There is a point in the lifetime of any business when fulfilling orders in-house becomes an added burden and expense. At that point companies should consider professional contract assembly. Not only can an assembly service handle much of the order preparation and delivery, but it will free up the business to concentrate on building additional revenue streams.

The 411 on Assembly Service
All assembly services are not created equal. Choosing the right partner increases return on investment (ROI) and optimizes future sales. According to eCommerce Trends, a few of the key features of a contract assembly organization that may mean the difference with respect to profitability include:

• Reception. Acquisition of goods from suppliers at the lowest possible costs
• Inventory. Proper inventory is key to ROI--too little product may lose customers, too much drives costs up
• Warehouse. Safe-keeping of inventory in secure warehouses is similar to business insurance
• Shipping. A good contract assembly service can save a business thousands of dollars in accurate shipping
• Returns and Inquiries. Handling customer inquiries is paramount to building brand and customer loyalty
• Data and Reporting. Keeping comprehensive data on purchasing activity provides key customer profiles
• Online Ordering. An assembly service may offer you the opportunity to host your storefront on their web servers

Contract Assembly Can Build a Brand
Outside of the business web site, contract assembly services serve as the lone customer touch point. Brands live and die by these complex operations, placing increased responsibility on assemblers. If done right, contract assembly not only fuels profits, it also creates new opportunities for growth. According to The World Bank, the following fulfillment characteristics work together in building and expanding a brand:

• Changing Industry Environment. Recognizing regulations and mandates for seamless compliance
• Increased Market Competition. Keeping costs low to preserve profit integrity for the distributor
• Supply Chain Integration. Merging with current business operations to reduce errors
• Market Growth and Development. Being responsive to new profit opportunities wherever they may be

Prospecting a Potential Contract Assembly Service
Real Profit Solutions reports that 44 percent of online retailers lose money on shipping and handling. That being said, the bottom-line approach to evaluating a potential contract assembly outfit is a logical way to act. Enter the negotiations with concrete examples in mind and find out the exact cost to be incurred for volume sales amount. Added services and pristine facilities mean nothing if the cost of doing business is prohibitive.

Sitting in on representative calls or watching order fulfillment activity in person is another way to get a feel for how an assembly service represents a particular brand. Websites and brochures can be deceiving, as many businesses have found out the hard way.

Sources
eCommerce Trends
Real Profit Solutions
The World Bank (PDF)