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Best practices in the search & selection of a 3pl Partner

Best practices in the search & selection of a 3pl Partner. OPERATIONS SUMMIT 2013 Presenters: Rick Hall – VP, Client Success, FIFTH GEAR Matt Konkle – President, FIFTH GEAR. Making the Decision. Will outsourcing cost more than my in-house operations?. Cost Per Order

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Best practices in the search & selection of a 3pl Partner

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  1. Best practices in the search & selection of a 3pl Partner OPERATIONS SUMMIT 2013 Presenters: Rick Hall – VP, Client Success, FIFTH GEAR Matt Konkle – President, FIFTH GEAR

  2. Making the Decision

  3. Will outsourcing cost more than my in-house operations?

  4. Cost Per Order Cost Per Contact Inbound / Outbound Freight Seasonality Operational Performance Fixed vs. Variable Model Scalability

  5. Will I lose control of my business?

  6. Clear Scope of Services Key Performance Indicators Standard Operating Procedures Joint Business Planning Reporting & Analysis Issue Resolution

  7. Will my customers notice a difference?

  8. Brand Strategy Target Customer Product Offering Sales Channels Marketing Plan Promotions Personalization Packaging Customer Service Competition

  9. Focus your time on what will grow your business

  10. Selecting a 3PL Partner

  11. It’s about who you work with!

  12. Financially Stable Expertise Track Record Reference Clients Ability to Scale Talent and Labor Pool Right location(s) Technology and Support

  13. Make the right comparison

  14. Technology Enablement Freight Management Data & Reporting Business Analysis Business Services Product Personalization Kitting / Assembly Value-add Processing Leadership Team Trained Workforce Facilities (locations, infrastructure) Standard Operating Procedures Safety & Compliance Flexibility Client Service Customer Care

  15. Receiving Order Handling Pick & Pack Warehouse Storage Returns Account Management Clerical Support Technology Fees

  16. One size does not fit all.

  17. Making the Transition

  18. Communication is critical

  19. Executive Sponsor(s) Project Management Account Management Cross-Functional Dependencies Business Planning

  20. Set Expectations Customer Data Open Order Backlog Hours of Operation Returns & Exchanges Issue Resolution Appeasements

  21. Total SKUs Product Attributes Order Volumes Order Attributes Inventory Turnover Density / Velocity Service Level Agreements Seasonality

  22. Know the Facts and Benchmark

  23. Order Backlog Total SKUs Units Shipped Units Received Total Customers Total Vendors Open POs Order Demand Order Attributes

  24. Average order value Lines per order Units per order Shipments per order Backorder rate Returns rate Declines / Holds

  25. Minimize The Timeline

  26. Data Conversion Integrations System Setup & Testing Payment Processing Vendor Management Customer Management Contact Center Training Warehouse Training Inventory Transfer Inbound receipts Initial Receiving Order Backlog Returns

  27. Make ADJUSTMENTS

  28. Thank You! Matt Konkle – President mkonkle@infifthgear.com Rick Hall – VP, Client Success rhall@infifthgear.com

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