b.cognosco

Caution must be taken not to overlook the actual ROI of most fulfillment operations (low) and the costs of inventory (high). Many fulfillment providers today have built businesses based more on storing things than providing robust services. As the cost of inventory and real estate has risen, they've found themselves pinched between expensive warehouses and customers who no longer want to maintain inventories. Most printers will likley have to make changes in their market and sales strategies for fulfillment to generate significant revenues. And selling print is a far different proposition than selling operational support services.

Fulfillment can be a solid service when matched with other appropriate offerings -- such as sophisticated freight and logistics management -- but printers must be wary of treating it as a simple warehouse adjunct. Instead they must address fulfillment as just one aspect of a demand-driven business and customer model, and build a solid value proposition for these emerging markets.

Fulfillment Services The Next Killer Application for On Demand Printing [WhatTheyThink]