In the modern business world, it’s important to be as efficient in every aspect of business operation as possible. One good way to do this is to outsource shipping to a fulfillment center. This will help you to cut costs and improve the quality of an important element of any business, to deliver materials or products.
There are plenty of reasons why companies who deliver items through the mail or parcel delivery methods should consider this move, such as reducing labor costs, reducing building rent and maintenance fees, and increasing the efficiency of order fulfillment.
Utilize Your Building Space for Another Purpose
Outsourcing your shipping to a fulfillment center allows you to use your buildings for something other than storage. One of the biggest hindrances to business growth is sometimes a lack of space.
The flexibility of being able to lease precisely the storage space that’s needed for your business operations, and also to routinely increase or decrease the space and the corresponding expenditures when needed can save your company a lot of capital. And there are other factors to consider.
Another benefit of using e-commerce fulfillment services is that you could save a considerable amount of money on your labor costs. Every business owner or manager involved with warehousing and shipping products knows that a company can very quickly lose money by having personnel with downtime.
Imagine being able to share warehouse and shipping workers with several other businesses. This would greatly reduce costs and increase efficiency. Then add to this scenario shipping staff that is never too busy to pick and pack your orders quickly. This is why you should outsource warehouse and shipping needs to a fulfillment center.
Efficient Handling of Supply Chain
Everyone knows that workers handle their tasks most efficiently when they specialize, are highly trained and experienced in the specific task they are to perform. This can be seen in manufacturing since the introduction of the assembly line. Outsource shipping to a fulfillment center, and you will see much the same thing happen about your delivery procedure.
Different staff is trained to sort, inventory, pick, pack, and ship your products, and every individual is an expert in their job. By organizing the warehouse into each part of the process works more efficiently. The check and balance system that goes hand in hand with this strategy also leads to fewer mistakes and inaccuracies in shipping.
If the right products are packaged properly and sent off on time, customers receive their merchandise on time and in good condition, leading to happier customers and more repeat business.
Improved Quality & Reduced Cost
Of course, you could always choose to carry on shipping the old-fashioned way, incurring your expenses for labor, materials, building maintenance, and the like, but why should you want to? In the modern business world, you need to be ahead of the competition at every turn.
Save yourself money, time, and headaches and let someone else take care of your shipping for you so that you can focus on the things that truly make your company grow.
A better option may be hiring a third-party logistics provider (3PL) or Fulfillment Company to warehouse your product, package your merchandise, and arrange the shipping. By contracting with an outside fulfillment company, you eliminate or reduce any headaches involved in getting your product into the hands of your customers.
Several advantages to using a fulfillment company are a sharing of cost. The cost of warehousing the product is shared by multiple clients. Because the fulfillment company ships in bulk, it will receive a preferred rate from the national carriers.
Because the fulfillment company does ship in bulk, the cost of shipping material (cardboard, labels, etc.) is spread out between the clients, helping you reduce costs. When shipping your merchandise, its appearance when it arrives is almost as important as the item inside.
A well designed and professionally boxed product says a great deal about your company. A fulfillment company will have the right box and shipping labels for your product.
Depending on the items that you distribute, these companies can provide services that include assembly service. Employees are hired by the contract assembly company, so you don’t have to. You will be paying as needed, freeing you from payroll costs. Perhaps, you need an idea turned into a manufactured project.
Rather than finding a space to rent or purchase and secure the manufacturing equipment needed, why not hire a contract manufacturing company that has the equipment and employees to convert your idea into a finished manufactured product?