When most companies are in their infancy, an order fulfilment strategy is one of the last things on their minds. Instead, these new businesses are primarily focused on keeping the lights on and making more sales. Orders are either shipped in-house, or through a major logistics provider, and doing either works fine when volumes are low.
As companies begin to grow, however, what worked before may no longer be the most effective way to get orders to customers. That’s because in general, the higher the volume of products being shipped, the less effective in-house fulfilment is. Handling order management and shipping internally means building out warehouses, hiring people to manage them, and spending additional time handling customer service nightmares like reverse logistics.
If you’ve poured over the numbers and found that your business spends a significant amount of resources on order management, it may be time to consider switching to a third-part fulfilment company. By streamlining your order fulfilment, these organizations can often reduce your logistics expenses by 30% or more.