Analyst Insight: Online sales surged last year, and many companies saw their e-commerce sales grow by double digits. This growth is expected to continue for the foreseeable future, so the good news is that rising rates and revenue for e-commerce are significantly exceeding expectations. But there is bad news too - e-commerce is stressing distribution operations and many companies are having difficulty keeping up. Adopting the right operational practices for order fulfillment is essential for business success. - Kelly Reed, Partner, Tompkins International

Newgistics Inc., a provider of electronic-commerce software and systems for retailers and brands, has entered into a partnership with ShipStation, a Web-based shipping service for online merchants.

To serve its demanding government and business customers, the company needed to find a way to resolve any potential service problems in the quickest and most cost-effective manner possible.

Trust and a sharing of risk and reward are the hallmarks of an outsourcing agreement that took the two companies beyond the concept of "price per activity," to one that strives for mutual profitability and enhanced customer service.

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