Overall Financial Benefits of Outsourcing

• Frees up capital resources
  
  
• Shares risk with your outsourcing provider
  
  
• Allows expansion without raising investment dollars in capital facilities, software, or equipment
  
  
• Leverages the fulfillment provider's capital
  
  
• Frees up cash for use in higher return areas
  
  
• Improves profitability
  
  
• Increases salability
  • Absence of redundant assets
  • Bigger pool of buyers

• Increases valuation
  • Flexibility
  • Outsourcing contract
  • Balance Sheet
    • Cash improvement
    • Lower fixed assets
    • Lower overall debt
    • Improved equity
    • Higher return on capital investment
  • P&L Statement
    • Lower fulfillment costs due to:
      Economies of Scale
      Efficiencies of operations
    • Lower M.I.S. costs
    • Better G&A
    • Better Depreciation

Overall Organizational Benefits of Outsourcing

• Improves your business focus
  
  
• You gain access to expertise
  
  
• Frees up your management resources
  
  
• Provides objective performance criteria
  
  
• Allows for better reporting
  
  
• You can take advantage of a flexible structure
  
  
• Your emphasis is on the core functions of creating, manufacturing, and marketing your brand
  
  
• Provides accountability of front-end decisions
  
  
• Jobs performed by American workers