Order fulfillment is a critical aspect of operations for businesses in many industries. From aerospace and consumer electronics manufacturing, to e-commerce and subscription box retail, these businesses need efficient, accurate and cost-effective fulfillment services in order to maintain and grow.
Generally, order fulfillment is executed in one of three ways:
- Drop-shipping, where the manufacturer ships direct to the customer.
- In-house, where the seller fulfills orders on-site.
- 3rd party, where an off-site partner handles the fulfillment of customer orders. This is known as 3PL or Third Party Fulfillment.
Many companies choose to outsource their order fulfillment since this 3rd party management of the fulfillment process results in some key benefits to the bottom-line. Manufacturers don’t need to lease warehouse space for their inventory since the outsourced fulfillment partner handles this. By outsourcing, companies can enjoy more flexible overhead and labor costs, which enables them to grow more quickly. Often times, businesses that outsource their fulfillment needs find more efficiency and effectiveness with their business, while eliminating shipping errors and reducing overall costs.
Is it beneficial for your business to outsource order fulfillment?
When is it time to outsource this key aspect of your business?
Check out our infographic for more!