Many businesses are surprised that their number one competitive advantage is the fulfillment of their customers’ orders and not the product range and exclusivity of the brand per se. It’s not even about the prices or the high-quality products. People value convenience above anything else now. So, that what you should focus on right now. You need to provide a convenient way for them to buy and receive your products, and you have to fast-track the shipment of these products.
However, when a business is expanding, it becomes harder for it to handle orders and fulfill the shipment of these orders on time. Delivering better customer service through quick deliveries takes time, effort, and money. Fortunately, you can now outsource fulfillment services to take this matter off your hands. This way, you can carve more time for operating the business and thinking of new and innovative ways to market your products.
How do you know that you have to shift to outsourcing your shipping services? When do you reduce your in-house shipment services? When is the right time to do this?
Things Are Becoming Heavier Literally
Small items are easy enough to ship. You need a motorbike to ship these items to nearby areas. A sedan will be used if you need to cross state lines. However, what happens if you start selling bigger items? You will need heavy haul trucking services, the cost of which is not something your current business finance can cover.
It will be more economical for your business to outsource these services. Even big businesses depend on outsourcing to fulfill their customers’ orders once they need to ship big items. It makes sense for a smaller business like yours to do the same.
Fulfillment Costs Are Too High
In-house fulfillment will cost a lot of money in the long run. You need to provide benefits for your employees and give them office space and manage their time. This will cost a lot of money. Instead of keeping a whole unit of couriers, you can outsource this service to a third-party provider. It will not only save a ton of money, but you will also fulfill orders quicker than you would if you depend on in-house couriers.
Delivery Time Is Too Slow
Customers expect to receive their parcel a couple of days after ordering them. Some of them will even pay extra to ship the items on the same or next day. If your delivery time is slower than your competitors, there’s a good chance your customers will check out other stores. Your business will then suffer. The competitive advantage of a business is the fast fulfillment of orders. When your business cannot do that anymore, it’s time to outsource shipping services.
Your goal is to meet the demands of your customers. If you think outsourcing will fulfill the needs of your customers, then that’s what you should consider. The satisfaction of your customers is your primary concern, and what they are most concerned about is receiving their orders in time.
Expanding the Business
If you want to expand your business market, that means expanding all services related to the fulfillment of the orders. Are you sure that you can take on more orders? Will you be able to fulfill them on time? Expanding the business means also hiring more people, which will cost more operational costs. You will better facilitate the fulfillment of orders if you let a third-party provider handle these services.
Instead of spending an enormous amount of time making sure the orders are shipped on time, you can focus on marketing your business. You can think of more ways to become innovative and reach new markets. All the while, a third-party courier is delivering orders to your customers.
Lack of Warehouse Space
Most courier companies will also provide warehouse space for their clients. This will be of great help if you do not have enough storage facility for your products. They can store the items for you and wait for your instructions once these are ready to be shipped. This way, you will also be saving space in your own warehouse for more products.
You have to make the right decision for your business. You need to learn to let go of the other areas of your business. Finding a trustworthy shipping company that you can partner with is essential to your business. Ensuring that this courier partner will benefit the business is another thing you have to concern yourself about. The convenience and satisfaction of your customers depend on these decisions.