Introduction
If your business has been growing to the point where it’s time to find a fulfillment partner to warehouse, pick and pack and ship your products, how should you go about finding the right company? What should you look for? Of course, all of these components will depend on your unique needs.
As you search for companies in shipping, we’re here to offer you insight into the full-service model. In this article we will cover the wide range of services that a fulfillment company can provide.
The Full-Service Shipping Model
The full-service model will serve as an operational arm for your business, beginning with back-office support. This includes communications with your sales representatives, customer relationships & interactions, accounts receivable, accounts payable, and shopping cart management. In essence, back-office support will free you up to focus on growing, developing and promoting your business.
A full-service company is able to fulfill high-volume eCommerce, B2B retail, returns and refurbishment, kitting and assembly, value added services, quality control and more. Look for a company that offers omnichannel fulfillment, which accommodates all sales channels.
Your search for companies in shipping should lead to measurable shipping discounts. Full-service companies have beneficial relationships with carriers, price-comparison software, and skill at finding the lowest shipping rate for the time in transit. There are shipping benefits as well if you choose to work with a fulfillment company that has warehouses in several locations, preferably on both coasts. The closer the warehouse is to your clients, the higher the likelihood for reliable shipping services.
Finally, give attention to the fulfillment company’s technology, which should allow you to see where your products are in the fulfillment process at all times, from the moment your products arrive at the warehouse until they are in the hands of the buyer. The importance of the company’s warehouse management system cannot be overstated. Your fulfillment company’s system must seamlessly integrate with your system.
As you research, look for a balanced business approach that prioritizes customer satisfaction, and keeps you informed at all times.
Understanding Fulfillment Partners
The fulfillment service that you inevitably choose will need to be your true partner. The fulfillment company will need to work with your company closely as an operational arm of your business. It is vital that your search for companies in shipping leads you to a company that wants to truly know you.
The fulfillment company needs to take a strong interest in you; your products, your business, your plans and desires. Another very important ingredient is the ERP system and business integration – the technology of the fulfillment service must be streamlined, automated, and synchronized with your systems.
Your partner needs to collaborate and strategize with you on the flow of data. You need to have accurate information on all of your inventory by SKU for all open sales channels including all forms of wholesale/B2B, eCommerce, drop-ship and brick and mortar channels.
Key Considerations When Choosing a Fulfillment Partner
Location and Shipping Zones
Your first consideration would be the location of the fulfillment company’s warehouses. Warehouse location has everything to do with optimal delivery times to your customers. Ideally you want locations on both coasts. Your fulfillment company must be able to locate your products near your customers, especially if you wish to offer next-day or two-day shipping. Nearness to your customers reduces shipping costs, so when looking for companies in shipping, look first for the location of their warehouses.
Scalability and Flexibility
Secondly, will the fulfillment company be able to ride the waves with you regarding warehouse space? What is the scalability of the company you are investigating? In other words, does the company have processes in place to effectively manage through dynamic changes in your inventory? The answer must be a resounding yes.
Technology and Integration
What about the company’s technology? You want their system to integrate with yours so you can track your inventory from arrival at the warehouse to delivery at your customer’s door, i.e. real-time data. The fulfillment company should have in-house IT personnel who can respond, provide support, and find solutions. You want your partner’s warehouse management system to optimize your operations and keep you informed at all times.
Cost and Pricing Structure
Another important consideration will be the cost and pricing structure. The cost of your fulfillment service would obviously depend upon your needs. Based upon your needs, what fees does the company charge for receiving and storage, pick and pack, returns and refurbishment, outbound shipping, value added services and so forth. Your efforts at price checking various companies & a company’s range of services should lead you to the highest quality for the investment.
Experience and Reputation
When searching for companies in shipping some vital questions will be… how long has the company been in business and what is the longevity and fulfillment experience of their management team? Also, you will want to look for recommendations from other companies similar to yours. The fulfillment company’s sales team can inform you of client recommendations or recommendations can sometimes be found listed on the company’s website.
Customer Service and Support
How is the fulfillment company’s customer service? Will you get the responses you need? Some companies are very passionate about serving you as a fulfillment client and knowing you and your business.
Before choosing a fulfillment company, pay attention to how they serve you during your investigation. We recommend a site visit and all of the conversations and agreements you need in order to have confidence in your choice. A top-notch fulfillment company will have a very comprehensive onboarding process wherein they learn all about the client and demonstrate their passion regarding customer service.
Steps to Find the Right Fulfillment Partner
1. Identify Your Business Needs
Your first step will be to identify your needs – what are you looking for in a fulfillment company. How many services do you need? A full-service company will warehouse your products, it will pick, pack and ship, but it will do much more if needed – it will be your operational arm, allowing you to focus on development and promotion of your business.
2. Research Potential Partners
The next step involves researching different companies, looking at the longevity of the company and recommendations from clients who have been or are utilizing the company. The choice of which fulfillment company to work with is vital to your success, so thoroughly search and interview and pay attention to your potential partner’s interest in your needs.
3. Request Proposals and Quotes
When you find companies that you want to look into, request further information. Request a proposal from the ones that are of interest to you and get price quotes for the services you need.
4. Conduct Interviews and Site Visits
Your next step would be to visit the fulfillment centers that interest you, interview the representatives from the company and get all of the information you need to make your decision. Making an in-person visit to the company is an important step to take.
5. Evaluate and Make a Decision
Finally, analyze the pros and cons of each option, look at all you have found, evaluate what will work for you and make your decision. Choose a company with a very thorough onboarding process with all details discussed.
Your chosen provider should be very interested in your needs, ready and eager to work with you. You want and need a perfect fit, as top-notch fulfillment is absolutely vital to your success.
Common Mistakes to Avoid
There are some common mistakes in choosing a fulfillment partner that can lead to a regrettable decision.
The first of these is choosing your partner based solely on cost. Look at all of the factors for services you need, and choose the partner that you are confident is the best fit. Cost matters, but it is not the most important factor. You want top notch services, especially in the case of technology. Communication between partners requires the best of technology that integrates seamlessly with your technology.
Can the fulfillment provider scale with you? Scalability is vitally important as your company needs room to grow and the company must be able to handle seasonal resets.
And finally…perhaps most importantly, your chosen fulfillment company must have excellent customer service. You want someone who listens to your needs and responds quickly with professionalism.
Conclusion
In this guide, we’ve attempted to aid in search with a list of the top offerings from full-service fulfillment companies. We’ve also provided recommendations as to what business owners should look for. We’ve talked about location, scalability, technology, cost, experience and customer service. Keep these things in mind as you search for the perfect partner.
Finally, we encourage you to look into AMS Fulfillment. We are a full-service fulfillment company, in business for more than 20 years. We invite you to contact us in your search for a successful partnership, as that is what we do! In addition to providing all of the services mentioned, AMS is a B Corporation highly regarded for our care for our employees, our community, our clients and our shared Earth. We are a true partner to the clients we serve.
For more information about our services, contact us or give our team a call at 800-931-4267.
