Thought Leadership

8 Advantages of Outsourcing in the Manufacturing & Retail Industries

When many people hear about outsourcing in manufacturing or retail, it relates to the core production tasks, such as having another company create your goods or sell them for you. However, companies in these industries also outsource in another way—through business process outsourcing (BPO).

With BPO, companies partner with a firm that specializes in back-office processes, like DATAMARK.

Retail & Manufacturing Outsourcing Examples

Retail and manufacturing BPO typically surrounds repetitive back-office business tasks. There are many examples of outsourcing for manufacturing retail companies. A few are highlighted below.

Why Companies Outsource Manufacturing & Retail Back-Office Tasks

Now that you’ve seen the plethora of commonly outsourced business processes, we’ll dig into a few of the advantages of BPO.

1. Your Customers Can Speak Their Preferred Language

Back in 2014, Google predicted the Hispanic market would boom within the U.S. They noted massive hikes in searches for common Spanish-language question words, gave a nod to the already $1.5 trillion market, and noted the Hispanic population would account for approximately 30 percent of the population by the middle of 2050. What’s more, around 13 percent of the American population already speaks Spanish as a first language, according to Babbel.

Savvy retailers and manufacturing companies are actively catching this wave, but not all realize that in reaching this demographic, you must also back it up with top-notch service in the preferred language of your customers. Those outsourcing retail and manufacturing contact centers often benefit largely by retaining a bilingual workforce.

At DATAMARK, we have a contact center just across the border from our El Paso, Texas headquarters, with highly educated agents who speak fluent English and Spanish. This means they can provide the very best service and act as an extension of the company they’re serving without the language and cultural barriers sometimes seen in other outsourcing firms.

2. You Can Provide Multichannel Service Effortlessly

We recently explored the Future of Contact Centers in the COVID-19 Era. One central point is that people were already trending toward multichannel communications before the pandemic. Certain demographics have been early adaptors, with younger generations leaning more toward email, text message, and AI. In fact, the Google report mentioned earlier noted the Hispanic market is big on adopting new tech too. Yet, the pandemic created a significant shift with those who have been resistant to using channels beyond the phone—many groups are now far more comfortable with tech and gravitate toward alternate channels even when they have a choice these days.

When you outsource manufacturing and retail service—everything from customer service lines through loyalty programs, warranties, sales, order management support, and more—you can provide customers with the multichannel experience they want without handling any of the logistics. Best of all, moving to a multichannel service model can help eliminate bottlenecks and speed up service times, so customer satisfaction soars.

3. Your Team Will Be More Efficient

Retail and manufacturing BPO providers are efficiency experts. At DATAMARK, we look at your business processes from the ground up and evaluate how they’re working for you now and what areas you’re struggling in, then rework each one until it’s a streamlined process with no bottlenecks or redundant tasks.

This naturally reduces the time involved in handling those specific tasks, but the company’s efficiencies spread throughout the company. For example, if your digital mailroom is working at optimal speeds, everyone who receives mail gets a boost. That might mean your accounting department gets checks sooner, the customer service team can respond to inquires quicker, or the sales team can close more deals because their pipeline moves faster. Because everything in an organization is interconnected, the possibilities are endless.

4. You Can Focus on Your Products More

A lot of what occurs in the business offices of retail and manufacturing companies can seem a bit like a thorn in the organization’s side. They aren’t what your company is known for or does best, but they have to get done as a part of doing business. What often ends up happening is that those processes and tasks don’t get the attention they deserve, and things start to spiral out of control. There are huge backlogs of work, delays in delivery, and costly mistakes being made. All this ends up costing the company even more.

By outsourcing, you free your organization from these repetitive tasks and pass them on to someone specializing in them. In turn, your company can focus more time, energy, and resources on your products.

5. You May Improve Your Data Security

As we recently explained in an article on data security, a single security breach costs the average American company $8.64 million. Particularly in retail, where meeting Payment Card Industry Data Security Standards (PCI DSS) is an essential part of doing business, protecting sensitive information is an ongoing task that requires constant vigilance.

Although not all firms that handle outsourcing for manufacturing and retail companies offer the same data security level, it’s a major point of pride for DATAMARK and something you should look for as your organization moves forward with selecting a partner.

6. Your Continuity Planning Can Be Put on Autopilot

Business continuity is on the minds of most corporate leaders today, but until recently, most organizations didn’t have comprehensive continuity plans, or their plans went untested. That means there’s a good chance your organization is just getting started with yours, and it’s a monumental task to handle, especially if you don’t have someone on your team who’s been involved in continuity management before.

When you partner with an outsourcing company like DATAMARK, continuity can be built into all your outsourced processes from the ground up, so your business is protected and resumes normal operations promptly when a pause is unavoidable.

7. You Can Cover the Night Shift Easily

Whether you need someone on the phones overnight, have a global customer base that doesn’t sleep, or simply want documents processed overnight so your in-house team can get to work first thing in the morning, outsourcing is the vehicle that can make it happen with ease.

8. You’ll Save Money

Saving money has historically been one of the most common reasons organizations look into outsourcing to begin with, so it’s no secret that if you outsource manufacturing and retail back-office processes, you’ll experience it firsthand too. Between improved efficiency, reduced errors, and lower labor costs, the savings associated with outsourcing are great.

Connect with an Outsourcing for Manufacturing & Retail Specialist

For more than three decades, DATAMARK has been providing BPO services for Fortune 100 companies, government agencies, and large enterprises. As a specialist in retail and manufacturing BPO, we can help your organization achieve all the benefits outlined here and more. Contact us for a consultation.

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