An excellent article appeared in Operations and Fulfillment magazine written by Ron Cain and Andy Dishner (both with TMSi) entitled, "Outsource Your Logistics Without Fear". Since Mitch and I do industry training on how to set-up and manage company stores, I am often asked about outsourcing the warehousing functions such as inventory management, pick-pack-and-ship, and storage.

Ron Cain and Andy Dishner reference a study done by Georgia Tech University that discusses how transportation and warehousing remain "the most commonly outsourced business function." The article defines how you should go about picking a 3PL and the steps you should take to both qualify and start working with a trusted partner. I cannot add much to their rich content, I must only add a comment that is unique to our business. Since we work in a creative industry, one of the key points I emphasize over and over is that the deliverability of final goods is the ultimate barometer for a successful program. The technology is important. The creativity is key. But the physical process of getting branded products to their final destination point trumps everything. You can nullify all your creative efforts by not getting the final product where it needs to go or by not getting it there on time. I emphasize this painfully obvious point because I find most people are less interested in this "back-end" process than the front-end (creative, product selection, etc.) and they could not be making a worse mistake. If you do plan on outsourcing your fulfillment, whether you are a company trying to handle your program yourself or whether you are a distributor (like us) managing branded products for your clients: creating a smooth relationship with a competent 3PL will ensure you get to keep the business you've worked so hard to get. If you are thinking about outsourcing your transportation or warehousing, read Ron and Andy's article!

For more information on Fulfillment Services, please contact us at Robyn, 877-211-9711 or email us here.