Posts Tagged ‘outsourcing’

Tips to Help You Select a Fulfillment Provider

Wednesday, May 25th, 2011

Your due diligence when considering a fulfillment house will involve researching, networking and following up on referrals. Carefully interview your select list of prospects and visit the facilities.

Here are a few things you will want to consider:

  1. Your contract – The Mailing and Fulfillment Service Association provides an industry model contract to which you can compare each proposed fulfillment contract.
  2. Storage fees – Be alert to per-pallet storage (warehousing) quotes. Some companies have a single SKU minimum per pallet, resulting in a minimum monthly charge for each SKU regardless of the actual number of items.
  3. Package sizes - Note the range of stock carton and Jiffy mailer sizes the fulfillment house offers. Use of excessively large envelope mailers or cartons can result in a substantial increase in postage or UPS/ FedEx charges.
  4. Avoiding split orders – The fulfillment house should be willing to use special cartons that you provide if its largest stock carton is inadequate. Splitting orders into smaller boxes because larger cartons are not available can lead to excessive shipping costs.
  5. Specialized cartons -You may need to use a special-size carton to avoid DIM surcharges. Even a fraction of an inch can make a substantial difference in your shipping costs if you ship low-density products in large cartons.
  6. Returned merchandise options – Be sure your fulfillment house gives you the choice of having your customers send returns directly to you or to the fulfillment vendor. With food and dietary supplements, for example, it costs less to have returned merchandise sent directly to you, since re-selling the item is not possible.
  7. Your shipping account – Some fulfillment vendors will use your shipping account and others prefer to use their own UPS, FedEx and USPS accounts. Rates and fees will be adjusted to accordingly. You might prefer to take advantage of reduced shipping fees offered by many fulfillment houses.
  8. Terms of service – Established fulfillment houses guarantee their work and will compensate you for any errors. Still, it’s a good practice to review the TOS for each potential vendor.

You can begin on a small scale by sending just a few SKUs in small quantities to sample the services of a potential fulfillment partner before entering a long-term contract.

How to Manage Security Elements When Outsourcing

Friday, May 13th, 2011

Keeping sensitive company data secure is a major concern for any business considering outsourcing. But these apprehensions do not need to keep you from enjoying the benefits of outsourcing your business processes. By taking several precautionary steps, you can ensure your data is secure, even when using an offshore vendor.

  1. Have a practical in-house security strategy that includes classification of data and a plan for handling various types of data, making sure you differentiate general information from sensitive data. Your security guidelines should include clearly stated principles and procedures that organization managers and IT professionals within your company agree on.
  2. Ensure that the vendors you select have a security policy that is equivalent to or even more stringent than your own. This may mean you will need to do some additional investigating to find out whether the provider’s security policies are strictly enforced.
  3. Ask about the type of deterrence technology the company has in place and the policies involved in its use. Does the vendor enforce these policies among all of its employees, including IT staff?
  4. Use application firewalls and database monitoring gateways to enforce your company’s usage policy and deter abuse of privilege. Some providers combine both functions, which is optimal. Also, choose a vendor who diligently supervises outbound emails and Internet usage to prevent unauthorized data disclosure.
  5. Perform regular application, database and network security checks to identify any potentially vulnerable areas.
  6. Ascertain whether the provider has instructed its staff regarding the proper handling and protection of sensitive data. Information leaks are not always intentional. Some instances of data disclosure occur when employees mishandle data; for example, leaving unencrypted files open and unattended for a time.
  7. Within your own company, keep abreast of the most recent developments in data security. Staying informed of the technology and processes involved in keeping your data secure will help you stay in control of your company’s security when outsourcing.

How to Select the Right Call Center Vendor for Your Business

Friday, May 6th, 2011


Signs It’s Time to Switch Vendors

Wednesday, April 20th, 2011


Onshore vs. Offshore Call Center: Which is Best for Your Business?

Monday, April 11th, 2011

Outsourcing call center operations has become a given for small to medium businesses and the only question remaining is whether to use an onshore or offshore call center. Below are a few factors to weigh when making your decision.

Onshore Call Centers

With an onshore call center, you eliminate the language barrier, as most onshore call center agents will be native English speakers.

A mainland call center will be easier to visit for hands-on training and management purposes.

Some customers may be more comfortable making credit card purchases via a call center that’s closer to home.

The main disadvantage of an onshore call center is the higher price. Be sure to compare, as pricing will vary. Some in the Midwestern United States offer lower rates than their East and West Coast counterparts.

While the issue is still debated, some businesses have chosen to stay with onshore call centers because they believe this leads to greater customer satisfaction and retention.

