Let’s say you run a successful online shopping cart website; order fulfilment is obviously a major concern, as your customers want to receive their goods in a timely fashion, and while a few decide to handle their own logistics, the majority of e-commerce websites would outsource their order fulfilment to a specialist third party provider (3PL).
The reasons for this are many; which we will discuss in this article.
Renting a warehouse is an expensive exercise, then you have to hire workers to pick and pack your orders, which then have to be delivered, and when you crunch the numbers, this is a very costly way of achieving order fulfilment.
Generally speaking, only the huge online retailers would benefit from keeping their logistics in-house, as the cost are prohibitive.
However, with third party logistics companies who are geared up for picking, packing and delivery, you have a low-cost, order fulfilment system that is reliable.
The Fulfilment Centre
Another term for a 3PL provider, the fulfilment centre is geared up to process high volumes of orders for their many customers, and the great thing about such a company is there are no long-term contracts to bind you to their service; simply climb on board and should you decide to suspend the service for a while, it only takes a phone call.
If your business is seasonal, for example, you might really need their help during Christmas and the New Year, while at other times, you can manage. Being fully flexible, you will only pay for the services you actually use.
Remaining Customer Focused
If you outsource your logistics, you and your team can focus on enhancing the buying experience on your e-commerce platform, safe in the knowledge that all of your orders are processed and delivered quickly and efficiently.
Cost-wise, you are far better off using a 3PL provider. With a quick Google search, you can locate an established company that will be happy to partner up and provide their services.
Comparing the Two
If you are currently doing your own picking, packing and delivering, why not talk to a third-party provider and compare the costs? This will help you to make an informed decision.
Plus, you can rest assured that your orders are being processed in a timely manner. An online search will give you the location of a 3PL provider and you can drop by and take a look at their facilities and set up, which should give the confidence that you are making the right choice by outsourcing.
It is vital that all of your orders are despatched efficiently and in good time. Rather than setting up your own warehousing, you are better off outsourcing to the experts. These experts are geared up for high volumes and will adjust their service according to your needs, which is an ideal scenario.
When comparing costs, remember to factor in everything, especially the manpower you would require to self-fulfil, which might be considerable.
This post was published in partnership with Mediabuzzer.
Are you outsourcing your warehousing and fulfilment to a third party logistics company?