In the world of online retailing, attracting customers and making the sale is only half the battle. The other half is how quickly and accurately a company can get the order into the customers' hands and earn their repeat business. Today's customers are pressed for time and with buying online becoming increasingly convenient, online retailers often get only one chance to prove themselves. In the 21st century, the difference between good and great companies lies in execution of their supply chains and order fulfillment process. Whether to keep the order fulfillment function in-house or to outsource it to an order fulfillment company is certainly an important decision.

For many owners/managers, keeping order fulfillment operations in-house allows them to put in place their own procedures. Utilizing this information, management can more effectively weigh the advantages of outsourcing in the future. Having performed the function internally, management can better demand specific services and turnaround time guarantees from a third-party service provider.

Outsourcing allows business operators to step back from the "Do-it-Yourself" mindset and focus on their core competencies to grow the business. Effective order fulfillment operation requires capital investment in things like building, technology, equipment and labor. Even if you can afford the investment, making everything work right can be a daunting task. Order fulfillment is the execution of receiving, stocking, pick, pack and shipping operations in synch while meeting customer expectations that takes work and makes logistics "fun".

If that's not your idea of "fun," you're not alone. Companies large and small are trading in their tape guns and saving time and money by outsourcing. Besides avoiding upfront capital and overhead commitments, companies benefit from a pay-per-transaction model and match costs with revenues. Leading fulfillment companies offer the traditional pick and pack service, multi-carrier shipping worldwide, provide later pickups, negotiate larger shipping discounts and more experience. With the integration tools available today, the right service provider can provide real-time visibility regarding the status of each order.

While the third-party logistics industry has been growing at 15-20% each year, it's no wonder many companies have entered the business without having the necessary expertise. When looking to outsource, find a company with a solid management team and a commitment to doing things right the first time. You need a partner that takes the uncertainty out of outsourcing by proactively providing complete visibility to you and your customers.

Kashif Raza is the President of PA Depot, a third party fulfillment provider based in Allentown, PA. He appreciates your comments and feedback at kraza@padepot.com. To learn more about PA Depot's service offering, visit http://www.padepot.com.