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.