Efficient and reliable fulfillment operations are essential for the success and growth of ecommerce brands in today's competitive business landscape. For brands struggling to keep up with demand while maintaining customer satisfaction, managing fulfillment operations and order logistics can feel impossibly complex and time-consuming.
One of the easiest and quickest ways for brands to improve their fulfillment operations is to outsource them to a trusted third-party logistics (3PL) provider. By outsourcing the fulfillment side of their business, brands can put more focus on their core competencies, reduce costs, improve efficiency, and ultimately enhance their customer satisfaction.
So, let’s take a closer look at some of the benefits growing brands can experience by partnering with a 3PL.
Enhance Supply Chain Efficiency
A reliable 3PL partner can play a crucial role in streamlining supply chain operations. Most reputable 3PLs make significant annual investments in technology that ensure operational efficiencies they can pass onto their customers through cost savings and data insights. By leveraging the expertise and advanced technology systems of a 3PL, brands can improve their freight and shipping costs, more efficiently store and sort their inventory, and maintain oversight of their products from the manufacturer all the way to a customer’s doorstep.
Improve Cost Savings
One of the primary benefits of working with a 3PL provider comes in the form of cost savings. In addition to better freight rates, 3PLs can offer lower facility and equipment costs, as well as the potential for multi-node order distribution. Rather than independently fronting a ton of capital to build out a warehouse with all the automated technology necessary for efficiency, partnering with a 3PL gives brands access to the expertise and facilities of a team of logistics professionals who are already set up to meet their needs. The cost savings of outsourcing rather than establishing a distribution process from scratch, can free up resources for brands to invest in other areas of their business, such as marketing or product development.
Expand Geographic Reach for Faster Shipping
Expanding in-house fulfillment operations to multiple locations can be a costly and resource-intensive endeavor. Even some of the largest brand companies have opted out of maintaining their own fulfillment networks in favor of outsourcing. Partnering with a 3PL with multiple locations, or one with a fourth-party logistics (4PL) network to expand its footprint, allows brands to leverage the 3PL's network of fulfillment centers strategically placed around the world. This enables brands to minimize shipping zones, reduce shipping costs, and decrease transit times. By storing inventory closer to the end consumer, brands can offer faster shipping options, enhancing the overall customer experience and satisfaction.
Better Allocate Resources
The core competencies of most brands are their product development, marketing, and customer service. By outsourcing logistics and order fulfillment to logistics experts, brands can allocate more time, manpower, and other resources to the activities that directly contribute to their business growth. This division of labor ensures that each aspect of the business receives the necessary attention and expertise, leading to improved overall performance.
As brands grow, their fulfillment requirements become more complex and demanding. Scaling in-house fulfillment operations can be challenging, expensive, and often requires new skill sets and technologies in which brands won’t have the time or money to invest. 3PLs offer scalable solutions that can be tailored to the specific needs of the brands they serve. They also have the infrastructure, resources, and expertise to handle fluctuating order volumes, adapt quickly to changes in demand, and can provide the necessary flexibility to accommodate seasonal peaks or unexpected surges in orders.
Brands looking to be competitive in their marketspace, keep up with demand, and maintain or improve customer satisfaction shouldn’t have to waste time learning about and building an entire logistics operation. Partnering with a trusted 3PL provider allows brands to optimize their operations, reduce costs, and deliver exceptional customer experiences without the added cost and burden of running a fulfillment business on top of their brand. Embracing the support of a 3PL allows brands to streamline their logistics processes, increase customer satisfaction, and position themselves for sustained growth in an increasingly competitive market.
Are you looking for a 3PL to partner with and outsource your fulfillment operations? Extensiv’s Fulfillment Marketplace provides you with an entire directory of pre-vetted 3PLs and the guarantee of industry experts to guide you through the process of matching and negotiating with potential 3PL partners. Start your search here.