Outsourcing has become a major trend in the business sector in the 21st century. Some of the main reasons why firms outsource services include lowering labor and operational costs, focusing on their core business processes, internal resources crunches, and mitigating associated risks. If you run a business but don't have a warehouse or distribution facilities, you can also outsource fulfillment services.
What Are Fulfillment Services?
To fulfill is to deliver goods to customers. Today there are many fulfillment providers who receive a particular order, pick, pack, and timely ship it on your behalf. These providers also schedule and coordinate shipment pickups.
Why Should You Outsource Order Fulfillment Services?
Fulfillment services are not meant for startup firms only. Even big companies should consider outsourcing fulfillment services to improve operational efficiency and reduce infrastructure costs.
Here are four ways how your business will benefit from fulfillment services:
1. Reduced Operating Costs
If your business is international, order fulfillment could be your main headache. However, fulfillment services simplify everything. For instance, you don't need to hire, train, and manage delivery workers. You are also saved from other order fulfillment costs, such as:
- Product insurance
- Warehouse rent
- Climate control
- Security measures
- Building insurance
2. Lower Shipping Costs
Shipping a product is a complex and expensive process. Without capital and the right infrastructure, shipping can be a real problem for most firms. However, you don't have to worry about high delivery costs when you engage a fulfillment services provider.
Studies show that outsourcing order fulfillment services save merchants up to 35% of the total shipping costs. Reputable transporters have facilities, technology, and staff overseas and within the country. So, you can enjoy bulk delivery discounts when you engage them.
3. You Enjoy State-of-the-Art Technology
Shipping consumer goods requires high-level technology-aided efficiency. As a sole entrepreneur, adopting emerging technologies might be too expensive for your business. If you outsource order fulfillment services, you enjoy modern shipping technologies, such as:
- Automated trucks and ships
- Smart shipping with the IoT
- Robotic processing systems
- Technology-aided inventory management
- Item tracking
4. You Can Relax and Focus More on Core Business Processes
Since shipping is complex, it can be time-consuming and stressful. You have to continuously worry about hidden fees, damaged products, and lost packages. You will also have to deal with tedious paperwork and tax issues.
Why don't you leave shipping to the experts and focus on your core business processes? By outsourcing fulfillment services, product delivery and associated issues are delegated to someone else, leaving you with time to strengthen your core competencies.
The Bottom Line
You already know the essence of delegation. Sometimes, you also need to let someone else manage the entire product delivery process on your behalf. Consider outsourcing your shipping and packaging needs to a fulfillment service.