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Posts Tagged ‘publisher outsourcing’

Pick, Pack and Ship Services Help Publishers Reduce Fulfillment Costs

Due to the nature of the publishing industry, publishers have multiple layers of costs associated with fulfillment (the process of picking, packing and shipping books). In its simplest form, fulfillment is the act of getting books out the warehouse door and delivered to customers in a fast, efficient and economical manner. Any additional costs incurred in fulfillment means a reduced bottom line profit for the publishing house.

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Employee driven reasons for publishers to outsource.

Over the past several weeks I have been discussing the six (6) major reasons that publishers, large and small, benefit from outsourcing their order fulfillment services to a third party vendor such as Ware-Pak.

Last week I discussed the cost-driven reasons and today, I am discussing the sixth and final topic – employee driven reasons. As promised, the combination of all of these is now available on our website on our new “White Papers” page. If you’d like to explore the white papers that are available there, please click here.

What are the Employee Driven Reasons Publishers Outsource?

Give employees a stronger career path. You should consider whether or not most of your warehouse employees are promotable to the publishing side of the businesses. If there is no possibility of promotion, what types of employees can you attract for the warehouse operation?

Increase commitment and energy to non-core areas. As a warehousing company, Ware-Pak focuses solely on warehousing. Each day, our job is to figure out how to provide publishers with the highest levels of service at the most economical cost.

If you have additional questions, or are interested in receiving this white paper by email, please feel free to contact me directly. I can be reached at (708) 587-4116 or kshay@ware-pak.com

Ware-Pak Reports November Performance

The number of units shipped for the month of November was very strong, when compared to the previous year. We believe the main reason for the increase is due to a timing issue with Christmas orders for the smaller publisher. In October, Ware-Pak experienced a shortfall due to Christmas orders being pushed into November by the smaller retailers. When we analyze the October shortfall and the November increase, they average out to a normal season.

One interesting thing we did notice during the month of November was that even with return orders increasing, the number of books returned was down by almost 36%. My impression of this is that our clients have done a much better job of managing inventories in the retail market.

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

Orders: Units:
Outbound 17,568 Outbound 702,467
Inbound 2,479 Inbound 568,664
Returns 2,359 Returns 60,165
Total 22,406 Total 1,331,296

Speed and Accuracy Statistics:
Accuracy = 99.97%
Same Day Shipping = 92.1%
Shipped within 24 hours = 98.6%
Returns Processed Same Day = 87.7%

Publishers: Why Outsource?

In a previous entry you may have read about the organizational reasons that publishers, both large and small, choose to outsource order fulfillment services.

By focusing on what they do best, a publishing house – regardless of its size – can enhance the overall effectiveness of their organization. Allowing an expert, such as Ware-Pak, to handle order fulfillment, the organization can benefit from increased customer service offerings, customer satisfaction and shareholder value.

I mentioned that I would be discussing additional reasons why publishers benefit from outsourcing fulfillment services. In today’s entry I would like to share the improvement-driven reasons for a publisher to outsource warehousing and fulfillment.

Here are the major questions to consider:

  1. As a publisher, how do you improve your operational performance?
  2. Do you have a warehousing industry viewpoint for operational expectations?
  3. Do you regularly send people for warehousing efficiency training?
  4. Is the organization more interested in developing great content or in fulfillment service excellence?

By outsourcing fulfillment services, you can obtain expertise, skills and technologies that your company does not already have. Many publishers do not have the volume of activity to recruit top talent inside the warehouse. When capital budgets are limited, it is often difficult to determine where to spend your technology dollars. You may need to sacrifice the ability to invest in a state of the art warehouse management system.

Within an organization, different divisions often compete for limited resources and management time. This can decrease the amount of time your organization has to dedicate to offering best in class warehousing services. Another challenge publishers may face due to limited resources is whether or not to hire a key executive to manage the warehouse because there is uncertainty of whether or not those salary dollars could have a higher impact on the business if they were allocated differently.

Outsourcing fulfillment services can improve risk management for the company. Part of risk management is diversification. When your warehouse facility is in a different location, you are decreasing your risk for fire and other acts of God. You are also increasing other factors, such as pools for selection of employees and access to the market.

Outsourcing can also help inspire innovative ideas. It can help you find answers to tough questions: Does your organization continually improve its warehousing function? Is your mission to be the best warehousing company available? Do your managers wake up in the middle of the night thinking about how they can improve your warehouse?

A relationship with a superior third party fulfillment service partner will improve your credibility and your image. We all want the ability to do business with successful partners. When you associate yourself with an industry leader, such as Ware-Pak, you are positioning your company as a quality business.

The combination of these “Why Outsource” blog entries will be available as a white paper shortly. If you are interested in receiving this white paper, please feel free to contact me directly. I can be reached at (708) 587-4116 or kshay@ware-pak.com.

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