Are you looking to scale your business or improve your shipping and logistics to provide customers with a better post-purchase experience? Curious about how a third-party fulfillment could help your business?
In this article, we’ll cover everything you need to know about shipping and warehouse fulfillment, and the benefits of using a third party logistics company, so you can decide if it’s the best business decision for you.
What is Third-Party Logistics & How Does It Work?
Third Party Logistics is when a business outsources part or all of its business’ distribution and fulfillment services. A fulfillment warehouse covers a variety of functions, such as receiving, storing, packaging and shipping products, as well as handling other issues like returns processing. They can often also be in charge of labor recruitment and management, which means you don’t have to focus on hiring people to handle your inventory.
Third Party logistics companies have grown over the last decade with the explosion of the Internet and growth of online and offline retail. In fact, it’s estimated that 86% of Fortune 500 companies use third-party logistics provider. And although they do not hold ownership of the inventory, they are legally bound and responsible for performing the requested fulfillment activities of your e-commerce company and will make sure your products get to your customers in the smoothest way possible.
Do I Need Third-Party Logistics for my Business?
As you grow your business, it’s important to know if and when working with a third-party fulfillment warehouse and shipping company is more effective than handling those logistics on your own. Here are some questions you can ask yourself that can help you better identify if you need this type of assistance.
- Am I fulfilling more than 30 orders a day?
- Am I running out of space for my company’s inventory?
- Is my business ramping out or about to explode?
If you answered yes to any of these questions, you may be in need of a third-party logistics company.
Benefits of Using a Third- Party Fulfillment Warehouse
Curious how warehousing can drive business growth? Here are some of the major benefits this type of warehousing can provide for your business.
They Offer Your Company Growth & Flexibility
If you’re currently renting warehouse space, you know how tricky leases can be, especially with their fixed terms. What’s great about third-party warehouses is that offer flexible plans and pricing to accommodate your company’s growth and associated costs. As your product catalog and business grows, these warehouses can adapt to your unique needs, and help you avoid long-term leases.
They Improve Your Service & Efficiency
Just because you’re a business owner, doesn’t mean you’re an expert on everything warehousing. What’s helpful about third-party warehousing is that the staff knows how to handle warehousing in the most efficient way possible. They’ll tailor their logistics approach to your business, and implement the faster and more reliable fulfillment processes that will make your customers happy.
They Help Save Your Business Money
While it may seem like handling your logistics on your own is the most affordable option, it can often be way more costly. Larger warehousing companies can combine your shipping volume and store it in a way that makes it easier and more affordable to ship. They can also provide you with a broader array of shipping options, which can provide your customers with more shipping options and save you big.
Final Thoughts on Using a Fulfillment Warehouse for Your Business
If you’re struggling to keep up with customer demands, or looking for ways to optimize your logistics effort, you should consider working with a third-party fulfillment warehouse. By doing so, you can avoid tricky leases, grow your catalog, save money, and satisfy customers with providing a better post-purchase experience.
Are you ready to ramp up your business efforts? Need help with your fulfillment needs? Get a fulfillment quote now!