3PF DOES NOT EQUAL 3PL. Director of Fulfillment Services Mailing & Fulfillment Service Association. Presented By: Tom Quinn
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1 3PF DOES NOT EQUAL 3PL Presented By: Tom Quinn Director of Fulfillment Services Mailing & Fulfillment Service Association
2 Discussion Outline DEFINE 3PF TYPES OF FULFILLMENT 3PF TARGET MARKET APPLICATIONS COMPLETED COMPETITION BENCHMARK SURVEY RESULTS
3 3PF Definition The receipt, storage, assembly and shipment of product and/or data for another company.
4 Types of Fulfillment Literature Product Database Management Rebate & Coupon Redemption Premiums Returns Special Events & Conference Point of Purchase Franchise Contract Packaging Kitting & Assembly Ondemand Printing
5 Organization Chart CEO PRODUCTION MARKETING SALES PERSONNEL ADMINISTRATION ASSEMBLY PRODUCT MANAGER FIELD SALES IT DISTRIBUTION STAFF MARKETING ADMIN FINANCE MARKETING COMM. MANAGER
6 Marketing Support Services Literature Fulfillment Lead Inquiry Fulfillment Trade Show Support Premium Fulfillment Seminar Support
7 Literature Fulfillment
8 Benefits to a Corporation Benefits A Full Service Company Can Offer A Corporation Dedicated System Cost Control Database and Logistical Expertise Single Source Reporting Flexibility
9 Lead Inquiry Fulfillment
10 PROJECT FULFILLMENT DISTRIBUTION FULFILLMENT PROGRAM INVENTORY Line Items / Job INFINITE Duration to Manage PROJECT PROJECT 1+ YEAR System Requirements BASIC BASIC ADVANCED VERSIONS TO BUILD INFINITE SHIPMENT METHOD USPS UPS FedEx, Airborne, etc LTL Truckload MANAGE SHIP DEPOSIT PROJECT PROJECT MONTHLY ORDER RECEIPT PO Mail Fax Spreadsheet File Download Web Telephone SALES TYPE TRANSACTION TRANSACTION ESTABLISHMENT SALES CYCLE TIME 1 WEEK 3 MONTHS 1 WEEK 3 MONTHS 3 MONTHS 2 YEARS
11 Fulfillment Competitors Printers Mailers 3PF Specialty Product 3PL Print x Bindery x x Variable Print x x x Mailing Services x x x Warehousing x x x x x x Fulfillment x x x x x x Database Management x x x Web Hosting & Design x x x Credit Card & Cashiering x x x Telemarketing x x x Contract Packaging x x Transportation x x x x x Logistics x
12 MFSA Benchmark Survey Results Fulfillment Operation Measurements MFSA s first operational benchmarks study Key measures for your fulfillment operation Identify what these measures mean to you MFSA BENCHMARK SURVEY RESULTS
13 Critical Success Factors for Fulfillment Operations Receiving Cycle Time (Dock to stock) Definition: Elapsed time of arrival of material thru receiving process, assignment of location entry into inventory system and available for use (or if new item, delivery of sample and receiver to PM [not entered in inventory system]) Calculation: Elapsed time for all receivers for the time period is tabulated. Total elapsed time divided by total receivers = cycle time Median cycle time: 7.1 hours Average cycle time: 11.9 hours
14 Critical Success Factors for Fulfillment Operations Receiving Accuracy Definition: The percentage of SKUs received correctly Calculations: Total SKUs rec d during time period are tabulated 1658 Errors detected are tabulated 36 SKU s received correctly /1658 = 97.8% receiving accuracy Median receiving accuracy: 98.9% Average receiving accuracy: 97.39
15 Critical Success Factors for Fulfillment Operations Inventory Accuracy Definition: The comparison of inventory system balances to actual count. Usually accomplished during cycle counting, but can also be result of complete physical inventory Calculations: Totals from all cycle counts for the period Date 10/1 10/15 10/31 Totals Count Inv. Sys. Balance Pct % % % % Median inventory accuracy: 98.9% Average inventory acduracy:97.3%
16 Critical Success Factors for Fulfillment Operations Shipping Accuracy Definition: Percentage of orders shipped error free. Proper service levels used to meet needby dates or as spec d by client. Packages labeled correctly. Complete and correct addresses Calculations: Total orders shipped 627 Total errors detected 16 Total orders shipped correctly /627 = 97.4% shipping accuracy Median shipping accuracy: 99.2% Average shipping accuracy: 98.85
17 Critical Success Factors for Fulfillment Operations Total Revenue Per Square Foot Definition: Total revenue for co. per income statement divided by total facility space Incl. operations, warehouse, admin, etc. Calculation: Total sq. ft is 50,000 Total rev. for period is $2,000,000 $2,000,000/50,000 = $40 per sq. ft. Median total rev. per sq. ft.: $34.17 Average total rev. per sq. ft.: $74.11
18 Critical Success Factors for Fulfillment Operations Revenue per Employee Definition: Total revenue for co. per income statement divided by avg. fulltime equivalent. Includes all personnel Calculation: Avg. FTE for period = 41.7 Revenue for period = $2,000,000 $2,000,000/41.7 = $47,962 per FTE Median revenue per employee: $58,252 Average revenue per employee: $74,718
19 QUESTION AND ANSWER SESSION
20 Contact Information Tom Quinn
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