On-demand shipping is appealing to customers because it allows them to have things sent as quickly as they would like, offering flexibility and convenience. Modern companies must adapt their traditional logistic operations models to accommodate the increasing customer demand for on-demand delivery in order to satisfy consumers’ expanding requirements. Customer retention and loyalty are significantly enhanced by the availability of a reliable, consistent supply chain — how effectively and efficiently a firm responds to an order is directly related to consumer satisfaction. Customers don’t only evaluate product quality when determining whether or not they’re satisfied with a purchase; they also take into account the order fulfillment and delivery process as a whole. Consumers are paying attention to the route their purchases take to arrive at their homes, from the shopping cart to their door.
Fulfillment by Amazon is a fantastic method to provide excellent customer service while still concentrating on innovation, development, and other critical skills.
What is the process of outsourcing fulfillment?
Fulfillment by Amazon (FBA) is a service that fulfills your orders on Amazon’s behalf. Most 3PL firms work with e-commerce merchants and are activated to pick, pack, and ship items when purchases are placed. When it comes to fulfillment, many 3PLs take into account the overall amount of inventory allocated and the distance between locations when beginning processes. The 3PL provides for the transportation and scheduling of goods, frequently utilizing favorable volume-based shipping costs that individual merchants may not be able to obtain.
Lower costs in general
In many cases, order fulfillment outsourcing is critical to increasing profits. Most 3PL firms have numerous clients within their facilities and ship large amounts of items, resulting in extremely low shipping rates. The Ingram Micro Launch Fulfillment Platform, for example, enables advanced technology such as that used by 3PL providers with sophisticated technologies like Ingram Micro to optimize routing and rating of orders, showing the fastest and most cost-effective shipping choices. Many 3PLs now offer reverse logistics services, allowing goods to be sent to clients faster. In addition to providing forward logistics services, many 3PLs provide integrated reverse logistics solutions so that returned items can be re-stored more quickly, reducing carrying expenses.
Your operating and overhead costs can also be reduced when you use a 3PL; it’s all about scale. Packaging and storage materials are bought in large quantities by fulfillment partners. They charge you for the space you utilize rather than requiring you to pay for an entire warehouse. They also offer access to experienced operations managers, account executives, and labor that may be scaled up or down, saving you time and hassle in recruiting, hiring, employee development, and payroll while giving you access on-demand access to a team of experts.
Improved client service
Fulfillment service providers assist guarantee that client demands continue to evolve and even be surpassed. Customers have developed the expectation of same-day delivery, curbside pickup, overnight shipping, and other services. Individual firms may find it difficult to keep up with shifting customer wants, but 3PL providers are experts in keeping track of the small stuff.
Customer service is essential to building long-term, solid business relationships and trust, and the handling of returns and exchanges by a 3PL provider allows you to concentrate on other elements of customer service.
To improve order fulfillment, streamline technology is required
Outsourcing fulfillment providers frequently employ the most up-to-date solutions and technologies, and outsourcing fulfillment can allow your company to benefit from the newest and greatest tools — including inventory management, item tracking, shipping and delivery, freight collection, carrier selection, security measures, payment processing, cost reduction through optimization of operations, and strong data analytics. Fulfillment by 3PLs is often achieved via ERP or warehouse management systems to establish simplified procedures and real-time outcomes. Overall, the technological tools available through outsourcing fulfillment will help companies improve supply chain efficiency and visibility, integrate front and back office operations, and provide a foundation for scaling a business.
Scale business and reach international markets
Companies that outsource fulfillment have access to a global network of warehouses. When compared to the few locations accessible when fulfillment is kept in-house, many 3PL companies provide access to a wider variety of warehouses. Ingram Micro Commerce and Lifecycle Services, a division of Ingram Micro Inc, has 154 worldwide warehouse locations, allowing companies and merchants to expand into new areas more quickly and cost-effectively.
Focus on growing your business
There are never enough hours in a day. Brands and merchants have more time to focus on their core strengths when they outsource order fulfillment. As a company grows, its fulfillment and logistics needs become more complicated. Time spent preparing for, planning, and executing projects may be saved by outsourcing the heavy lifting to a 3PL. This will free up time for innovation, marketing, sales, and growth.
Is outsourcing order fulfillment for everyone?
Despite the obvious advantages of outsourcing order fulfillment, there are a few additional things to think about before deciding if it’s the ideal fit for you. When firms outsource, they frequently worry about giving up some degree of brand control; 3PLs operate within strict guidelines and operations are already in place. When it comes to third-party logistics (3PL), you want to be sure that your 3PL provider is a reflection of your brand, and trust must be established. Work together like you would with any other strategic partner to achieve both of your business objectives for the greatest possible result.
Have you outgrown your current 3PL provider? We’re designed to enable companies and retailers to scale, with over 200 pre-developed connections that allow you to quickly and easily integrate with merchants, marketplaces, shopping carts, and other commerce tools. We prioritize connectivity, transparency, and consistency in every customer relationship, and we apply Lean Six Sigma best practices to guarantee operational excellence. Check out the solutions Launch Fulfillment has to offer if you need to enhance your present fulfillment operations.