In business, the virtues and drawbacks of a particular idea or solution always come down to the bottom line: how much can you save, how much is it worth, what’s the profit motive? By looking at the bottom line of outsourcing your fulfillment needs to a third party independent service company, you can not only satisfy your company’s bottom line, you can actually make it bigger. Because outsourcing your back end responsibilities doesn’t just save you money, it gives you the power to grow your business into a more powerfully profit-making concern.
The Money You Save With Outsourced Warehousing
Think about the many different costs associated with warehousing. Assuming for a moment you even have the warehouse facility that your business currently needs, at some point in its growth you’ll have to replace that facility with something larger and more versatile. You’ll have the costs associated with finding your new fulfillment center, coupled with the costs of buying or leasing it.
Once you’ve shifted your product inventory into the new facility, you’ll have to pay the utilities, the rental or mortgage costs, and any applicable taxes. You’ll probably also have to pay water and sewerage, too. For a larger order fulfillment facility, these expenses can become quite sizeable. But by outsourcing your warehouse needs to a third party logistics company, you avoid all these costs while at the same time increasing your company’s order processing efficiency and storage capability.
The Money You Save With Outsourced Processing and Shipment
Money saved in this respect is largely a matter of staffing and expertise. Because third party independent fulfillment houses employ highly trained shipment and efficiency experts to conduct their day to day operations that higher level of proficiency is made available to your business through the outsourcing arrangement. No more having to hire and train new workers on a regular basis, or experiencing the vagaries of untrained shipping processing and the returns and refund requests that accompany them. Instead, you lower your operating costs while improving performance. It’s a win-win situation for your company.
How To Spend All That Money You’ll Save
Once your outsourcing is in place, you’ll be able to devote renewed energy and all that extra revenue towards any number of business-growth tasks, including building your company’s online store, developing and implementing marketing strategies and initiatives, and refining your company’s profit model and market presence.