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How to Further Scale Your Business with a Fulfillment Process

How to Further Scale Your Business with a Fulfillment Process

According to Ron Carucci’s Harvard Business Review article, "U.S. organizations with $10 million–$1 billion in revenue make up the fourth largest global economy in the world, with $3.8 trillion in private sector GDP. Over 200,000 midcap businesses collectively employ 34% of the U.S. workforce." Carucci works with CEOs transforming companies as they move from midsize to large companies. The Navalent founder said that most mid-cap companies, moving into the large company arena confuse scaling with growth. In order to improve efficiency and eliminate disturbances from backend procedures, companies should consider handing their fulfillment process to a 3rd party.

Midsize companies often lose momentum when they aren’t prepared to handle growth

Midsize businesses often reach a “stall point” when they become a $100 million company with the infrastructure of a $30 million company. When companies grow, they are adding revenue at the same pace they are adding resources. Scaling adds revenue at a much greater rate than cost. Pressure to manage all of this additional income, without the inner workings in place to do so, results in “leaders reacting to mere symptoms of poorly managed growth, such as widespread conflict or a sense of organizational mayhem.”

CEOs need to switch from working in their companies to working on their companies

In order to secure scalable growth for your midsize company, Carucci suggests that leaders faced with this sort of organizational upheaval should make moves to stop working in their companies and start working on their companies. Working on your company entails developing strategies that optimize your move to the next level. Developing a real market identity, understanding your competitive positioning in the current market and outsourcing the fulfillment process to automate and standardize your business will all lead to better organizational health as your company expands into the major leagues.

Outsourcing the fulfillment process proving effective in scaling midsize companies

Studies are showing that one of the most effective ways to put your marketing, production, sales and product development at the forefront of your business efforts is to consider outsourcing your fulfillment processes and inventory management systems. For a myriad of reasons, working with a 3rd party logistics company takes many of the distractions out of the day-to-day picture, so companies can actually carve out the time required to focus on the things that will help them grow exponentially. Some of the reasons that outsourcing product fulfillment processes and inventory management work so well include:

  • Saving money and time on labor and freeing up your creative resources

    “Essentially the fulfillment process is where a company’s most crucial deliverable exists; getting their product to their customers,” said Anthony Watson, on Lumi.com, “yet the process itself adds little value towards the growth of the business as a whole.” Spreading talent thin with packing and shipping details, costs companies more in labor overhead. Additionally, your talent’s creative potential is diminished by fulfillment distractions.

  • Saving money and time on warehouse leases, installing expensive fulfillment equipment and maintenance

    Fulfillment companies are already up and running, outfitted with all of the state-of-the-art machinery and technology needed to run a warehouse. Leasing and maintaining storage space, training and managing an in-house staff can be costly, not to mention staying current with the latest technology and equipment maintenance. Reputable third-party logistics personnel will be dedicated to the fulfillment process and experienced in finding ways to make your customized process more cost and time efficient.

  • Cost savings on shipping

    Cost-effective on-time delivery is essential to your continued growth. Shipping personnel are skilled and experienced in developing distribution plans with an eye on freight regulations and the multitude of delivery options that can save your company the cost of expedited shipping costs incurred when something goes awry in the in-house shipping process.

  • Inventory management

    When scaling your midsize business to efficiently grow in an organized manner, spot on accuracy and transparency in inventory management are essential. Effective communication with your fulfillment company means you can view your inventory numbers in real time, track your products and get alerts when your inventory dips below predetermined levels. Your multi-channel marketing channels, as well as your physical location sales, can be managed better from a central location, as well.

  • Customer service

    In the highly-competitive e-commerce market, where consumers vigorously voice their opinions, customer experience counts for a large majority of midsize companies’ growth. Building brand loyalty entails customer service accessibility for your clientele. With so many companies going totally digital and consumers shopping at all times of the day, consumers appreciate the ability to speak to a knowledgeable and helpful customer service rep. Fulfillment companies provide dedicated customer service reps for your customers.

What to look for in an established fulfillment company

  • Open avenues of communication
  • Location in terms of shipping lines, airports, Interstate highways and railways
  • Facility size and space
  • Warehouse management technology capabilities
  • Six Sigma, Continuous Improvement and Kanban certifications
  • Flexibility for added staff during peak seasons and reduced staff during off-seasons
  • OSHA standards maintenance

Phase V, a one-of-a-kind fulfillment company, streamlines your fulfillment

Many small to medium-sized companies go the Fulfillment by Amazon route to reach more customers. Amazon and some third-party logistics companies try to fit small to medium-sized companies into their one-size-fits-all fulfillment programs, requiring minimums with not much flexibility in terms of scaling your business for seasonal fluctuations in sales.

On the other hand, Phase V Fulfillment Company takes the time to get to know your business and find out your vision and goals in order to custom fit a fulfillment process to your mid-size business’ growth and vision. Phase V partners with you to redefine your midsize company as you grow your marketing, sales, and product development components into a larger, sustainable entity that can go the distance! Contact us today to discuss moving your company in the direction of growth.