APS Fulfillment, Inc. (www.APSFulfillment.com), one of the nation’s leading cost-effective fulfillment and integrated direct mail marketing companies, is weighing in on how important it is for businesses to understand and compare the costs of keeping fulfillment operations in-house and outsourcing operations to a fulfillment company.
“Deciding whether or not to keep fulfillment operations in-house or to outsource warehousing and fulfillment to a third party is a big decision. Is it better to coordinate the flow of materials in-house, or to trust the brand’s reputation with an outside company?” says Charles Aultman, president of APS Fulfillment, Inc. “For many companies, the decision comes down to cost savings. In our experience, most companies we talk to fail to factor in all the costs of doing everything in-house.”
Aultman explains that when it comes to warehousing and fulfillment, businesses are faced with a number of complex demands. In order to be competitive, firms need to coordinate the flow of material and information as smoothly as possible, and to be successful, they also need to understand all of the costs.
“When it comes to deciding which route to take, brands need to take into consideration the more common in-house costs. Labor costs include warehouse staff for receiving, picking and packing, and shipping as well as taxes and benefits. There’s also rent, utility, and insurance.” he adds. “Supply costs also need to be factored into the monthly expense, including cartons and packaging materials. And then there are the shipping expenses.”
Aultman notes that there are a lot more factors to think about when it comes to deciding whether to keep fulfillment operations in-house or to outsource them. Some of the expenses businesses fail to take under advisement include customer service (support staff and training), management (labor expenses to manage the warehouse and shipping), equipment costs (forklift, scanners, scales, etc.), and software costs (warehouse management software, shipping software, etc.).
“Some common outsourcing costs include the setup fee, receiving, storage, and shipping. That said, outsourcing is truly beneficial in that it frees up time and allows businesses to concentrate on its core business,” he observes. “Outsourcing to an experienced warehousing and fulfillment company like APS Fulfillment, Inc, can also mean better labor balancing as a result of having the trained staff in-place to tackle peak shipping seasons.”
“Outsourcing can also improve supply chain metrics with on-time delivery, fill rates, and inventory while reducing costs and improving efficiencies,” Aultman concludes. “Regardless of whether a company deals with mass-market consumer goods, luxury goods, or temperature-controlled, sensitive products, APS Fulfillment, Inc.’s scaleable supply chain management solutions allow companies to meet the seen and unseen market challenges.”
APS Fulfillment, Inc. is one of the United States’ leading cost-effective fulfillment and integrated direct mail marketing companies, offering affordable and real-time fulfillment services to small, medium, and large companies. Its state-of-the-art technology provides turnkey solutions for high-volume perfect-match mailings, personalized direct mail, snap-pak mailers, postcards, and triple-tabbed booklets. More information on APS Fulfillment, Inc. is available by visiting the firm’s web site at www.APSFulfillment.com or by calling 954-582-7450.