There are many factors to consider if you ship your own products in-house. As your business grows, you may consider hiring a third-party fulfillment company (3PL) to tackle the bigger aspects of your business. The way you manage your in-house fulfillment can have serious ramifications, good or bad. Even one weak area can directly affect your brand and your reputation with your customers. Here are some of the biggest fulfillment mistakes to avoid, and why a 3PL partner will benefit you.
Companies that choose to partner with a third-party logistics (3PL) provider need to maintain a positive and healthy relationship with them to ensure the overall success of the venture. Your 3PL relationship can benefit you in many ways, including streamlining your supply chain operations and helping you focus on other aspects of your business. So, to get the most out of your 3PL provider, here are some tips to maintain a successful partnership.
Today’s business world is fast and furious, and running an e-commerce company requires you to stay on top of everything to continue generating revenue and growth. Even if you run a company that involves shipping and fulfillment for a brick-and-mortar store, you still need data to make the right decisions. If you run low on inventory or make preventable shipping mistakes, it could slow down your operations and lead to wasted time and money. To prevent this, you need accurate and real-time fulfillment reports. This information will help you forecast issues, prevent them from happening, and view where your products come and go to make the right decisions. Here’s how receiving fulfillment reports from a 3PL provider can help your business.
A fundamental element of your business involves the process of receiving products, packing, and shipping. Coordinating these tasks requires a considerable amount of effort, and mastering this system is the only way to provide a positive customer experience. The main question to ask yourself is whether you should manage the process with in-house fulfillment or outsourced fulfillment centers.
Choosing In-House Fulfillment or Outsourced Fulfillment Centers
Depending on the size, revenue, and manpower of your business, you may require extra help. Although there are benefits to keeping fulfillment under your roof, it can take time away from more important aspects of your business. Instead of working yourself to exhaustion managing your warehouse, you may be better off growing your customer base and focusing on marketing and sales. Outsourced fulfillment centers can make your life easier and help your business run smoother. Here are some ways outsourced fulfillment works better than in-house fulfillment.
When creating an order fulfillment RFP, or Request for Proposal, there are several key points of information you need to include. A third-party logistics (3PL) RFP can help you narrow down the best order fulfillment partner so that your warehouse management needs can be met. Sending an RFP is one of the best ways to find out what each company offers, what their corporate culture is like, and whether they can manage your fulfillment solutions. It also helps you clearly communicate between your company and potential partners so you can make the best and most-informed decisions.