Should,You,Farm,Out,Your,Order business, insurance Should You Farm Out Your Order Fulfillment Services Or Devel
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Third party order fulfillment services are experiencing an increase in interest from major retail and ecommerce companies these days because they can accurately and quickly fill customer orders, but they can be expensive. Some companies simply aren't sure of the cost effectiveness of giving over certain duties and responsibilities to an outside vendor. By taking a hard look at the advantages and disadvantages of each approach, however, you can choose the system that works best for your company and its customers. Take a look at the pros and cons below to determine which route your company should take.Storage Considerations Loom LargeMany companies, particularly fledgling businesses and those with a lot of inventory, find it cost prohibitive to store too much of their product at one time, but run into trouble when they don't have enough of a product on hand to quickly meet the needs of customers. A third party specializing in pick, pack and ship services can alleviate this problem by having their own storage space that is significantly larger. You will have to pay for the storage fees, but it will be less expensive than having to increase the size of your own storage facility.Order Fulfillment Services Run On Their Own ScheduleSome services can provide you with extra shipping capabilities during rush periods such as the holidays, but they may also be attempting to give the same consideration to other companies who are using them as third party service providers. Be sure to ask whether a provider can add on additional shifts to meet your needs. If you do your own picking, packing and shipping, you'll have more control over whether to add a second or even third shift.Bulk Shipping RatesAn individual company may not be able to get the best rates for shipping services while third party delivery companies can negotiate a cheaper rate per package because shipping is their focus and they are doing massive shipments for a multitude of clients on a daily basis. These lower costs can be an attractive incentive for small to medium sized businesses that don't have the clout to negotiate a lower rate for themselves.Simplified E-Commerce SolutionsIf your product sales are handled entirely online without a bricks and mortar storefront, there is no need for your business to pay for a storage warehouse and shipping distribution center. A simple, small office may be all you need, keeping the costs down on a variety of fronts. If you're selling widgets, you can have them shipped directly from the manufacturer to order fulfillment services who will handle everything once the order has been placed on your website. Reputation And ControlOne potential down side to contracting with order fulfillment services is the hit your own company's reputation can take if the pick, pack and ship provider doesn't maintain a smooth operation. Complaints about poor packaging, inaccurate invoices, delayed shipments or damaged products will all have a negative impact on your company's reputation, not on your shipping partner. Because you're giving up control of the process, you're also giving up some control over the results and your reputation.Weighing the pros and cons outlined above can help you determine whether in-house or third party order fulfillment services are the right solution for your business. Article Tags: Order Fulfillment Services, Order Fulfillment, Fulfillment Services, Third Party
Should,You,Farm,Out,Your,Order