Q: I need a local fulfillment operation in Canada to effectively grow my business there. How would I proceed to develop an external fulfillment operation in Canada?
A: First and foremost, you have to develop a business model for the designated selling area. This is a three- to five-year strategic plan comprised of historical data and a projected forecast. A few pieces to the model are:
-> Three to five years projected sales as orders, detailed to a weekly/daily (where appropriate) plan
-> Average units and lines per order shipped
-> Seasonal or peak volume increases as orders shipped, average lines per order, average units per line, average cartons per order
-> Method of shipment and percentage of volume by type for purchase orders (small parcel, LTL, T/L, container)
-> Preferred method(s) of shipping by percent of total volume
-> Average weight per order shipped
Second, identify where your projected concentration of sales will be and determine the most advantageous physical location within the new selling area for a fulfillment operation for your projected business model. Site selection is critical to managing...
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