Why you shouldn’t fear outsourcing fulfillment
Yes, outsourced product fulfillment is not for everyone, but you’re probably staying away from it for the wrong reasons. The most common one being “it’s too expensive.” It certainly can be if you don’t prepare properly.
A lot of the reasons you may avoid outsourcing fulfillment is more rooted in myths heard through the grapevine. Read on as we unravel some of those myths and quell the fears you may have. At the end we want you to see how it could be the right fit for you!
I can do it myself
Nothing more satisfying than good ol’ DIY, especially when it can cut your burn. We’re all for cost reduction, only when it can maximize your value. If it hinders your operations, however, you’re spending more money and need to rethink your ops.
You have an awesome product and it should damn near sell itself, right? Sure, with a little marketing. Now you’re dealing with that, increased production, hiring new personnel, etc. as you grow. Your operations have grown more complex and you’re still attempting to fulfill orders on your own.
This will slow you down if it hasn’t already. Q4 will be rather painful and a rude awakening as managing all of this can be overwhelming.
At this stage, tracking shipments, inventory management, packaging, etc. should be left to those whose sole purpose is to do just that. Why not trust someone who’s been through the fire and knows the ins and outs of the process?
Man, it’s too complicated to deal with!
Yes, simplicity is the name of the game and we make sure to keep the process just so. This doesn’t mean the details should fall by the wayside and fulfillment does have intricacies that can’t be ignored.
So long as you have a basic understanding of how things operate, then everything else is manageable. Ignoring the different components can seriously harm your business though.
Maintaining an effective supply-chain is essential for your success. When you pass off the responsibilities of this highly-detailed operation to someone that knows what he’s doing, then you don’t have to worry much at all.
My company is not that large
This misconception is pretty common. You don’t need to be the size of a Fortune 500 company to need an efficient fulfillment process.
Managing an e-commerce business that has consistent growth of customers is grounds to call for a 3PL partner. E-commerce gives your customers anywhere in the world access to buy your products and you should be able to satisfy their needs.
I don’t ship a lot of volume
If you have a high-volume product, then outsourced fulfillment is definitely for you. It’s okay, however, if you don’t ship a lot yet. You probably have volume spikes: maybe because your product’s seasonal, a special event is occurring, etc.
You’ll benefit with a 3PL partner because you’ll be able to secure rates you couldn’t get on your own and that’s a big deal for your cost sheet. A 3PL is also more equipped to deal with rapid order spikes and accommodate you accordingly.
I don’t have the money for this
Ah yes, the Grand Poobah of myths. We understand reducing costs is important, but you can’t let it cloud your vision. Yes, you’re making an investment by paying an outsourced fulfillment partner.
And like a good investment, this will bring you a significant ROI for the entire lifespan of your company. You lower your operating costs over the long run and it gives you more room to scale up.
A proper 3PL partner will be just that, a partner. One that has your best interest in mind: helping you grow without compromising your economic situation.