Checklist for Outsourcing
Retailers trying to decide whether to continue managing their own delivery operations or farm it out to an external company, need to consider several things. Here’s a checklist we recommended to make the exercise a bit easier.
1. Analyze volume to determine if there’s enough to outsource. If you operate a boutique furnitrue store and only require a few deliveries a week it may not be in your best economical interest to outsource.
2. Consider expansion plans. Are you looking at new markets or a new distribution center? Important to figure out how you’ll fund the expansion. Outsourcing could be a way to free up capital.
3. Identify companies that you’d feel comfortable working with. Find someone that is willing to build on your cultural strengths and that you can work with through challenges.
4. Research the history of the delivery company, as well as the future of the company. Mergers and acquisitions happen frequently. Make sure you know about long-term plans.
5. Ensure the delivery company is up to date on the latest regulations regarding sourcing teams, fleets, etc. Do they really doing background checks and play by the rules? Make sure they’re not cutting corners.
6. Know what your delivery metrics are. The more you track the better you will be when it comes time to evaluate options. How many incomplete deliveries are there? How many delivery miles are logged within a certain period? What are the average installation times? How many deliveries were missed because a customer wasn’t home?