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THE INS & OUTS OF OUTSOURCING “IT’S ALL ABOUT THE CUSTOMER EXPERIENCE”

THE INS & OUTS OF OUTSOURCING “IT’S ALL ABOUT THE CUSTOMER EXPERIENCE”. Intros History of Outsourcing Is Outsourcing Right For Your Company Q&A Downloadable RFP. Bliss Case Study: Finding the “Right” Partner Measuring Ongoing Effectiveness of a Relationship

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THE INS & OUTS OF OUTSOURCING “IT’S ALL ABOUT THE CUSTOMER EXPERIENCE”

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  1. THE INS & OUTS OF OUTSOURCING “IT’S ALL ABOUT THE CUSTOMER EXPERIENCE” • Intros • History of Outsourcing • Is Outsourcing Right For Your Company • Q&A • Downloadable RFP • Bliss Case Study: • Finding the “Right” Partner • Measuring Ongoing Effectiveness of a Relationship • Staying Focused on the Customer Experience

  2. HISTORY OF OUTSOURCING STONE AGE… OR “PRE INTERNET” • Limited to world’s largest corporations • Discovered the “cost & focus” benefits • Large consulting firms offered BPO • Mid-sized companies missed out … and if you were a direct-to-consumer business, you had very few choices if you wanted to outsource fulfillment

  3. HISTORY OF OUTSOURCING It was the “wild, wild west” if you needed a fulfillment partner… lots of choices, not much quality!

  4. HISTORY OF OUTSOURCING TODAY “We’re the best partners” “Same day shipping” “we’re great” “Lowest freight costs” “we can do anything” “flexibility is our middle name” More Choices Less Differentiation – everyone sounds the same Great Risk – easy to pick the wrong partner

  5. THE 3 MOST IMPORTANT QUESTIONS Is outsourcing right for my company? How do I pick the RIGHT partner for the first time? How do I ensure a great customer experience post-launch?

  6. OUTSOURCING – IS IT THE RIGHT CHOICE? KEY FACTORS THAT MUST BE EXAMINED Return on Assets Opportunity Cost Customer Experience Systems Integration

  7. RETURN ON ASSETS • Facility Commitment – how big? for how long? • Technology Costs • WMS • WCS • Labor Management System • Material Handling Equipment • High Fixed Costs • High Opportunity Costs $2,000,000 - $10,000,000investment

  8. DOES IN-HOUSE MAKE ECONOMIC SENSE Justifying a $5,000,000 Investment • Outsource Cost Per Order $5.00 • 150,000 Orders Per Year $750,000 • Rent • Equipment Cost Per Year • Labor vs.

  9. OPPORTUNITY COST CAN I AFFORD TO “IN-SOURCE” Capital is diverted from merchandising & marketing IT resources are diverted from priority initiatives Management team is focused on facilities, equipment and warehouse personnel

  10. THE CUSTOMER EXPERIENCE CAN A THIRD PARTY EXECUTE MY BRAND REQUIREMENTS? • Same day shipping • 99.9% accuracy • Branded packaging • Personalization • Gift Cards • Gift Wrapping & Messaging • Sampling

  11. BLISS CASE STUDY BLISS BACKGROUND

  12. 21 spas around the world

  13. The world’s largest spa company Spa Products  Spa Services  Spa Education On Land At Sea By Air British Airways Heathrow Terminal 5 and 3, JFK Terminal 7

  14. biggest prestige stores in the world in 26 countries

  15. BLISS CASE STUDY WHY BLISS OUTSOURCES

  16. BLISS CASE STUDY WHY BLISS OUTSOURCES Capital to “build” warehouse facility questionable Opportunity cost/Management Focus Variable cost model vs. fixed costs

  17. BLISS CASE STUDY History of Bliss Operations What have the challenges been?

  18. BLISS CASE STUDY • Picking The Right Partner • What we learned from our past partnerships • How did this help us pick the right partner in Dotcom? • Staying on Track • Focus on the Same Objectives • Collaborate & be good business partners • Consistently measure effectiveness of both teams • Focus on the customer experience

  19. WHAT TO LOOK FOR IN A PARTNER Is it the right fit – am I too small or too large The people – can I work with these people Similar experience – track record with similar businesses Strong references – current & past clients How long is the lease on their facility Disaster recovery planning/generator

  20. WHAT TO LOOK FOR IN A PARTNER Ongoing communications Specific examples of flexibility – ask current & ex clients No hidden costs Limited hourly rates – willingness to develop unit pricing for all repeatable events No fixed costs Service levels during cyber week

  21. TOP 10 LIST WHAT YOU NEED IN A PARTNER • Collaborative partner focused on your growth • Brand-focused solutions • Dedicated solution & dedicated teams • Proven scalability • Proven flexibility • Same day shipping • Real-time visibility to EVERYTHING • Exception handling procedures • Variable cost model • Freight savings

  22. TALK IS CHEAP – MAKE THEM PROVE IT! FREE DOWNLOADABLE RFP FROM DOTCOM DISTRIBUTION www.dotcomdistribution.com

  23. Q&A

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