There are many reasons why a company should outsource its e-fulfillment. While some reasons are obvious and easy to understand, such as many companies do not pay any attention to the benefits of outsourcing its fulfillment services, some are comparatively not so obvious reasons and are hard to understand.
Why You Should Outsource E-fulfillment
The process of receiving orders from your web store, and shipping them to customers around the world is termed as E-fulfillment, and these are the obvious reasons you should outsource E-fulfillment.
Lack of capital:
Many Startups and established companies do not have the capital to rent a warehouse, hire employees, lease a forklift, pay for insurance, and any other charges. In such cases using Third Party Logistics companies to handle the fulfillment services is the only way to go.
Faster Turn-Around time:
When you are selling products online, in order to succeed in the e-Commerce business you need to ship fast. Customers these days don’t want to wait for an additional day or two to receive their products. Most “fulfillment centers” have enough staff to ensure that the orders leave as quickly as possible, something you might not be able to do if you have limited resources.
Focusing on your own business:
A company needs to focus on its core abilities whether it’s selling or developing new products. That is why several companies outsource their order fulfillment services. It is just wiser to worry about sales than receiving, warehousing, shipping, and inventory shortages.
Flexibility:
Companies that are selling online can choose the Third Party Logistics Company and the location to ship from. They can also have multiple locations to ship from without the haste of renting the space at any of these locations.
Not so obvious reasons why you should outsource E- Fulfillment.
While obvious reasons are easy to understand and can be seen easily, there are some reasons which shouldn’t be overlooked.
Lower shipping rates:
3PL companies usually have higher benefits as they have high shipping volumes which qualifies them for larger discounts and much lower rates than if you try or ship on your own. This applies to all forms of shipping such as Inland Transportation, or even Ocean freight.
Expertise:
While the company must focus on newcomers, they should also have people who are working in the fulfillment centers for many years, it can be really helpful and you cannot put a price on experience.
Cross-Selling:
Through working with the fulfillment company you get to meet potential clients.
Global reach:
If you are planning on exporting your products, you should go for 3PL’s as many of these companies are freight forwarders.
Value-added services:
Fulfillment centers can help with branding and marketing in addition to other services such as collections and receivables management.
According to a study by the Harvard Business School, it is better and efficient to use a fulfillment company instead of doing the fulfillment yourself.
How Tenaxx Logistics Can Help?
If your company is seeking a partner for third party warehousing and e-commerce fulfillment services, Tenaxx Logistics is the right place for you. With over 1 million square feet of warehouse space, effective costs, flexible agreement, and modern tools and software, it’s the ideal warehousing partner for the company of all sizes.