One of the most important aspects of running a company is learning to delegate. Let’s face it we can’t accomplish everything, even trying. This is particularly true of order fulfilment UK as it is one of the most time-consuming, difficult aspects of e-commerce.
However, letting go of some tasks is crucial. It frees your precious time, and lets you concentrate on building an online retail store.
It can be difficult to trust that other people will take care of the needs of your “baby” using the same enthusiasm as you do. You might feel a little constrained by your financial budget.
But outsourcing fulfilment can aid in growing your business, and also help you save money in the long term. In this article, we’ll go over 8 benefits that can be transformative to outsourcing fulfilment for retail companies.
Third-party logistics companies They are your partners for the fulfilment of your orders
Before we dive in to benefits of outsourcing, it’s crucial to understand what outsourcing fulfilment is all about.
If you decide to transfer fulfilment to another company then you’ll need to find an outside logistics firm, also known as a 3PL. The fulfilment partners store the items within their storage facilities. When you have received an online purchase and the 3PL will pick up your products from the shelves then pack it and prepare the item to be shipped using a shipping company such as FedEx, UPS, or USPS.
All of this is enabled by a solid integration between your inventory software you use and the online store. This link speeds up the fulfilment process and allows you to monitor the process when your new fulfilment provider delivers your order.
Not all 3PLs are created all equal. It is important to choose the right fulfilment partner for your requirements.
It’s all about the cost or the location of warehouses to customers, their capacity to accommodate return requests, or even the power in their integration with software selecting that right company is most important factor in unlocking the advantages from outsourcing fulfilment.
8 advantages outsourcing order fulfilment
Outsourcing order fulfilment comes with many advantages that go beyond not doing the work again.
In order to run a profitable business you must meet the requirements and demands of your clients. When it comes to fulfilling these expectations are very quite high. Late, lost or in error shipping methods are surefire ways to disappoint your customersthis is why it’s crucial to ensure your order fulfilment in order.
To help you comprehend the advantages, here’s outline of the top eight advantages of outsourcing fulfilment of orders.
- You can concentrate your efforts on the sale (and more)
Let’s begin with the obvious most significant benefit of outsourcing your fulfilment process is the fact that you won’t wish to continue doing it. The time spent creating labels and taping boxes can be put back into your business.
Although order fulfilment is feasible for smaller companies however, this process becomes demanding and time-consuming as you expand. When orders flow from various sales channels (in-store or online, sales events) You may run out of time to complete other aspects of your work.
However, you can delegate the bulk of the work to your logistics provider of choice and focus on more crucial tasks such as design marketing, sales, or marketing.
Control inventory from a back office
Many of the online CMS platforms come with tools that assist you in managing your order suppliers and stock all in all one location. Forecast demand, create low stock alerts, make purchase orders, determine what items are in demand or are on shelves, inventory counts and many more.
- Lower shipping costs
A lot of people avoid outsourcing fulfilment due to the perception that it is as a cost. However, third-party logistics firms can actually save money in various areas, like shipping.
The first thing to note is that the fulfilment company may have warehouses throughout the country , and sometimes even overseas. By balancing your inventory over these warehouses they can ensure your products are in closer proximity to your customers. By distributing inventory this way, you will lower shipping costs by as much as 25 to 25 percent.
Additionally, since they are big shippers, third party logistics firms typically receive better rates from shipping companies. Although it is dependent on the business the company, it is generally possible to save between 15 to 35% on the quoted shipping costs. Fulfillment firms are also equipped with software which permits their customers to look up shipping costs across different carriers and pick the lowest cost price for each order.
These are savings you can transfer to your customer giving them lower prices or free shipping to make the deal more appealing and bring in more sales.
- Improve speed of shipping
The effect that comes from having several warehouses spread across the country can be seen in speed of delivery. By putting inventory close to the customers, outsourcing fulfilment enables you to speed up delivery.
This is an incredible advantage for retailers. An astounding 67% of US customers want their products to arrive within just two or fewer days. A reliable fulfilment partner could be the only option for you to meet those expectations and compete with the nation’s largest chain retailers.
- Send accurate information about shipping to buyers.
Transparency and consistency are essential for online shoppers since it gives them confidence to click that purchase button.
According to a study, about 60% of customers tend to buy the item if they are able to see the time of delivery in the shopping cart. This is because transparency can work in reverse. Around 47% of buyers are reluctant to order from a company due to no transparency regarding delivery.
The outsourcing of your fulfilment can help you ensure that you have accurate delivery information when you check out. If you self-fulfill, a hectic day at the shop or a snowstorm, the car’s breakdown could have a negative impact on your ability to keep your delivery obligations. Your fulfilment partner needs to be a rock-solid partner. They’ve got the knowledge as well as the manpower and the infrastructure to give accurate shipping information and to deliver on time all year long.
- Reduce operating expenses
Outsourcing fulfilment is not without costs, so too is self-fulfilling. The time spent in packing and shipping is only the beginning of the cost. Retailers frequently do not include inventory storage into their fulfilment expense calculations however, this accounts for 21% of the logistics expenses. And if you’re forced lease warehouse space, the cost will skyrocket.
When you outsource fulfilment, you can save expenses and only pay the services you need. Third-party logistics firms typically charge for packing, picking and shipping, as in addition to the storage of your products.
- Expand your reach
Go nationwide. Expand internationally. When you receive an order from a different state or a different nation If you choose the right provider for order fulfilment will be in a position to take your company to the next step.
If you manage your own shipping it can be difficult to calculate shipping rates and anticipate the delivery times (how much will it cost for Hawaii is it again?). International shipping costs are more complex due to various regulations as well as currencies and the best methods. Therefore, most retailers limit their shipping options largely local or even regional.
However, outsourcing fulfilment can help increase your reach and access an even larger market. Many fulfilment firms have the infrastructure that allows them to ship and ship orders to all parts of the globe.
- Create and simplify your back office
Third-party logistics companies are typically at the forefront of technological advancements in e-commerce. They not only integrate with your online store, but they also enhance your understanding of key aspects of your back-office, such as:
Management of inventory
Shipping and handling
Accessing all of the information you need in one place can help you become more organized. It is possible to spot shortages in your inventory and patterns in your customers and keep track of your money.
- Happy customers
It could appear obvious when you look back It’s a good idea to be brought into focus. More efficient, lower cost shipping, precise delivery information with global reach and more time to spend on sales and marketing will result in happier, more customers. This is the main purpose of your company, outsourcing fulfilment can have a huge difference to help you reach it.
Moving forward by outsourcing order fulfilment
Many benefits comes from outsourcing the fulfilment of orders to an external supplier. From a more efficient back office to an increase of clients, delegating this vital aspect of your job to an professional can allow you to effectively expand the e-commerce aspect of your company.
If you choose to go ahead with outsourcing fulfilment to a third-party logistics firm make sure you take your time and conduct your research.
It’s a major decision , and you need to consider all your choices before choosing which one is ideal for your business.