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The Case for Outsourcing

Guest post by: Veronika Noize

Article Overview: As virtually every marketing manager will tell you, any marketing program is only as good as its implementation. Whether you're talking promotional or sales programs, effective implementation can make the difference between success and disaster.

The Case for Outsourcing

And just so we're on the same page, let me define "disaster":

Your program is a disaster when the 400 phones calls you expected to generate are actually 4,000 (or 40) calls.

Your program is a disaster when supplies don't show up on time, and you're left without display materials or promo items at a trade show or sampling event.

Your program is a disaster when your sweepstakes is discovered to be illegal in two states and out of control in cyberspace because your servers aren't prepared to handle the extra traffic.

Your program is a disaster when your sales materials don't make it to retailers in time for your big advertised sale.

Your program is a disaster when your direct mail piece is delivered after the money-saving coupon it carries expires.

In short, your program is a disaster when you lose potential revenue, credibility in the marketplace, and the trust of your customers. Make no mistake about it: Disasters are expensive, especially when you factor in the wasted time, damaged reputations, and the costs of rectifying mistakes.

So how do you indemnify your program against disaster? Simple. You outsource.

Wait just a minute, you say. Outsourcing costs money! Well, yes it does. But it costs far less to do it right the first time than to have to deal with a disaster after the fact. And outsourcing is often far less expensive than it might appear.

For example, when you outsource your fulfillment functions, you gain immediate access to world-class capabilities that are probably not available to you in-house. Not only are there tangible resources such as extra space for storage and production, extra hands to perform the tasks, and specialized equipment and software, but there are intangibles as well, such as experience and expertise. No matter how innovative your program may be, chances are that something very much like it has already been done at a fulfillment house, and the staff can advise you on where and how to cut costs, as well as the potential pitfalls of various tactical decisions. All of these resources are available to you on an as needed or per-project basis when you outsource, with no obligation after your program concludes.

When you outsource, you can focus your attention on your strategy, your tactics, and your budget without having to worry about the details of implementation, because your fulfillment provider handles that for you.

When you outsource, you save your valuable time, money and resources for what's important. You do not have to recruit, hire, train, supervise or justify any temporary personnel, nor do you have to invest in new technologies that may have very limited use at your company beyond your immediate need.

When you outsource, you run the show, because you are engaged in a vendor-client relationship, rather than jostling for limited resources within your company.

When you outsource, you control the costs. Your fulfillment provider has the expertise to work with you to come up with solutions that meet your needs as well as your budget. Not only can you prioritize your services based on your budget and your needs, you will be able to isolate and define the true costs of your program.

And finally, when you outsource, you mitigate disaster. Fulfillment providers stake their reputations and business on getting things done on time, so that's one less thing for you to worry about. And fulfillment providers already have the resources to scale up (or down), depending on the variable requirements of your program. So if your program suddenly catches the imagination of your target market and goes wild, then you can rest assured that the system won't implode under the weight of success. Conversely, if your program fails to find its audience (it can happen!), then you don't have to worry about over-investing in resources because when you outsource, you only pay for what you use (not what you wish you were using!).

While outsourcing may not be appropriate for every project, it can be your salvation when you're on a tight budget and under deadline pressures. And in this economy, who isn't trying to make the most of limited resources? As Francis R. Doyle, the former president of Fulfillment Specialties, Inc. says, "When the going gets tough, the tough start outsourcing."

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Article Tags: costs money, credibility, cyberspace, direct mail, disaster, display materials, fulfillment, intangibles, mail piece, outsourcing costs, promo items, reputations, sales materials, sampling event, saving coupon, specialized equipment, tangible resources, trade show, two states, world class capabilities



Related Forum Posts
Re: What is your biggest challenge? Today? - Outsourcing and time management, but I'm continually making progress.
Re: Should a start-up outsource early? - Hello and welcome to the forum! I agree with Ideasuniversity. Outsourcing is a good way to leverage your time, provided you keep within your budget! Best wishes, David H
Re: Using PR in the Franchise Business - Outsourcing in any business can be a good thing, provided you can afford it and do your due diligence on the company that you outsource to. It is very easy to be taken for a ride if you don't know what you are doing. MichelleJ
Re: How to Manage Your Emails - Do you have any filters you can turn on? Or maybe you've already tried that. Otherwise, I have a folder that I shuffle the questionable ones over to and call it the "Just in Case" folder. I take a quick look at them when I get a chance, just to make sure they're truly junk. I NEVER open ones that I don't recognize any more since there are so many viruses being put out there. (I don't get people that do those things......but that's a whole other topic.) Anyway, that's what I do, but there has to be a better way out there somewhere. Who can help us?
Re: Job market slump is a guy thing - Kevin, I've noticed the same thing. In fact, my own corporate experience started in reception. That's how I ended up managing reception in addition to my primary position as Telecommunications Administrator for over 700 locations. I was offered many incredible opportunities that wouldn't even have been an option if I hadn't started the way I did. Case in point!


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