Financial Benefits
- Frees up capital resources
- Shares risk with your outsourcing provider
- Allows expansion without raising investment dollars in capital facilities, software, or equipment
- Leverages the fulfillment provider's capital
- Frees up cash for use in higher return areas
- Improves profitability
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Increases salability
- Absence of redundant assets
- Bigger pool of buyers
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Increases valuation
- Flexibility
- Outsourcing contract
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Balance Sheet
- Cash improvement
- Lower fixed assets
- Lower overall debt
- Improved equity
- Higher return on capital investment
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Profit & Loss Statement
- Lower fulfillment costs due to: Economies of Scale & Efficiencies of operations
- Lower M.I.S. costs
- Better G&A
- Better Depreciation
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Organizational Benefits
- Improves your business focus
- You gain access to expertise
- Frees up your management resources
- Provides objective performance criteria
- Allows for better reporting
- You can take advantage of a flexible structure
- Your emphasis is on the core functions of creating, manufacturing, and marketing your brand
- Provides accountability of front-end decisions
- Jobs performed by American workers
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