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Posts Tagged ‘Outsourcing’

Ware-Pak Reports December Performance

During the month of December, the number of units shipped was much weaker than the previous year – down by 50%. The number of fulfillment orders were also down, but as a percentage, fulfillment orders were down only 9%. Units shipped in 2008 were unusually high due to a client destroying a large volume of slow moving stock. The 9% reduction in order fulfillment is more reflective of normal business activity. Activities in the Ware-Pak warehouse were enhanced by a special project of assembling 500,000 CD sets. Given the economic conditions, we were satisfied with the overall results.

Below are Ware-Pak’s December Outsourcing Performance Numbers:

Orders: Units:
Outbound 18,760 Outbound 492,331
Inbound 1,592 Inbound 580,995
Returns 2,246 Returns 83,694
Total 22,598 Total 1,157,020

Speed and Accuracy Statistics:
Accuracy = 99.995%
Same Day Shipping = 92.4%
Shipped within 24 hours = 98.2%
Returns Processed Same Day = 88.1%

Ware-Pak Reports October Performance

Activity during the month of October felt lighter than normal Ware-Pak. However, now that the month is complete, we actually saw an increase in outbound volume of 14% over the prior year. The majority of Christmas orders that were fulfilled were for the large box chains, such as Levy and Anderson News. We still have not seen the Christmas orders for the smaller retailers, and hope to see those in the first part of November. The net effect of these delayed orders is an 18% reduction in orders while the number of units per order substantially increased. We expect overall performance to be equal to or slightly better than the prior year.

Below are Ware-Pak’s October Outsourcing Performance Numbers:

Orders: Units:
Outbound 20,146 Outbound 900,658
Inbound 1,699 Inbound 1,181,734
Returns 2,205 Returns 51,156
Total 24,482 Total 2,133,548

Speed and Accuracy Statistics:
Accuracy = 99.96%
Same Day Shipping = 91.9%
Shipped within 24 hours = 98.7%
Returns Processed Same Day = 88%

Ware-Pak Reports Strong April Performance

Ware-Pak recorded strong results in April. This marks the fourth month in a row – giving us a year-to-date increase of 34%.  Our primary activity for order fulfillment showed a modest gain of 6% over the prior year.

My main concern for the publishing industry is the amount of returns processed. Ware-Pak has experienced unusually high activity all year in this category and in April, we posted an increase of 236% over the prior year.

Special projects soared to meet the demands of an expanding educational market and realized an increase of 180% over the prior year. Ware-Pak’s call center activity has shown substantial gain with the addition of 3 new call center clients.

Below are Ware-Pak’s April Outsourcing Performance Numbers:

Orders: Units:
Outbound 24,050 Outbound 565,423
Inbound 1,457 Inbound 1,150,370
Returns 3,368 Returns 327,847
Total 28,875 Total 2,043,640

Speed and Accuracy Statistics:
Accuracy = 99.95%
Same Day Shipping = 93%
Shipped within 24 hours = 99%
Returns Processed Same Day = 92%

Eliminating Fixed Costs Key To Surviving Economic Downturn

Publishers feeling the pinch are looking for ways to cut back on costs without sacrificing quality service. Many have turned to outsourcing warehousing and fulfillment services as a way to eliminate fixed costs and increase supply chain efficiency.

Outsourcing warehousing services allows you to accomplish two main goals:

  1. Redirect your focus on your core business
  2. Convert a fixed cost into a variable cost

Today, I am focusing on the second goal – converting a fixed cost into an expense that can fluctuate with sales.

For publishers who handle their own warehousing, one of the hardest (if not impossible) things to do is to cut expenses by an amount equal to their decrease in revenue. This is because the biggest expenses are fixed expenses:

  • Rent – Landlords don’t care whether your building is running at 80% or 60% of capacity. They still want 100% of their rent.
  • Utilities, taxes, depreciation and building maintenance costs remain fixed whether the warehouse is at 50% or 60% of capacity.
  • Labor costs in the warehouse are very difficult to cut, especially if you already have a small staff.

By outsourcing, these items become variable costs, not fixed expenses, AND the responsibility for managing them is shifted to your fulfillment center. If orders drop by 10%, the charges for picking will be reduced by that amount. When you look at your inventory and decide to remainder a slow moving item, your storage costs (rent) will fall by each pallet you remove from the facility. In other words, your expense will fluctuate in a manner that corresponds to your level of activity.

Another advantage offered by Ware-Pak – Virtual Warehouse technology – helps publishers eliminate excess stock. Customers view their inventory items and orders being processed in real time. They see which items need to be replenished and which are fully stocked – eliminating excess.

Finally, because warehousing is our only business, outsourcing to Ware-Pak means more same-day shipments. Our performance records show that 90% of all files received by 5:30 PM CST will ship the same day – 98% within 24 hours.

Ware-Pak Reports Strong March Performance

Ware-Pak is proud to have some good news to report for the month of March. During the month, Ware-Pak experienced higher order counts, and the volume of books through the warehouse also increased.

Below are Ware-Pak’s March Outsourcing Performance Numbers:

Orders: Units:
Outbound 26,174 Outbound 922,076
Inbound 1,658 Inbound 1,222,864
Returns 3,362 Returns 184,137
Total 31,194 Total 2,329,077

Speed and Accuracy Statistics:
Accuracy = 99.92%
Same Day Shipping = 92.6%
Shipped within 24 hours = 99%
Returns Processed Same Day = 93%

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Ware-Pak, LLC
2427 Bond Street
University Park, IL 60484
phone (708) 534-2600
Web: www.ware-pak.com