Hiring a third-party fulfillment company can solve many problems for businesses that are struggling to meet their order volume demands. Although fulfillment companies can benefit any type of organization, they’re particularly useful for ecommerce businesses that may not have the time and money to promptly fulfill packing and shipping.
Knowing when to hire fulfillment services can be tricky, but there are indicators to look out for. While particulars tend to vary between businesses, the overarching need for outsourced order fulfillment should be recognizable.
Whether you want to grow your business, improve your fulfillment process, or reduce your shipping costs, here are the most important things to consider about hiring a fulfillment company.
What is a Fulfillment Company?
A fulfillment company is a third-party logistics service that takes care of shipping, packing, inventory management, storing, and other order related functions on behalf of a business.
Benefits of Hiring a Fulfillment Company
Fulfillment centers
A fulfillment center is more than a warehouse for storing goods. It is a facility where third-party logistics (3PL) providers operate all aspects of a company’s order fulfillment on their behalf. From pick and pack services to negotiating shipping rates, fulfillment centers are equipped for every step of the process.
Business-to-business (B2B) and business-to-consumer (B2C) orders can generally be fulfilled by a 3PL without issue.
Speed of service
Fulfillment companies specialize in logistics. They’re optimized to deliver rapid and quality services.
Reduce costs
Renting or owning a warehouse and shipping equipment is costly, particularly for small businesses. By outsourcing fulfillment, you are avoiding these major long-term expenses.
Experience and expertise
Fulfillment companies not only have ample space and equipment, but they also have logistics experts and experienced support staff to further improve their process. Your business avails of this experience and expertise when you hire a fulfillment company.
Technology and strategy
Fulfillment services use the latest logistics technology and strategies to deliver the best possible results for your business.
Customer service
Most 3PL’s provide comprehensive customer service before, during, and post-fulfillment. This lessens the workload for your staff and can enhance your reputation among customers.
When to Hire a Fulfillment Company
After considering the potential benefits of using a 3PL, there are some internal aspects to look at before making your decision. If your business is negatively affected by managing shipping volume or any other fulfillment issue, perhaps it’s time to hire a third-party provider.
What are the needs of your business?
If your business gets a sudden influx of orders that exceed your usual amount, it’s normal to experience issues. The more important thing to consider is whether this will become normal. If your business is growing and you project increased sales down the line, you may need a fulfillment company to meet the demands. Establish your business needs with regard to shipping.
Is fulfillment disrupting your core business?
When business operations are backlogged due to the time spent to ship orders, you must consider outsourcing.
Do you have enough space?
When it comes to ecommerce fulfillment, many companies don’t have enough space to store or manage inventory. Hiring a 3PL is the perfect solution to this problem.
Fulfillment for the Future
Although outsourced fulfillment isn’t always necessary, it should be strongly considered as an option for any growing FMCG (Fast Moving Consumer Goods) business. Look to the future and weigh up the benefits alongside the needs of your business.
Asiana USA is a world-class shipping logistics company. We are on-hand to provide you with any information on your shipping needs. For a free quote or further queries, contact us today at (855) 500-1808.
