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If you run an eCommerce business, optimizing warehouse and fulfillment are essential in order to provide the best service to your customers. Managing your own inventory is one of the biggest challenges in eCommerce, however, especially if you want to scale your business. Outsourcing your fulfillment to a third-party logistics provider (3PL) has many advantages. You will have access to more resources, reduce costs, and be able to improve efficiency. Leave storage, packaging, and shipping in the hands of the experts while you focus on growing your business. Here are five reasons to outsource fulfillment for your eCommerce.
Scale your business
Outsourcing fulfillment will allow you to cope with the rise in demand. If you’re receiving an increase in orders, you’ll need more space for your inventory and more hands on deck to manage it. Logistics companies will have the space and equipment you need, with large warehouses equipped with customized shelving from reputable brands such as Biltindustries.com. They will provide you with a secure place to store more products, and take care of fulfillment as your business grows.
Managing your own inventory can be costly. You’ll need to invest in warehouse space and the staff to operate it. If you’re looking to cut costs, outsourcing is a better solution. You’ll save money on overheads and will only have to hire fulfillment services when you need them. Most 3PLs offer fixed rates per service so it’s a more cost-effective short-term solution.
Lower shipping rates
By working with a logistics company you’ll be able to reduce shipping costs, as well as operating expenses. Several shipping orders can be combined from different businesses, so this means they are able to offer reduced rates. Third-party warehouses also tend to be conveniently located with more transport options and larger fleets, so the entire shipping process is more efficient.
One of the advantages of outsourcing, in general, is that you won’t have to spend time or more training staff. You’ll have access to experts with industry-specific knowledge that will be able to provide you with the best service. They will also offer professional insights on how to optimize the overall fulfillment process. Running your own warehouse is challenging and it can be difficult to match the quality of service of your competitors. By outsourcing, you’ll have access to skilled professionals to help you gain a competitive edge.
Third-party logistics providers also have access to more resources, especially emerging tech for eCommerce. Technology such as inventory management tools, analytics, and artificial intelligence allows them to streamline the fulfillment process. Delivery services also use integrated systems to communicate with both drivers and customers. Route management software enables drivers to avoid delays. You will then be able to notify your customers of more accurate arrival times. Outsourcing fulfillment for your eCommerce allows you to provide the best service. In order to get ahead in today’s market, it’s necessary to be as quick and efficient as possible, and outsourcing can help you.