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Outsourcing fulfillment services are a common solution for businesses overwhelmed by their When you decided to start your business, did you get a thrill at the idea of spending hours upon hours organizing, storing, picking, packing, and shipping your goods? Probably not. For most small business owners, time spent on logistics would be better spent on marketing and building a customer base. Outsourcing order fulfillment to a 3PL will let you do just that.
Key Takeaways
Join us as we review the five best reasons to outsource your logistics needs to a 3PL.
Before I explain the advantages of outsourcing fulfillment, let’s look at the differences between this option and an in-house strategy.
While the idea of managing every aspect of your operations may seem appealing, outsourcing order fulfillment to a 3PL offers distinct advantages.
Establishing a partnership with a 3PL can benefit your business’s bottom line in several ways. To understand exactly why this investment is so helpful for growing your business, we can break these benefits down into five distinct categories:
Let’s examine each of these benefits in greater detail.
As your business grows, so do the challenges of managing logistics. If you receive a sudden spike in sales, you could find yourself scrambling to meet the increased demand while still offering speedy order fulfillment.
Third party logistics providers are able to scale operations in real time should instances like this occur. They do so by using the following tools and techniques.
A 3PL’s ability to scale operations in the face of increased demand leads to our second major benefit for shippers: reduced shipping times
From retailers to end users, customers have become accustomed to shipping times of 3.5 days or less. This is the minimum expectation: businesses that don’t meet it will find themselves struggling to stay profitable. On the other hand, businesses that exceed this expectation will set themselves up as leaders in their respective industries. Outsourcing fulfillment is one of the easiest ways to get ahead of the pack.
A 3PL has access to a vast network of resources that help expedite shipments. Some of these resources include:
Considering that approximately 14.5% of goods purchased in the U.S. via retail or ecommerce were returned in 2023, it’s clear to see that a modernized return process is an important element of customer service.
Consumer demand for fast deliveries and easy returns only increases year after year as competing businesses strive to outdo one another. These are also two areas where a 3PL’s experience and resources offer an advantage over businesses that try to do everything themselves.
A study conducted by Zippia in 2023 revealed the following statistics regarding the importance of the customer experience.
Setting and fulfilling the right delivery time expectations is a significant part of a successful customer journey. Trusting these responsibilities to a 3PL, especially if you have little to no logistics experience, will go a long way toward building trust and repeat business with your customers.
When you want pizza for a party you’re throwing, which of the following do you usually do?
Obviously, the second solution is more cost-effective and convenient than the first, allowing you to focus on your party. The same is true of outsourcing fulfillment.
Instead of investing considerable capital into building your own distribution and storage network, you’ll find it far easier and less expensive to hire a 3PL service provider who can manage fulfillment on your behalf. This also goes back to scalability, as many providers can flex your requirements on a month-to-month basis. In this way, you’ll never spend more than you have to on their services.
That leads me to the next benefit.
Related: How to Reduce Ecommerce Shipping Costs
Aside from money, the most important resource business owners need to manage is time. In fact, one of the top reasons small businesses fail is due to poor planning, which itself is often a result of poor time management or simply not having enough time to address issues as they arise.
Outsourcing your fulfillment operations frees up time that would otherwise be spent on inventory management, printing labels, and other logistics-related tasks.
These are just some areas you can focus on with the time you’ll save by partnering with a 3PL:
Effective time management is crucial to making sure your business thrives. The right 3PL partnership allows you to concentrate on business growth without worrying about the details of storing, packing, and delivering your products.
Growing businesses must excel at customer satisfaction while minimizing costs to ensure profitability. We’ve shown you how a 3PL can help you achieve those goals. If you’re ready to take the next step, so are we.
Fulfillment and Distribution owns warehouses near the largest, busiest ports in the United States, and our strategic partnerships give us access to a national network of carriers and distribution centers. Our logistics experts have the expertise to create customized fulfillment solutions for businesses of all sizes and industries.
We also offer individual services, including:
Give us a call at (866) 989-3082 or request a quote online today. We’re ready to handle your fulfillment needs so you can focus your time and energy on business growth.
