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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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slide1

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
slide2

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

slide3

HISTORY OF OUTSOURCING

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

slide4

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

slide5

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?

slide6

OUTSOURCING – IS IT THE RIGHT CHOICE?

KEY FACTORS THAT MUST BE EXAMINED

Return on Assets

Opportunity Cost

Customer Experience

Systems Integration

slide7

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

slide8

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.

slide9

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

slide10

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
slide11

BLISS CASE STUDY

BLISS BACKGROUND

slide13

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

slide15

BLISS CASE STUDY

WHY BLISS OUTSOURCES

slide16

BLISS CASE STUDY

WHY BLISS OUTSOURCES

Capital to “build” warehouse facility questionable

Opportunity cost/Management Focus

Variable cost model vs. fixed costs

slide17

BLISS CASE STUDY

History of Bliss Operations

What have the challenges been?

slide18

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
slide19

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

slide20

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

slide21

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
slide22

TALK IS CHEAP – MAKE THEM PROVE IT!

FREE DOWNLOADABLE RFP

FROM

DOTCOM DISTRIBUTION

www.dotcomdistribution.com