Step 1
Are You Ready To Outsource Fulfillment?
The decision to outsource fulfillment is a significant one, impacting your entire supply chain and customer experience—which is scary. But it is also a natural progression, where most retail companies with more than 100 people, and over 10,000 orders per month generally outsource their logistics. But it can also make sense for companies with as little as 15 people and 100 orders a month.
While there’s no one-size-fits-all answer, several key factors indicate you might be ready to leverage a 3PL provider:
Time Constraints
Are you, or your team, spending a significant portion of your time (several hours a day or week) on packing and shipping orders? Do you need those valuable resources focused more on core business functions like marketing, product development, and customer service?
Growth Spurt
Is your business experiencing rapid growth, exceeding your current in-house fulfillment capabilities? Outsourcing allows you to scale your fulfillment infrastructure seamlessly without significant capital investment in warehouses, equipment, or labor.
Partner Pursuit
Do you want to grow your business alongside a partner that supports you? Are you looking for trusted expertise to guide you as your operation grows?
Storage Blues
Are you running out of space to store your inventory? A 3PL provider can offer a network of strategically located warehouses, allowing you to optimize storage and fulfillment efficiency.
Data Blindspot
Do you lack the resources or expertise to leverage data science and AI for optimizing your fulfillment network? Leading 3PLs invest heavily in these technologies, providing you with access to advanced tools for forecasting, inventory management, and dynamic routing.
Delivery Delays
Have your on-time delivery rates slipped below a consistent threshold (e.g., 98%)? Are you looking to offer free 2-day delivery? A 3PL can offer a robust logistics network and expertise in efficient order fulfillment, leading to faster deliveries and improved customer satisfaction.
Cost Conundrum
Are your fulfillment costs unpredictable or steadily rising? Partnering with a 3PL can bring economies of scale, potentially leading to significant cost savings through negotiated carrier rates and efficient warehouse operations.
2024 Fulfillment Guide Complete Outline
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