Are you managing your own in-house fulfillment and it’s becoming overwhelming? It is time to shift to 3PL fulfillment. Many businesses try to manage the process while their business is young, but as they keep expanding, outsourcing the 3PL fulfillment becomes necessary due to cost, complexity, and time.
This article will highlight some of the reasons why outsourcing the 3PL fulfillment is very important.
What is 3PL Outsourced Fulfillment?
A Third-Party Logistics firm offers outsourced logistics operations to e-commerce businesses. Some of the operations that can be outsourced from a 3PL include storage, warehousing management, transportation, etc.
It helps managers focus on the business’s essential components, offers them access to innovative logistics tools, enhances productivity, and eventually leads to cost savings.
Why Should You Move From In-house Fulfillment to Outsourced Fulfillment?
The increased cost of fulfillment
When running a business, you are always looking for the best ways to reduce your operation cost to maximize your revenue. If you realize that the cost of operating an in-house fulfillment is highly increasing, you will need to move to the best alternative. The only best option is to hire an outsourced fulfilment company that will offer you professional services on all your fulfillment requirements.
Delay in deliveries
When a customer places their order, they expect it to be delivered within the shortest time possible despite the competition in the shipping market. If you are not meeting the necessary delivery times, you will likely lose many of your clients.
Outsourcing fulfillment services can help you speed up your deliveries to meet your customers’ demands. Outsourced fulfillment services will promise you to make deliveries within 1 or 2 working days.
Need for business expansion
Expansion of your business will come with many demands like an increased number of orders, venturing into a new market, and managing all aspects of the business. External Fulfillment Companies are always better positioned to facilitate all the necessary business expansion requirements. They can help you reach new geographical areas through their key distribution links.
Delegate responsibilities
Many small businesses have a tendency to take all business responsibilities on themselves, which brings a lot of limitations to their operations.
It may seem logical and effective to have in-house fulfillment when your business is young. However, when the order quantities grow, it becomes a complex, costly, and timely affair to conduct the in-house fulfillment. As a result, you will have to delegate all your fulfillment responsibilities to a 3PL fulfillment company.
Access technological advancements
3PL fulfillment companies have advanced technology and costly stock management systems to ease business operations. Therefore, outsourcing fulfillment services gives adage to enjoy highly advanced technologies managed by experienced specialists.
Shortage of a warehouse space
If you lack enough warehouse space to stock your items, it’s a clear sign that you need to outsource 3PL fulfillment services. If your company cannot acquire a warehouse and perform all the fulfillment operations simultaneously, you will have an option of shifting to outsourced fulfillment.
Conclusion
If you are operating a business that is rapidly expanding you will need to shift your fulfillment to a third-party logistics company. Contact Global Logistic Solutions, Inc for all 3PL fulfillment services.
