Whether you have a manufacturing business that ships goods to individual customers and/or retail outlets, or an e-commerce business that ships items to people and businesses that buy online, shipping fulfillment will be an important part of your operation.
Many companies, especially small businesses, do their own shipping and fulfillment, as well as their own warehousing of products. But outsourcing shipping and fulfillment has become an increasingly popular option, and one that every business should consider.
If you decide not to fulfill orders in-house and do your own shipping, you can either hire a company to fulfill the orders for you, or work with a specialist logistics company that can warehouse your finished goods and then package and ship them for you.
While there is no doubt that in-house packing and shipping is considerably cheaper and potentially a lot more flexible that shipping fulfillment services would be, if your business can afford it, the extra spend involved will have long-term benefits.
Benefits of Outsourcing Shipping Fulfillment Services
Apart from the fact that you don’t have to lease a warehouse for storage and employ staff or buy machinery to package products, an experienced third party logistics company will already be set up to fulfill these functions efficiently and cost effectively. Because this is what they specialize in doing, most third party logistics companies operate on a much larger scale than any small to medium business. This, together with the experience an established company would have, means they will be more efficient than the average small to medium business in terms of storage, packaging and shipping. Their customers (potentially you) benefit from this experience and efficiency.
Instead of leasing a warehouse that will have to accommodate projected growth (which implies a future need for more space), many logistics companies will be flexible in their pricing. For instance many will let customers pay according to the space they use every month. So if you sometimes need more space, but not consistently through the year, you don’t have to rent what you may need and have empty areas during non-peak months. This can be a huge advantage when inventories drop during those often unpredictable, lean months.
Similarly, the fact that you won’t need additional staff to pack products, package them and also manage warehouses and packaging plant also cuts costs. It saves time as well, because you don’t have to hire or manage these extra employees. The time you save can be spent more effectively, expanding the business and ensuring that quality is maintained.
Even highly specialized businesses can benefit from using third party logistics companies for shipping fulfillment and packaging services, particularly if they offer customized services.
Once you make the decision to outsource packaging and shipping fulfillment services, and contract a reputable company to do it for you, virtually all you have to do is ensure there is always sufficient inventory available. However it is important to choose a third party company that is reliable and competent. Cost is important, but it certainly isn’t the only factor to consider.
Technik Packaging Services likes to partner with clients to ensure that the service they get is exactly what they need. So talk to us about your unique needs and we’ll collaborate to see how we can work together to improve your packaging operations and logistics.