5 Mistakes to Avoid When Choosing a Fulfillment Company

It is important to perform thorough due diligence prior to selecting a business-to-business partner for your company. This fact remains true no matter the size of your company or whether you’re a start-up or a well-established brand. This crucial step is paramount when it comes to having a third party handle the logistics of your company’s products.

From our almost 20 years of experience, we’ve discovered the top 5 mistakes companies make when selecting a provider for their warehouse and fulfillment requirements.

Here are some major pitfalls to avoid when making this crucial decision for your business.

  1. Selecting a company based on their volume versus their experience with your product type or industry. If your product requires special handling or attention you may not fare well in a fulfillment center that processes hundreds or thousands of orders per day. Instead, select a company that has proven results in handling your specific requirements. Ask for case studies and references to ensure you’re making the right choice.
  2. Selecting a company solely on the basis of proximity to where your business is located.  While you think it might offer a degree of comfort to know that your product is nearby if you need to touch it, there are many other factors to consider.  Finding a company that is in good proximity to your customers might be a more valuable consideration.  Getting your product to your customer in the fastest, most cost-effective way will add more to your bottom line than your ability to stop by on occasion to pick up a sample. Selecting a fulfillment company that is centrally located with proximity to your clients will not only get your products to your customers faster, but also reduce shipping rates.
  3. Selecting a company based solely on cost. Be sure you understand all the costs involved in the warehousing and fulfillment process. What may be included with one company’s price possibly is not covered in others. Ask detailed questions to uncover all the costs from each company you consider so that you can compare “apples to apples” in your final analysis.
  4. Don’t oversell yourself as a prospective customer.  Be as up front and forthcoming with information with fulfillment companies that you are considering as you want them to be a true partner.  It’s a two way street best travelled side by side. Share any of your concerns and your overall business goals to ensure the understanding is mutual and the company can deliver.
  5. Selecting the first company you interview because you’re in a hurry to get your products to the market. Think about the entire customer experience, from you to your end customer that receives your product. Be sure you can trust your fulfillment company to maintain your brand integrity and that they care to take the extra effort for your customers’ satisfaction.  If you’re not sure of the fulfillment centers abilities to deliver outstanding customer service, trust your instincts and keep looking.

When making your decisions regarding your fulfillment company, keep these 5 crucial points top of mind, and you’ll be on your way to making all of your small business dreams of success a reality.

With Almost 20 years of experience, Innovative Business Services (IBS) Your Business Fulfillment Experts has been driven by our strong values of integrity, customer service and commitment to our clients. Our services include warehouse and fulfillment, inventory and order management, packing and picking, kit assembly, direct to consumer (DTC) fulfillment, special project and event fulfillment and ecommerce fulfillment. Through our responsiveness and understanding our clients’ goals and objectives, we’ve had the privilege of serving clients such as Verizon, Gruppo Campari, The Austin Ad Group, Club Corp, Maya Road and many others. IBS has proven tailored solutions to fit your business, no matter the size. Contact IBS for a free assessment or quote for your business.

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