PRODUCED BY: THE INS & OUTS OF OUTSOURCING “IT’S ALL ABOUT THE CUSTOMER EXPERIENCE” Intros History of Outsourcing Is Outsourcing Right For Your Company Q&A Downloadable RFP Bliss Case Study: o Finding the “Right” Partner o Measuring Ongoing Effectiveness of a Relationship o Staying Focused on the Customer Experience

PRODUCED BY: HISTORY OF OUTSOURCING STONE AGE… OR “PRE INTERNET” Limited to world’s largest corporations Discovered the “cost & focus” benefits Large consulting firms offered BPO Mid-sized companies missed out … and if you were a direct- to-consumer business, you had very few choices if you wanted to outsource fulfillment

PRODUCED BY: HISTORY OF OUTSOURCING It was the “wild, wild west” if you needed a fulfillment partner… lots of choices, not much quality!

PRODUCED BY: “we’re great” “Lowest freight costs” “We’re the best partners” “flexibility is our middle name” HISTORY OF OUTSOURCING TODAY More Choices Less Differentiation – everyone sounds the same Great Risk – easy to pick the wrong partner “Same day shipping” “we can do anything”

PRODUCED BY: THE 3 MOST IMPORTANT QUESTIONS Is outsourcing right for my company? How do I pick the RIGHT partner for the first time? How do I ensure a great customer experience post-launch?

PRODUCED BY: OUTSOURCING – IS IT THE RIGHT CHOICE? KEY FACTORS THAT MUST BE EXAMINED Return on Assets Opportunity Cost Customer Experience Systems Integration

PRODUCED BY: RETURN ON ASSETS Facility Commitment – how big? for how long? Technology Costs o WMS o WCS o Labor Management System Material Handling Equipment High Fixed Costs High Opportunity Costs $2,000,000 - $10,000,000 investment

PRODUCED BY: DOES IN-HOUSE MAKE ECONOMIC SENSE Justifying a $5,000,000 Investment Outsource Cost Per Order$ ,000 Orders Per Year$750,000 Rent Equipment Cost Per Year Labor vs.

PRODUCED BY: OPPORTUNITY COST CAN I AFFORD TO “IN-SOURCE” Capital is diverted from merchandising & marketing IT resources are diverted from priority initiatives Management team is focused on facilities, equipment and warehouse personnel

PRODUCED BY: THE CUSTOMER EXPERIENCE CAN A THIRD PARTY EXECUTE MY BRAND REQUIREMENTS? Same day shipping 99.9% accuracy Branded packaging Personalization Gift Cards Gift Wrapping & Messaging Sampling

PRODUCED BY: BLISS CASE STUDY BLISS BACKGROUND

PRODUCED BY: 21 spas around the world

PRODUCED BY: On Land By AirAt Sea British Airways Heathrow Terminal 5 and 3, JFK Terminal 7 The world’s largest spa company Spa Products  Spa Services  Spa Education

PRODUCED BY: biggest prestige stores in the world in 26 countries

PRODUCED BY: BLISS CASE STUDY WHY BLISS OUTSOURCES

PRODUCED BY: BLISS CASE STUDY WHY BLISS OUTSOURCES Capital to “build” warehouse facility questionable Opportunity cost/Management Focus Variable cost model vs. fixed costs

PRODUCED BY: BLISS CASE STUDY History of Bliss Operations What have the challenges been?

PRODUCED BY: BLISS CASE STUDY Picking The Right Partner What we learned from our past partnerships How did this help us pick the right partner in Dotcom? Staying on Track Focus on the Same Objectives Collaborate & be good business partners Consistently measure effectiveness of both teams Focus on the customer experience

PRODUCED BY: WHAT TO LOOK FOR IN A PARTNER Is it the right fit – am I too small or too large The people – can I work with these people Similar experience – track record with similar businesses Strong references – current & past clients How long is the lease on their facility Disaster recovery planning/generator

PRODUCED BY: WHAT TO LOOK FOR IN A PARTNER Ongoing communications Specific examples of flexibility – ask current & ex clients No hidden costs Limited hourly rates – willingness to develop unit pricing for all repeatable events No fixed costs Service levels during cyber week

PRODUCED BY: TOP 10 LIST WHAT YOU NEED IN A PARTNER Collaborative partner focused on your growth Brand-focused solutions Dedicated solution & dedicated teams Proven scalability Proven flexibility Same day shipping Real-time visibility to EVERYTHING Exception handling procedures Variable cost model Freight savings

PRODUCED BY: TALK IS CHEAP – MAKE THEM PROVE IT! FREE DOWNLOADABLE RFP FROM DOTCOM DISTRIBUTION

PRODUCED BY: Q&A