OPERATIONS
If you or someone on your team is already an experienced fulfilment expert, your distribution network is a core competency, or you’ve already built out your own eCommerce supply chain, you may be at an advantage to oversee fulfilment yourself.
AVOIDING OVERHEADS However, outsourcing to a 3PL partner comes with advantages. When you hand off fulfilment to a partner, there is a lot less for you to worry about when it comes to setup, workload, overhead optimisation, and maintenance. Purchasing land or leasing warehouse space that meets your needs can be a huge investment that few can afford. You’ll need loading docks to receive inventory, proper shelving units and warehouse racks, and be optimised to efficiently generate pick lists and pack orders which can be prohibitive.
TIME EFFICIENCIES Hidden costs of self-fulfilment can be very expensive and require a great deal of your attention. And it’s not just about the money; many eCommerce companies find that the time it takes to manage inbound and outbound logistics processes would be better spent on more strategic activities to grow their business, ranging from marketing to product development.
SCALING UP AND DOWN Another important consideration is how your operations will be able to suddenly ramp up or even slow down when order volume changes. Even the best inventory forecasting can’t always keep up with unanticipated variability in consumer demand. What happens if several staff quit or you have a
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huge spike in orders? Will you be able to adjust and ship packages out on time? It’s critical to plan for peak season accurately and proactively, in addition to any other highs and lows.
A 3PL is an expert in fulfilment operations and inventory management, including receiving, picking, packing, shipping, labelling, carrier pickups, returns, and more. Tis makes it easy to quickly get started with a 3PL that already handles large volumes of shipments and fits perfectly into your supply chain.
ECONOMIES OF SCALE And with volume comes bulk discounted shipping rates, a network of partners that help drive faster and more effective service, a mastery of fulfilment best practices, and the ability to easily scale their workforce and handle any spikes in volume to help ensure a smooth Q4 and holiday season.
Any modern tech-enabled 3PL will have streamlined shipping and fulfilment solutions for eCommerce businesses. Tis entails seamlessly integrated systems that connect to all the places you sell online to automatically send orders to the 3PL after they are placed, as well as real-time inventory tracking reports and automated order tracking. You can even manage inventory in your 3PL’s fulfilment centre and automate alerts to reorder more when product levels are running low.
While outsourcing to a 3PL is not the perfect solution for every business, in tough times every saving is crucial. Businesses should look to outsource where possible and working with a 3PL can provide an advantage.
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