Benefits of Third-party Fulfillment Services
Fulfillment professionals can help your company take control of its inventory, fulfill unique orders quickly, and generate more sales.
It can be very difficult to keep up with demands, especially if you are running a small business that is experiencing growing pains. Not only are you responsible for manufacturer products, but you’ll also need to find a space to store them all. Following that, business owners will also have to conduct the distribution strategy. These are major responsibilities that take up a lot of time and energy. Fortunately, there is a solution that can help eliminate all of these frustrations.
This blog illustrates why it’s best to work with a third-party fulfillment company to help with inventory management, packaging, order fulfillment, and distribution.
Advantages of Using a Third-Party Fulfillment Service
If you want your business to build sustainable growth, then customer satisfaction needs to be your highest priority. That can be pretty difficult to achieve when your operation is functioning as a logistical nightmare. Luckily, this is a preventable issue because third-party fulfillment companies have several secret weapons that will help propel your business ahead of the curve.
These are the main benefits that come along with working with an order fulfillment service:
Lower Operating Expenses
Much of your budget will revolve around things like warehouse rent, packing supplies, maintenance, equipment purchases, shipping costs, and so much more. If you want to prevent your overhead costs from skyrocketing, then it’s best to outsource for fulfillment support. Working with a third-party fulfillment company is a surefire way to reduce capital expenditures that relate to distribution and warehousing services. Your third-party partner will be responsible for:
- Reducing warehouse and storage leases
- Cutting labor and shipping costs
- Providing economically pleasing shipping services
- Condensing pack material costs
- Minimizing fulfillment taxes
More Business-Centric Focus
There’s no other way around it, order fulfillment is exhausting. It drains a lot of your time, energy, and focus that can be used to complete other tasks for the business. Think about it this way: If you are responsible for creating your company’s marketing campaign but are stuck having to help the team get caught up with packing orders all day, don’t expect to get a lot of strategic planning done.
Outsourcing your fulfillment services helps alleviate those types of responsibilities from your agenda. As a result, this frees up more time for you to focus on the most important objectives —growing your business and serving your customers.
The Ability to Scale
Think back to a month when you only had to deliver 150 units. Now fast forward just two months later when you have to fulfill an order more than five times that size. Does that worry or excite you?
Fulfillment companies make it easy for businesses to manage any amount of inventory. They have resources to accommodate any change in order quantity. So, if you come face to face with a sudden influx of orders, you’ll be able to easily adjust. When you work with a professional fulfillment provider, you’ll always have plenty of stock on hand to help you tackle any type of demand.
Various Fulfillment Options
Partnering with a fulfillment company can help in a variety of ways, but that doesn’t mean you have to give up full logistical control. Not every product needs to be shipped from your fulfillment provider. There are no long-term service contracts to sign, meaning you only need to use a third-party service when it makes the most sense.
These are some of the options that you’ll be able to decide on:
- Self-fulfillment: For low-volume orders, it’s more cost-effective to handle the fulfillment process on your own.
- Complete outsource control: Your third-party partner will take care of each order for you. This is ideal for companies that have to regularly serve high-volume demands.
- Mixed order fulfillment: You can choose which orders are worth fulfilling on your own. This model is ideal when you are in charge of a regional business that experiences peak production during different seasons of the year.
- Drop shipping: You may not have to purchase new inventory after all. Drop shipping completely foregoes this process. Your third-party provider will get the product directly from the manufacturer and ship it directly to the customer.
Order Fulfillment Made Easy With Presort
When it comes to order fulfillment, Presort is in a league of its own. We are logistical masterminds that will help eliminate any headaches associated with packaging, warehousing, and distribution. Give us a call today to find out for yourself. Contact us to schedule a free consultation with our team!
