TAGG Logistics

For many of our clients a “necessary evil” of their business is providing parts to their customers.  From computer and network related equipment to hardware and components of ready-to-assembly furniture, TAGG serves as the outsourced fulfillment provider to a variety of clients who supply product parts for their customers.

One such client sells ready-to-assembly TV stands and media cabinets through a variety of big box retailers.  In order to provide a high level of customer service, they have decided to make replacement parts and components available to their customers for a period of up to 5 years.  That means they have a large number of items that need to be stored and managed for a long period of time and shipped to customers quickly when needed….all of which contributes no direct profit to the bottom line.  When I asked the owner why he decided to outsource the parts business to a third party he replied, “Why not outsource the parts fulfillment to TAGG, let you guys completely take care of things so I can go about doing what I am good at, designing and selling more product?”  He also added “our approach to parts was an afterthought, it was a distraction and because it is not core to our business, it wasn’t getting done well.  A fulfillment center would better handle the process and free up valuable resources within our organization.”

TAGG designed a system that completely takes the burden off of our client.  Customer requests are taken at a call center or over the web, those orders are imported into our warehouse management system and parts are shipped to our client’s customers.  Our client has visibility over the entire process.  We even help minimize cost by disassembling customer returns and replenishing parts stock with the components.  What our client views as a necessary evil, we see as a core competency and a valuable service TAGG provides.

So you made the sale and are now going to market your product through the big box retailers and really push volumes.  Problem is, they require all products to be shipped from a distribution center using EDI.

EDI (Electronic Data Interchange) is a business trade platform on which buyers and sellers exchange critical documents electronically, without paperwork.  EDI has been evolving for more than a quarter of a century, but up until recently was limited to larger enterprises, primarily due to the excessive startup and operational costs. Now, with new technologies available, TAGG Logistics, in partnership with technology provider eZCom, has been able to offer more cost-effective EDI solutions, giving smaller suppliers the ability to participate.

eZCom’s Lingo™ is like an e-commerce passport:  it supplies an easy interface designed around your trading needs. Your focus should be on selling, billing, and shipping – on reaching new horizons, new markets, and new customers. Don’t get bogged down with distribution, routing guides and the technicalities of EDI.  Leave it to the experts!

“It’s Apples to Oranges to Bananas…”

by Tod Yazdi

So you have decided to outsource your fulfillment and distribution-maybe you didn’t want to buy a warehouse, purchase forklifts, manage additional personnel and invest in costly IT.  You have done your homework and decided on the best location-maybe you sell nationwide and the Midwest offered a centralized location within your customer base.  You have even gone out and talked with several different fulfillment centers.

You have narrowed it down to three, and now it’s time to get down to business.  What is the cost?  You have three proposals that you lay on the conference room table to compare to each other, but it’s like comparing apples to oranges to bananas.  How can you compare bids when all have different pricing variables?  In one bid there is a labeling fee, in another you have to ship on their account – which is marked up, and the third packaging is not included in the price.  The variables can be endless and the terms can be confusing.

When Scott Ohlgren, owner of BrainToniq, decided to outsource his fulfillment and distribution, he found it nearly impossible to determine the cost of doing business with a fulfillment center, much less to compare and contrast providers.  BrainToniq is the world’s first organic, botanical-based, non-caffeinated think drink specifically designed for those who need more mental focus and clarity.  The product is sold to consumers and retailers nationwide through both its website and stores like Whole Foods.  “I personally spoke with nine or ten fulfillment centers across the country.  I was able to quickly determine the best location for my distribution point and got a comfort for the service level of several providers, but comparing pricing was a whole other challenge.”
We suggest to Scott and others in his situation to prepare a Fulfillment Cost Model.  Simply put, give your fulfillment center data on past orders or create a hypothetical group of orders and have them determine the total cost.  Do the same for inbound receipts and what you would store at their facility and tell them not to worry about their pricing terms, translate it into how you actually do business.

To view the entire article, including a Fulfiment Cost Model, click here

“I looked for pricing that was straight forward with no hidden fees and costs that I could not quantify.”  According to Scott, “it was important for the fulfillment providers to translate their costs into the way I do business.  Then I could compare pricing and understand what the total cost of my fulfillment for each was.  In the end, I chose the provider with competitive pricing that was also easy to understand.  I didn’t want a bill that wouldn’t make sense to me or was different than what I was expecting.”

Creating a Fulfillment Cost Model serves two purposes.  First, it helps you to take bids that are different and translate them into common pricing.  This allows you to easily compare and contrast pricing from different providers.  Second, once you select a service provider and your first bill comes, it will hopefully eliminate any surprises!

