Every FMCG business eventually reaches the stage where they must consider outsourcing order fulfillment. In the early stages of growing your business, fulfillment in-house is generally manageable. However, when you begin struggling to fulfill orders, an outsourced order fulfillment service might be your best option.
As customer expectations continue to rise when it comes to online shopping, a modern ecommerce business must keep its standards high. For small businesses or those that lack the resources of large retail organizations, optimizing the order fulfillment process is a challenging task.
Hiring an external fulfillment service can save your business time and money. Here are seven more advantages to outsourcing fulfillment.
1. Reduced Capital Expenditure
As order volume demands increase, a business may run out of space to store their inventory. It may also be lacking in terms of equipment and technology to manage the supply chain effectively. While these are areas that can be invested in, warehouse space and logistics technology are extremely expensive.
By using a third-party logistics (3PL) provider to take care of order fulfillment, a business can benefit from a reduced need for capital expenditure.
2. Time to Focus on Core Aspects of the Business
Order fulfillment is a time consuming and grueling process. By outsourcing to a specialized fulfillment company, a business can focus on growing and improving its core competencies.
There is more to a business than just selling your product. Key areas such as customer service, marketing, and core business values must also be focused on.
3. Benefit from Reduced Shipping Rates
Large fulfillment businesses benefit from economies of scale. This allows them to negotiate competitive shipping rates, leading to a reduction in shipping costs for your business.
4. Gain Experienced and Skilled Staff
As a specialist business, a fulfillment service is run by experienced and qualified staff. By hiring their services, your business will gain significant benefits. Efficiency, productivity, and speed of delivery are likely to improve drastically. Optimized fulfillment can set your business apart from customers.
5. Leveraging the Latest Technology
Technology and data are fundamental in improving fulfillment in terms of order accuracy, inventory management, supply chain efficiency, and order delivery. Large fulfillment companies utilize advanced logistics technology and management software to ensure their processes are as efficient as possible.
Outsourcing fulfillment to a 3PL generally leads to far better service than an in-house process. Technology can make improvements on a scale that would never have been possible for small businesses.
6. Flexibility and Scalability
Flexibility and scalability are two of the main benefits of outsourcing. It allows for cost savings as sales volumes fluctuate. Businesses aren’t under significant pressure to cover their overheads during off-peak seasons.
Distribution can easily be scaled up or down, depending on the volume of sales. This allows for distribution demands to be met efficiently.
7. Expansion Opportunities
Most 3PL’s are capable of large scale distribution. It’s common for them to have several fulfillment centers located in key areas around the country (or globe). With such extensive distribution links, far-reaching markets are more easily reached.
Businesses can use this platform to expand their reach and enter new markets. This is particularly useful for ecommerce businesses that don’t have the means to provide international distribution.
Simplify and Conquer
By reducing the workload and amount of complex processes that you have to deal with, your business can improve drastically. As such an important yet complicated business function, order fulfillment is often better left to the experts. There are significant benefits to be gained from freeing up your business from logistical operations.
As a leading international shipment organization, Asiana USA can offer information, help, or services to businesses involved in fulfillment. Call one of our experts today at (855) 500-1808.