Outsourcing an order taking service improves selling time as well as delivery and stocking time. It will also help in increasing sales opportunities through an effective private label function. Choosing to outsource your private label requires the commitment of all parties involved to coordinate closely the order taking system.
The most demanding retailer would require a highly dynamic order-taking capability which includes a private label strategy. Over the years, private labels emanated to become a major business strategy. This is because, in reality, retailers are increasingly outsourcing their manufacturing needs for private label brands as it is often more cost-effective than the manufacturers.
Retailers that want to benefit quickly from their private label initiative need to consider outsourcing the integration of their private label programs to a supplier. Outsourcing means expansion of service by introducing 24-hour order taking into the supply chain. These outsourcing providers have staff located in the right regions, employ people that speak the local language, and have built out a technology infrastructure that makes 24-hour order taking service possible. Because of these factors, outsourcing providers can enable a mature B2B program more quickly than an in-house strategy.
A strong private label of a retailer retains its customers by virtue of its quality and price. Research has proved that consumers are very price and quality conscious and private labels of retailers offer both. Efficient but subtle communication of a brand’s outsourced manufacturers and those of the private labels should be the same so there can be no difference in quality. The objective is to manage the process to ensure overall product safety, legality and quality.
Since private labels are designed to meet the needs of manufacturers, outsourcing keeps a direct relationship with the client intact. A private label should be completely anonymous so that customers are unaware that the work is outsourced. This works well in retaining the quality aspects of a private label especially when it is in its introductory and growth stages of the product life cycle.
Retailers then achieve an increased share of consumer wallets by offering great quality at a much lesser price and at the same time obtaining customer loyalty in a competitive retail environment. Aside from ensuring quality, a manufacturer can also focus on other areas such as marketing or sales.
The main outsourcing criteria is, apparently, price competitiveness. Other selection criteria in outsourcing a supplier are:
• Reduction in costs (including conversion costs, logistics, overhead)
• Greater customer care and response
• Ability to provide products within the given time frame
• Other capabilities to take part in such as customer service
• Ability to scale production
• Flexibility, speed, and ease of business
• Clear communication
• Experience in other industries
• Customized designs and styles different from competitors
• Ability to use EDI (Electronic Data Interchange)
• Ethical sourcing compliance
• Exclusivity of production
• Data security features
• Capability to manage own supply chain especially when purchasing raw materials
• Access to innovative and best-in-class services
With a private label order taking call center, you get your brand name and your own management core values. See what Magellan Solutions can do for you by getting in touch with our business development team.