When it comes to establishing a supply chain management (SCM) solution, companies can choose a variety of options. Given the competitiveness of global business, overseeing SCM is demanding and costly in numerous ways. Here we offer the top reasons to outsource your order fulfillment.
Flexibility. When a company partners with a third-party logistics provider (3PL), it can expand or downsize with fewer concerns about the impact on employees or customers. For example, if your company has strong seasonal fluctuations, partnering with a 3PL partner will help you manage those spikes and decreases in order volume effectively from both a staff and space scalability perspective. Working with an outside fulfillment partner also gives the company access to their resources and technology, which can extend company infrastructure.
Focus. By outsourcing order fulfillment, companies are better able to focus on their core business. Distribution is left in the hands of specialists, while the company can put more energy into building client relationships, developing new ideas, and improving their services.
Reduced costs. One of the biggest advantages eCommerce companies experience by outsourcing their distribution is reduced shipping costs. Your fulfillment partner should have negotiated rates with all major carriers that your company can take advantage of. Additionally, your company will save on overhead staffing costs as they will not have to spend their resources on hiring and training staff and building up an SCM department.
Additional Capabilities. The top 3PL partners offer additional value-add solutions their clients can take advantage of such as Contact Center, Accounting Services, Print & Mail and Comprehensive Reporting. By having these business operations handled by one partner, organizations can reduce costs and remove the hassles of working with multiple companies.
Technology. Most company IT systems concentrate on operations and finances rather than transportation and logistics. The IT system of a third-party logistics provider, however, focuses most on the solutions they provide to their customers, and is constantly being improved and updated.
PBD Worldwide offers a complete, customized order fulfillment solution for your needs. To learn more about SCM and improving logistics, contact us.