What Does It Mean To Outsource Fulfillment?
So you're a business owner, and you've come to the realization that you can't do it all yourself. You need to outsource some of your work in order to keep things running smoothly. But what does that mean exactly? And more importantly, what does it mean for your business? Keep reading to find out.
What Does Fulfillment Outsourcing Entail?
Outsourced order fulfillment is enlisting the help of a third party to handle some or all components of the order fulfillment process, such as inventory storage, packaging, and shipment. Third-party logistics organizations, or 3PLs, offer all the solutions needed to outsource your fulfillment completely.
While outsourcing fulfillment may appear to be a hazardous alternative, the firm you choose should be a genuine partner for your organization, not merely a commercial supplier.
What Services Do Third-Party Order Fulfillment Services Provide?
Picking and packaging, stock storage, worldwide shipping, automated shipment tracking, and other conventional fulfillment services are available from most 3PLs. Return management, bespoke solutions from preparing and carrying to customized packaging, B2B fulfillment, and other services are available. Furthermore, some 3PLs offer fulfillment software that includes all-in-one order and inventory control software, advanced analytics, and software for tracking real-time stock levels, orders, and deliveries.
When you outsource order fulfillment to a third-party logistics (3PL) business, they will take care of the following operations on your behalf, utilizing their network, personnel, and future technologies:
Storage and management of your merchandise in the 3PL's facilities (not just an on-demand warehousing platform that compliments you with warehouses that have additional space).
As long as an order is made on your site, you must execute a packing list and get the item(s) from their location in the 3PL's warehouse.
Using the correct box or poly mailer and packing supplies, package all products in the order, then apply the mailing label to the package.
They arrange shipping providers to collect items from the 3PL's facilities and deliver them to your consumers, together with digital order tracking data.
Processing Of Returns
We streamline the returns procedure and reintroduce unused products into your current stock.
Selecting The Right Fulfillment Provider: Best Practices
It's simple to see why firms outsource order fulfillment to third-party logistics providers. Outsourcing has several advantages that may help your company develop while also saving money.
But where do you start looking for the ideal service provider? Take into account the following:
Ascertain that the service can effortlessly provide to your consumers wherever in the globe. Businesses that need to ship internationally with quick-time delivery, for instance, may not be able to use local fulfillment suppliers.
Cost is crucial for fulfillment services, but it should also be balanced against the advantages you wouldn't get if you handled fulfillment in-house (such as shorter delivery times). Will you be able to save money by purchasing the lion's share?
Will you have to spend the total amount, or will you get a discount? Choose a 3PL that has strong relationships with shippers and is prepared to share volume discount savings with you.
Will scaling up or down as required be simple? You'll need a service provider who can handle seasonal swings in demand and expand with your company.
To ramp up order fulfillment operations, technologically savvy 3PLs use automation solutions like a cooperative, mobile robots. Look to determine if the service provider you're contemplating uses or will use technology to increase precision and agility.
So you're ready to outsource some of your work. That's great! But now what? Well, the first step is finding a company that can help you with fulfillment. And that's where we come in. Simpl Fulfillment is here to take care of all your order fulfillment needs, so you can focus on what you do best - running your business. Contact us today to learn more about our services and how we can help you take your business to the next level.