The Fulfillment Center Edge: 6 Advantages For YOUR Business

6 Ways Your Business Can Benefit From Using A Fulfillment Center

As their business grows, entrepreneurs try different methods to increase sales and reduce costs.

Improved quality, innovation, reduced prices, are some ways they use.

Customer satisfaction simply delivers the best ROI.

Satisfied customers become brand advocates who can attract even more customers. Loyal customers also tend to make more repeat purchases. Creating and maintaining good customer relationships is vital for longevity of any business.

How companies create satisfied customers differs among industries, since every industry has its unique challenges:

In eCommerce, sellers find that the last mile of order fulfillment is most fraught with challenges.

To counter this, more eCommerce businesses are shifting their focus to optimizing their delivery. But that’s easier said than done.

Complete fulfillment involves storage, accurate picking and packing, packaging, shipping, delivery and returns processing.

The average eCommerce seller also has to juggle product sourcing, customer inquiries, complaints etc. When a business processes small volumes, doing all this in-house may be feasible. But as the business grows, this approach can become counter-productive.

For some business owners, the idea of someone else running any part of their business is anathema. But to increase sales, smart business owners look for order fulfillment companies to partner with.

Still doubt the business benefits of outsourcing order fulfillment?

Here are six benefits your business can gain by partnering with an order fulfillment company:

Lower Operating Costs

Renting warehouse space, equipment, packing supplies, maintenance etc, all add to your overhead costs.

By outsourcing fulfillment, your business benefits without incurring those capital expenditures. You’ll be taking advantage of its economies of scale, allowing you get the best possible prices and terms.

Using a 3PL, companies keep their costs predictable, as they only pay for the services they use.

This makes calculating fulfillment expenses predictable and improves cost control.

Improved Business Focus

Most small business owners attempt to juggle too many tasks. They source suppliers, create marketing campaigns, interact with customers etc.

In trying to do everything, they end up not doing any of them well.

Outsourcing frees your company from mundane-but-neccessary tasks like storage, packaging and delivery.

This allows you focus on core business activities like planning and growing the business.

Access to the Best Technology

Have you been trying to track stock levels using off-the-shelf solutions?

Or, considered upgrading your warehouse to use an AS/RS?

Acquiring these systems requires a huge investment in time and finances.

Order fulfillment companies use state-of-the-art software for monitoring inventory, tracking shipments, accounting platforms etc.

By partnering with them, you have access to the best software available, at little cost.

Improves Scalability

With 2,000 units sold and 4,000 booked for December, are you apprehensive or ecstatic?

When mismanaged, success can also be the undoing of a small business.

An increase in order volume can overwhelm established systems resulting in poor performance.

Fulfillment companies have the resources to accommodate any change in order volume.

Using an order fulfillment company, businesses can also enter foreign markets, with minimal investment.

Benefit from Experience

One of the main benefits of partnering with an order fulfillment firm is the experience they bring to the table.

These businesses have experienced employees, custom software and equipment to make fulfillment seamless.

Their order  picking, packaging, labeling, and shipping processes have been fine-tuned to make sure orders are processed quickly and accurately.

Specialized fulfillment companies know what makes your customers tick. This allows them fulfill all your customer service needs, just like you.

Avoid Market Fluctuation

Like clockwork, the price of fuel goes up across the globe, every year.

This has an impact on all areas of business especially transportation.

Trucking and shipping costs will go up, but with outsourcing, businesses can be shielded from such fluctuation.

Other costs they are also protected from include rent, payroll etc. Reducing overheads can help companies survive tough economic conditions.

All these benefits serve to enable your company to grow and increase profits with ease. Competing with big box retailers used to be really difficult, but with the right fulfillment company, your business can.

Ready to reap these benefits and more?

Contact a Floship rep now and see how we can help your business.

 

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  • April 25, 2016