Obviously pricing should not be everything.  You need to choose a logistics firm that is a good partner, has a high level of service and a commitment to making your business a success.  Then, they have to provide a good value.  Sometimes you need to take pricing into your own hands – and put it in your own terms – to be able to compare bids….or else it’s apples, to oranges to bananas!

We were lucky to be featured at the FIME 2008, presenting a seminar on supply chain management in the healthcare industry.  The FIME International Medical Trade Fair and Congress is held annually at the Miami Beach convention Center.  Over 10,000 industry professionals from more than 100 countries visited FIME’s 110,000 sq. ft. of exhibits during the three-day expo making FIME the largest event in the industry.

TAGG presented issues and practices that are evolving in the fulfillment and distribution of healthcare products.  Hundreds of new and innovative medical products for surgical, imaging, diagnostic, laboratory, orthopedic, rehabilitative and home health care uses were debuted at FIME 2008.  What all these products had in common was the need for a fast and efficient way to traverse the supply chain and get to market.  The seminar featured challenges in distribution that the industry faces and several real life examples from our healthcare products customers.  For more information on our medical products fulfillment click here

From: Feng Shui Fusion [mailto:info@fengshuifusion.com]
Sent: Wednesday, July 16, 2008 12:04 AM
To: ‘Tod Yazdi | TAGG Logistics’
Subject: What we tell our friends……

Fast Shipping, Top Notch Service, Attention to Detail, Immaculate Warehouse and a Great Communication
TAGG Logistics makes us look good, thank you.

We love TAGG Logistics! We could not be happier with them. From Day 1 they have worked with our company to customize their service to our needs.

They provide top-notch service. I tell everyone about them, they are invaluable to us. They are highly responsive to our daily order processing requirements.

The quality of business that we provide is greatly improved and accelerated by the outstanding management and service delivered by them

Why not leave it to the experts??

Amanda, Feng Shui Fusion   www.fengshuifusion.com

At TAGG Logistics, we know that the only way to be successful is to make our customers successful. That is why we listen to our customers and design and implement a logistics solution that meets their needs. Whether it is order fulfillment, inventory management and distribution services or contract packaging, kitting and assembly, we have the systems and expertise to be your outsourced logistics provider.

Why Should You Outsource to TAGG Logistics?

By outsourcing to a logistics expert like TAGG Logistics, you can:

• Invest more time and money in your core competency
• Decrease your operating costs
• Decrease your staffing costs
• Maintain flexibility within your organization and more effectively manage future demands
• Improve customer satisfaction rates

What is your expertise?  Are you in business to provide logistics solutions, distribution services, order fulfillment or packaging?  We are!

Struggling to Handle your Logistics In-House?

If you haven’t outsourced some or all of your logistics, such as order fulfillment, your business is dedicating a portion of its work force, attention and capital away from your core expertise.  By outsourcing to a logistics expert, your products get stored, distributed and fulfilled more efficiently and you have fewer headaches and more time and resources to devote to the money-making aspect of your business.

TAGG Logistics partners with customers to design and implement the best possible logistics solutions. We believe the best way to meet our customers’ needs it to work with them as a partner providing outsourced logistics services.

The TAGG Logistics Commitment to our Customers

At TAGG Logistics, we respect the trust our customers place in our ability to successfully design and execute a critical component of their business. We take this responsibility seriously and always strive to deliver results that exceed expectations.

Complete Supply Chain Capabilities

Whether it is container receiving and unloading, packaging and shipping services or product fulfillment services, TAGG Logistics has the know how and expertise to meet our customers’ logistic needs and seamlessly integrate into their supply chain.

Flexibility

We pride ourselves on our creativity and flexibility to customize a solution to every challenge and problem our customers face.

Technology

We manage our customers’ inventory and distribution with state-of-the-art warehouse management system (WMS) software to provide pertinent and precise information, in real-time.

Would your organization benefit from a more cost effective outsourced order fulfillment partnership?  Contact TAGG Logistics for a free comprehensive review of your logistics needs.

TAGG Logistics – Your source for outsourced third party logistics services including inventory management and distribution, order fulfillment and contract packaging, kitting & assembly.

For all size businesses that are looking for a Fulfillment/Distribution Company – TAGG Logistics (www.tagglogistics.com) is the right choice for you. TAGG is a leading fulfillment/distribution service company providing product fulfillment, distribution and related services. Unlike other fulfillment companies, TAGG contains explicitly detailed descriptions of the systems, services, and staffing provision as well as a detailed set of rules and regulations that are strictly adhered to in order to benefit their customers. They offer solutions for both Business-to-Business and Business-to-Consumer clients, including Pick and Pack, Product Fulfillment and Distribution, Pack-out / Assembly, Order Management, Inventory Management, Logistics and Returns Processing services. I can assure you that TAGG Logistics is the right company for you! What are you waiting for? Check out TAGG Logistics today!