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Handling the handover


Why planning and good


communications are so important to maintaining continuity of great customer service when changing your fulfilment partner


Ecommerce is 24/7. Your website is always on and your customers enjoy and expect the convenience that it offers. Many companies choose to outsource their warehousing and fulfilment and for the majority, this relationship delivers a great customer experience, allowing the retailer to develop the business without the diversion of managing facilities and staff. But what happens if the retailer decides


a change is required, that a new fulfilment partner is the only way of ensuring the business will continue to grow? When the transition can involve, amongst


other things, the transfer of vast quantities of product from one fulfilment house to another, the risks are high. Alongside this there can also be some complex legal, HR and IT issues that need to be navigated. Such a move is filled with potential pitfalls


and many companies are wary of the disruption and damage that this may cause, not just to their business performance but to their reputation and customer loyalty if the transition process does not go smoothly. A poorly planned handover can quickly


result in a backlog of supply to customers who, in this social-media age, will vent their frustration on Facebook, Twitter and other channels. They are increasingly unlikely to settle for an apology, demanding refunds, compensation and, ultimately, deserting your brand. However, the transition process can


be very smooth and in most cases it is a question of giving yourself as much time as possible to complete the process and ensure that you have a plan in place that deals with all the issues and eventualities. The key to it all is good planning and good communications between all parties. There is a great deal of detail to manage and there must be no margin for error as this could potentially disrupt supply to the consumer. What preemptive steps can you take to


manage a seamless transfer and ensure good communications throughout the process? For any company planning a change I


By Stuart Gray 2


would recommend that you look at four key issues:


Catalogue e-business | Direct Commerce | www.catalog-biz.com


• The terms of your existing contract • Managing the relationships between your firm, the incumbent fulfilment company and the incoming one


• The development of a plan of action • The transfer of systems, stock, sometimes the transfer of people, and then going live.


Check your contract Quite often with contracts the devil is in the


detail and you need to understand at the outset what your contract says you can and cannot do. The first thing to identify is the level of


notice period that you need to provide your existing supplier. That period may be long or short depending on the terms agreed when you signed the contract. Whatever that timescale is will determine the whole process of change. If you feel that the timescale is too long then speak to the incumbent and look to shorten the term by informal agreement. You may well find that having given notice, your supplier will be just as keen as you to go his separate way. Examine your contract for exit costs that


you may not have anticipated. As you are unlikely to change fulfilment house on a regular basis there will be a large number of “one-off” costs associated with a move. Who is liable for them—is it you, the incumbent or should they be picked up by the new supplier? Examples of costs associated with a


transfer include the counting of all stock, putting it all on pallets, shipping it to your new supplier—which could amount to hundreds of truck loads of deliveries, redirecting of post, and installing new telephone lines. Some of this will be expensive, some not so, but by smart planning you can reduce the financial pain. Who is responsible for TUPE (Transfer of


Undertaking Protection of Employment)? The new supplier has to make the offer to employ those people at the outgoing warehouse that worked on the business. More often than not, the staff will not take up this option as this would involve relocating to other parts of


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