Boundless Network's CEO Jason Black recently wrote a post decrying the profitability of fulfillment entitled Death of a Salesman. In it, Jason depicts fulfillment business as anything but profitable and outlines a diagram on just how bleak fulfillment business can be.
There was only one problem: it was wrong. Since Jason was formerly with Hotlink, I assume he knows better than to make such oversimplified statements about an (admittedly) complex business, but I prefer to give him the benefit of the doubt since I admire Boundless and the ingenious business model he has created.
Here is where Jason's post conveys some element of truth: Fulfillment can be unprofitable; for the uninitiated or misinformed, it can be downright dangerous. Some of the points Jason makes would be granted by anyone in the fulfillment business: the possibility of marginalized orders, salespeople with unrealistic expectations, smaller transactions that can (if not handled properly) eat you alive, diminishing order averages - they are all a part of the challenge of fulfillment. But with large, complex programs of any kind, the devil is in the details. Broad-brushed reactions cannot qualify or disqualify a program, only meticulous probing and investigation of each opportunity can do this.
Where Jason is wrong is the oversimplification: Bob doesn't take $300 orders from "Betty Buyer", these are easily processed through the fulfillment program/eCommerce tool. Bob doesn't touch these orders; other people do, but in a controlled, efficient manner, one that reduces the order processing time from 45 minutes to 5 minutes. Jason and I would agree: If Bob, the professional promotional products consultant, is handling 15 unit pen orders, not only is Bob not a real savvy rep, the company he works for has a terribly inefficient system and will, most likely, be out of business. Bob should be spending his time developing other programs, utilizing his skill to create other fulfillment opportunities. In our business model, we provide ample support to the rep who then can turn to develop other business and it becomes one of many revenue streams the salesperson has working for them. In Jason's example, the case should not be made that fulfillment is a "marginally/if-at-all profitable" business, the case should be made that some distributors should stay far away from fulfillment if they intend to conduct business-as-usual, for then, it would, indeed, be "marginally/if-at-all profitable".
But what caused me to respond to the Boundless post was not merely corrective, it was a need to redeem the reputation of fulfillment programs for the client. The most glaring error in the post was one of omission, the absence of what the client wants - not the salesperson, not the business manager, but the customer. The demand for fulfillment is a response to an ever-increasing demand for controlled branded materials delivered as efficiently as possible to a broad network of associates. Salespeople don't create the demand for Company Stores, only customers do. Fulfillment is a response to the market. Branded products have evolved into such an important tool for companies that they are now looking at ways to streamline the creation and delivery of these items. They want simplified ways to manage these resources which includes greater accessibility, faster turn-times and more variable options within a controlled framework. This is occuring in virtually every industry involving branded products, from printed materials to promotional products to signage. Fulfillment might be an "f" word (as Jason mentioned) but it is hardly "the dark side" from the client's perspective because it fulfills such a need in their business.
Some of us in the fulfillment business have been at this a long time (back in the day we used to call Company Stores, "catalog programs"). We've earned our stripes the hard way and in doing so, have found how we can make this model work. We still wrestle with overambitious tendencies and turn down more opportunities than we win, but we've learned how to succeed with this model. We've built structures that serve both us and our clients well. Fulfillment programs take work and a lot of intricate, calculated thought. They are a far cry from the average drop-ship promotional product order. Yet, they exist as a response to a very loud demand in the market. They also serve as a unique value proposition - the market is cluttered with drop-ship promotional product sales reps, fulfillment is one value added proposition that enlarges the playing field by removing those that cannot from the equation. I applaud Boundless for staying away from this business, for focusing on what drives their economic engine. Deciding to stay out of this business will make both of us happier (for I think Boundless a formidable foe), but to discredit fulfillment as unprofitable is carrying the argument too far. Fulfillment, with its myriad of details, can be vexing, but can also be incredibly rewarding. This is a certainty for the client, (as it has been for years in this business), and it is a rich possibility for sales reps and the companies who employ them.
