An assembly service handles a wide range of fulfillment activities for business-to-business (B2B), business-to-consumer (B2C) or internal distribution. Here are five key areas to consider when evaluating potential assembly services:
1. Developing a Strong RFP
Connie Hill of The Fulfillment Center explains the critical nature of creating a strong Request for Proposal (RFP). An RFP is a document that outlines the needs of the company and probes assembly services on how they might fill those needs. She shrewdly points out that the sheer number of service providers dictates the purpose of a savvy RFP.
Included in the request are the operating requirements and expectations numbered in order of importance. Once several requests have been received from competing providers, the company then uses them to compare and contrast. RFPs can be created from scratch or downloaded from an online resource.
2. Evaluating by Committee
Unless the small business is a one-person operation, its always a smart idea to form a committee to evaluate potential assembly services. A variety of perspectives and opinions ensures that nothing is missed. Companies can count on devils advocates to pose challenging points of view and use those to work out uncertainties.
According to Hill, RFP by committee means allowing each member to create a request based on what they believe to be the strongest urgencies. Combine the various requests and talk through sticking points. An assembly service should meet the consensus view with respect to various delivery and reporting expectations.
3. Checking the Vendors Reputation
Greg LaFleur of J.M. Field Marketing emphasizes the reputation of the assembly service as a component of evaluation. Strong vendors leave a wake of satisfied customers and heavy-hitting clients behind them. Those that dont may either be new to the game--or just not very good at delivering on promises.
Sources to check include industry association memberships the vendor maintains, the view of the Better Business Bureau and various government publications. Businesses need to keep in mind that the reputation of the assembly service is only one aspect of the formula--albeit a critical one.
4. Analyzing Metric Data
Any savvy business owner knows and appreciates the value of performance metrics. This holds true with respect to assembly services as well. LaFleur favors weighing such data as turn times, response times, and packing error. Again, data isnt the only factor to consider, but it can give insight into what the business can expect.
Also, its important to check if the assembly service data can be merged and reported through the existing company interface. This tends to be much more convenient than waiting for PDF reports at the established intervals.
5. Putting Stock in Technology
According to ECN Asia Mag, next-generation technologies streamline the assembly process and improve accuracy exponentially. That being said, the presence and utilization of technology should be a primary consideration. Ask for a demonstration of the receiving and distribution software tools a potential assembly service employs.
As with the metric data, assembly technologies that can be merged with existing on-site databases simplifies the process and improves communication between the business and the vendor considerably.
Sources
ECN Asia Mag
The Fulfillment Center Inc. (PDF)
J.M. Field Marketing