelled

Customer expectations for quick and timely order delivery with little to no shipping costs have grown in recent years. According to Statista.com, 35% of orders are cancelled due to long delivery times.

Does your product fulfillment company turn your orders around in a timely fashion? Do they have facilities in cities that allow for quick delivery times without the expense of expedited shipping? If you answered no to either question, it may be time to change.

Your Partner Can’t Adapt to Fit Your Business Needs

Do you need more space? Do you have special storage requirements? Does your order volume fluctuate by season? Require special packing, kitting, or assembly? Most importantly, do your packages arrive exactly as you would like when they are delivered? Are there inserts or special labels? Do you have special packing needs to avoid damage or issues during the shipping process? A well-aligned fulfillment partner is key to addressing all of these concerns and situations.

Systems and Software Aren’t Up to Date

In recent years, warehouse management systems, e-commerce platforms for online stores, retail point-of-sale systems, and application programming interfaces (APIs) have become the lifeblood of order processing, management, and fulfillment. Technology changes frequently, adding new features delivering improved efficiency, additional reporting features, and ease of use. Does your fulfillment provider stay abreast with these integrations and services?

Our Onboarding Process is Simple.

It’s often easier to avoid change and create work arounds to address fulfillment needs. However, organizing your fulfillment operations to ensure top performance will result in a better customer experience, reductions in fulfillment costs, improvements in efficiency, and contribute financially to bottom line results and profit.

Product Fulfillment Solutions operates as an extension of your brand. We deliver your products and your brand exactly as you specify. Processes and procedures are developed to ensure consistent compliance resulting in satisfied customers. We welcome the opportunity to discuss your business and fulfillment operations. PFS will conduct an analysis to identify ways our services may be of benefit to your organization. You shouldn’t have to worry about the daily hassles of order management, processing, packing, and shipping. A trusted partner like Product Fulfillment Solutions enables you to focus on what you do best – growing your brand and your business.

If you’d like to identify ways to improve your fulfillment operations, call or text Greg at (734) 306-0002 or send an email at greg.handloser@productfulfillmentsolutions.com to schedule a call.

 

 

 

 

 

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