Are you ready to outsource fulfillment? There are a few key things to consider that help with the decision-making process. After you search for a cross-docking warehouse near me, consider your business’s current situation. Are you struggling to keep up with business growth? Or do you see that customer satisfaction is dropping? This article helps you identify the top signs indicating your company is ready to outsource this process.
High growth
Have you noticed that fulfillment takes much of your precious time? If you believe you can allocate the time and effort to things that truly matter in your business, then it is time to consider outsourcing. After all, you have a heavy workload, and logistics isn’t the only thing on your mind. The fulfillment companies handle the shipping and packing, so you can focus on marketing, product design, and boosting sales.
Rising fulfillment costs
Startups will use their resources as much as possible and avoid additional fees, which allows them to have control. However, at a certain point in their growth, they need to adjust their strategy to stay competitive. Outsourcing fulfillment like crossdock services is beneficial for growing your business and implementing the expertise and network that a fulfillment center offers.
The cost of outsourcing might be one of the worries for business owners. However, when you calculate the total costs needed to establish your own operations, things aren’t that bad. When you gather all labor, equipment, supplies, and facilities costs, you might be surprised to find out it is cheaper to outsource. On the other hand, outsourcing frees time and capital so you can focus on the things that matter in your business. Handing off the tedious and repetitive tasks to another company leaves you plenty of time to focus on growth.
Expensive shipping
If you talk with other business owners, you might pay too much for shipping. The harsh reality is that shipping is costly for small businesses. They don’t have the order volume to negotiate reasonable rates, so the shipping cost can sometimes consume the margin.
However, fulfillment centers have excellent shipping rates. They work with a large volume of orders, which means they have better terms for negotiating the prices. Startups and small businesses can take advantage of those prices when working with a fulfillment company.
Customer satisfaction is decreasing
When you start, picking items from an order is simple. You grab the items from the shelf, place them in the package, and add a label. But things get challenging when your business grows and you no longer offer a few products.
Today’s customers have refined requirements, which leaves no space for error. They want you to meet their expectations within the first order. However, with manual input, there is always room for error, no matter how well you know the inventory. Fulfillment centers have advanced inventory management systems, ensuring the order is picked correctly.
Lack of storage space
Predicting inventory can be challenging. If you don’t do it right, you end up with an overstuffed inventory and no room for more. Relying on a fulfillment center can help you predict inventory levels. With this, you can source enough products to satisfy the market demand without acquiring more warehousing space.
Final thoughts
If you’re experiencing problems related to order fulfillment, it can be a clear sign that you need a third-party option. Instead of wasting time and resources on tedious tasks, businesses can allocate them to growth and exploring new opportunities. Fulfillment companies can help enterprises to streamline their working process. In addition, they have the expertise to offer advice, better shipment options, and source cheaper packaging.
