How do I compare a fulfilment proposal with my own operations?
First, map out your own side completely: space, hours, materials, carrier contracts, and software. Only then can you make a fair comparison between the two complete pictures.
A fulfilment proposal almost always looks expensive because you are comparing it to your current in-house operation, the costs of which don't show up on an invoice. A fair comparison therefore doesn't start with the proposal, but with getting a complete picture of your own costs.
What to include on your side
- rent and utilities for the space where your inventory is stored
- hours spent by yourself and your employees processing orders
- packaging materials, labels and printers
- your own carrier contracts and the associated rates
- software for inventory, orders and shipping labels
- the time spent handling exceptions and customer queries
That final cost is almost always forgotten and is often the most expensive. A missing parcel or an incorrectly shipped item takes more time to resolve than processing ten orders.
Calculate using your own figures
Take a real period from your administration rather than an average. How many orders were there, how many items per order, where were they shipped to? Compare those numbers against the proposal so that you are comparing a total amount rather than two separate rates.
Then look at a period when you were busier. It is specifically during peak times that you can see whether your own operation can keep up and what an outsourced operation would cost at that moment.
Factor in your growth as well
Je vergelijkt niet alleen de situatie van vandaag. Zet erbij wat je eigen operatie zou vragen bij twee keer zoveel orders: meer ruimte, meer uren, misschien een extra medewerker en een investering in de inrichting. Bij uitbesteden komt die stap niet in één keer, maar loopt hij mee in de staffel.
Pay attention to non-financial factors too
Part of the value is not reflected in the rate. Think of the hours freed up for purchasing and marketing, not having to work late on a busy evening, and having the breathing room to grow without first having to find a larger warehouse.
On the other hand, you are handing over daily control. Therefore, when reviewing a proposal, ask what you can view yourself and how quickly you can reach someone if something goes wrong.
Ask for a complete picture
Vraag ten slotte of alle posten in het voorstel staan: inslag, opslag, opstarten, retouren, bijzondere handelingen en een eventuele minimale afname. Een voorstel waarin die punten expliciet worden benoemd, is makkelijker te vergelijken dan een voorstel met één bedrag per pakket.
Ready to experience the difference with Cenfil Fulfilment?
Request a custom proposal based on your order profile. You will hear back within one business day about the possibilities and rates that suit your operation.
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