Businesses come and go every day, especially in these turbulent economic times. With so much competition constantly vying for a dwindling pool of consumers the pressure to succeed or even just keep a business above water is likely at an all-time high, or at least the worst it’s been for many decades. For faltering businesses looking to trim operating costs while improving productivity and order efficiency, outsourcing their logistical management and order fulfillment obligations to a third party provider service company may offer a respite or even salvation. Because by outsourcing the business’ back end to experts in its field, the struggling business can concentrate on developing the front end. It’s a win-win situation. Order fulfillment works for both the provider and the client by broadening the customer pool while at the same time making day to day operations less expensive.
Basically, when you outsource your fulfillment and logistics management needs to a third party independent provider, it’s in many ways as if you physically picked up and moved your business’ back end operations to a new location while upgrading them at the same time. Once an outsourcing fulfillment agreement is reached, your inventory is shipped directly to the service provider, who keeps the products stored inside their own climate controlled, electronically secure facility. You don’t have to worry about deliveries anymore, or keeping and maintaining your own storage space. The physical costs alone for storage facilities can make for particularly daunting monthly expenses, so this service alone is a fantastic value for small business as well as home based and ecommerce efforts.
Once your product inventory is safely accepted into the fulfillment service company’s climate controlled warehouse it’s kept until needed for an order. When needed, the service provider’s trained and efficient staff prepare the product sample for shipping, including packaging in secure materials and determining the necessary postage or shipping fees. Packages are sent using your company’s business address and letterhead on the shipping label, giving your business the appearance of a much greater size than it may actually be.
Fulfillment service companies work on a percentage of products processed and shipped, meaning they take part of the profits from every moved on your behalf. The percentage is discussed and agreed upon beforehand, and both parties sign a contractually binding agreement that cements the partnership. Experts encourage businesses to shop around and do research to find the right fulfillment service company for their specific needs.