Offshore Call Centers

In a recent study by Duke University, 73 percent of companies surveyed said they turned to offshoring to save costs and promote company growth.

Offshore labor costs are much lower; your company can save up to 70 percent over onshore call center pricing.

Many offshore companies require their agents to have specific educational criteria, experience and skill levels.

Some offshore companies compensate for the time zone difference by employing workers around the clock, giving you and your customers access to 24/7 service.

One of the main disadvantages of offshoring is the physical distance; you don’t have as much opportunity for personal contact with agents and managers. However, many overseas call centers provide teleconferencing so you can be involved in the training process.

English is the second language for most representatives in overseas call centers, which can result in some communication difficulties. Search for a company that only employs reps whose English is clear and understandable.

Consider your company’s objectives. If your call center operations will not require diligent oversight, then an offshore call center might fit your needs adequately.

How to Develop Successful Vendor Relationships

Wednesday, April 6th, 2011

Successful Relationships


Communicating Effectively Before Outsourcing

Wednesday, March 23rd, 2011


Seven Tips for Successful Vendor Contract Negotiation

Thursday, February 24th, 2011

Once you’ve found a suitable business service vendor you will want to arrange a meeting to discuss details of your contract. Successfully negotiating a contract that benefits both parties requires a degree of skill. Here are a few tips to keep in mind as you enter the negotiation process:

  1. Before the actual meeting, obtain a copy of the vendor’s standard agreement, or a sample contract. A good time to do this is when requesting an initial quote from the vendor. This gives you time to completely review the terms of the contract and decide in advance areas in which you will want changes made in your favor.
  2. Enter negotiations with the right mindset, making sure your expectations are reasonable. The best contract is one that both parties feel good about.
  3. Be clear in your expectations. Include detailed time frames for specific milestones. It is in the vendor’s best interest to allow some leeway in their service agreement, so you might need to change some of the wording to ensure the work is completed within your expected time frame.
  4. Stand your ground in areas that are the most important to you but not as high on the vendor’s list of priorities. But be flexible regarding aspects of the contract that have a lower priority for you.
  5. Remember that it’s not all about price. By negotiating for the lowest price possible you could end up leaving your vendor looking for ways to cut corners in order to make a decent profit.
  6. Even if the vendor’s opening price is well within your range, don’t hurry to sign the contract. Ask for some adjustment in the price or other concession in your favor, so the vendor does not end up feeling their offer was too low.
  7. Don’t give into pressure to sign within a certain time. If the vendor warns that their prices will increase after a certain date, you can see if they will accept a letter of intent pending an acceptable agreement. Bear in mind, however, that this could limit your negotiating power by placing a time limit on the negotiation process. Ultimately, you have the choice to walk away if you are not satisfied with the terms you’re offered.



Five Reasons to Use National Vendors for Business Services

Tuesday, February 8th, 2011

When choosing a vendor for the business processes you plan to outsource, you might want to expand your list to include national vendors as well as local ones. Some business owners limit their choices by considering only locally based service providers, but adding national vendors to your list can offer a number of advantages, such as:

  1. Access to the best providers available. Business services can vary greatly, not only in terms of quality, but also in the variety of features and services offered. While there may be several B2B service providers in your area who offer excellent service, your local provider in any given category may not always be the best choice to meet your needs. Comparing services on a national level will give you a much broader selection and could result in finding the ideal provider for your company.
  2. Better price range. In some parts of the country, prices for local businesses services run higher than the national average. National vendors are often much more competitive in their pricing. Many of the larger companies have greater buying power when purchasing software, business supplies and other business services, and pass these savings on to their customers. Even if you do choose to go with a local vendor, researching the price range of national vendors will give you a good idea of what you should expect to spend for the type of business service you need.
  3. Greater scalability. After assessing your plans for future growth, you might find that some of your local business service providers are not as capable of handling your company’s increasing needs as a national vendor would be.
  4. Superior customer support. In some cases, national vendors come with a larger and more fully developed customer service and support center, with representatives available at all hours to help you resolve any issues immediately.
  5. Local branches. With many B2B services, having a local presence is not essential to providing excellent service to their customers. When, for example, was the last time you needed to visit your phone or Internet provider’s office in person? Nevertheless, many national vendors do have local offices in several cities across the country, so if being able to speak to someone face-to-face is important to you, choosing a national vendor with an office in your area can give you the best of both worlds.

How to Find Quality Website Designers for Your Business

Wednesday, February 2nd, 2011

Before deciding on hiring a website designer, review this video and learn why prospective web designers must have design portfolios that represent your aesthetic tastes.