When Outsourcing Fulfillment, It Pays to Demand Performance, Expert Says (Internet Retailer)

Marc Tanowitz is the sole resource for this brief article about best practices for retailers seeking to outsource their fulfillment operations.

"Finding the right outsourcing partner for either all or part of a retailer’s fulfillment needs can make all the difference in an online retailer’s success, but retailers should hold fulfillment providers to minimum performance levels in areas like order-to-delivery times, says Marc Tanowitz, a principal with consultants Pace Harmon. “It’s easy to find outsourced fulfillment that’s cheap and ineffective or that’s effective and expensive, but it’s hard to find something that’s both inexpensive and effective,” he says. Nonetheless, retailers can find good and fairly priced outsourced fulfillment arrangements, he adds, if they do their homework. The key is for a retailer to identify its needs, such as improving customer service and order-to-delivery times, reviewing the capabilities of each potential fulfillment provider, then signing a contract with agreed-upon performance levels."

Internet Retailer