As a new entrepreneur with little money to support your startup, it’s often necessary to wear multiple, if not all the hats related to your business.
In the beginning you may have no choice but to save costs with DIY means, managing everything for your e-commerce business from A to Z.
Without startup capital, learning and running all aspects of your business becomes necessary, but eventually the workload catches up with you.
Over time as your online business begins to grow and you see a significant increase in volume, it may be time to scale. At this point, you’re likely making enough money to outsource various aspects of your online retail store.
This is where an order fulfillment center, known as a Third-Party Logistics provider, comes in.
Deciding to partner with a 3PL will remove the added stress of your business by leaving the legwork to the order fulfillment experts.
In-house fulfillment is complicated and time-consuming. A 3PL can help you increase delivery times, reduce shipping costs, provide adequate storage space and overall Order fulfillment optimization.
Order fulfillment centers like Fulex offer comprehensive, efficient resources that save much-needed time and money in the end.
If it’s time for you to focus on growing your business instead of juggling ecommerce logistics, keep reading.
This blog offers insight into when you know it’s time to scale and switch from in-house to outsourcing fulfillment.
WHAT OUTSOURCING FULFILLMENT LOOKS LIKE
Order fulfillment starts when an ecommerce company processes an online order. When working with a 3PL the order is forwarded on to a fulfillment center where it is picked, packaged and shipped to the customer, tracking included.
A solid fulfillment center ensures the success of your business within the modern marketplace by allowing you to focus on customer needs and selling your product, while the 3PL handles everything else.
Order fulfillment experts have cultivated years of knowledge and implement best practices to benefit companies of all sizes to help your business meet performance objectives.
Partnering with a 3PL is a relationship that optimizes the supply chain by streamlining operations while saving you money.
BENEFITS TO OUTSOURCING FULFILLMENT
Automation and technology
Third Party Logistic providers use software to optimize fulfillment, which includes automated processing, inventory tracking and order management, among many other things.
A 3PL streamlines the order fulfillment process by incorporating automation for orders, which includes picking, packing and shipping to customers, as well as return processing.
Fulfillment centers have built-in inventory management software that provides real-time updates for the business owner and customer along the product journey to its end destination of delivery. Ultimately it leverages fulfillment infrastructure.
Faster shipping with multiple warehouses
Where are locations of the warehouses for inventory storage in relation to where your customer base is? Fulfillment staff should be well-trained in the routing requirements of the big box retailers throughout America and overseas.
In addition, having the ability to split inventory across multiple warehouses allows you to expand customer outreach geographically.
Fulex manages three fulfillment warehouses in Chattanooga, Detroit and San Diego, Calif.
Reduce logistics cost
Outsourcing fulfillment allows you to benefit from lowered logistics costs associated with labor, shipping, transportation and warehousing, by paying for what you need at the time you need it.
3PLs store your inventory, which reduces overhead on certifications, equipment, packaging, rent, and other things you’d otherwise be responsible for on your own. 3PLs also negotiate bulk discounts with major shipping carriers for better domestic and international rates.
Scale faster and save time
With a 3PL you can optimize efficiency instead of focusing on processing orders, picking and packing boxes, and taking multiple trips to the post office.
3PLs have the capability to integrate an entire ecommerce business into your shopping cart, payment processing, marketing and affiliate management, shipping systems, accounting systems and so much more.
Most businesses fluctuate in sales throughout the year and partnering with a 3PL allows you to more effectively manage the ups and downs.