Managing volatile supply chains and fulfilling online orders with speed and efficiency can present many challenges for your ecommerce brand. These challenges can lead to increased costs, frustrated customers, and decreased profits. But it doesn't have to be this way.
Partnering with a third-party logistics (3PL) provider with order fulfillment services can improve nearly every aspect of your operations. Your company can finally say goodbye to the painful headaches associated with inventory storage, order fulfillment, and supply chain management.
In this article, we'll explore the benefits of using a 3PL as your order fulfillment partner and how they can help your ecommerce brand succeed. So, if you're tired of struggling with logistics, keep reading to find out how you can revolutionize your order fulfillment process.
WHAT ARE ORDER FULFILLMENT PARTNERS?
An order fulfillment partner is a third-party logistics (3PL) company that provides comprehensive order fulfillment services. Most order fulfillment partners have the expertise, resources, and technology needed to store, manage, and deliver your products to customers. They help ensure your order fulfillment processes run at peak efficiency, deliver an exceptional customer experience, and offer opportunities for growth.
WHAT ARE THE MAIN LOGISTICS HEADACHES AND HOW CAN A 3PL STOP THE PAIN?
Logistics headaches can arise due to various factors that involve managing inventory at scale, building a robust supply chain infrastructure, leveraging technology correctly, and handling customer support. Partnering with a third-party logistics (3PL) provider for order fulfillment can take this load off your shoulders, effectively reducing your stress levels and letting you keep your sanity. This next section will explain the most common headaches associated with order fulfillment and the solutions a 3PL can provide your company.
INVENTORY MANAGEMENT
Headaches:
Maintaining accurate inventory levels is crucial for your business, but it can be challenging if your company sells a high volume of products. A large amount of orders makes your order fulfillment process susceptible to errors. Overstocking or understocking can lead to increased costs, stock shortages, and lost sales.
3PL Solution:
An order fulfillment partner can provide real-time inventory management and tracking using advanced technology and analytics. For example, SEKO IMS is a web-based inventory management system designed to manage high-volume order fulfillment. SEKO IMS ensures products are in stock and ready for shipment when customers place an order. This type of inventory management system helps reduce stock shortages and backorders and improve order accuracy.
STORAGE AND WAREHOUSING
Headaches:
A disorganized warehouse layout or incorrect product labeling can cause confusion or errors leading to a slow picking and packing process. Second, limited storage space can lead to overcrowding. This can increase the risk of damage to products, create safety hazards, and hinder the ability to move items efficiently. Third, inadequate storage and warehousing can limit your business's ability to scale operations and meet growing demand.
3PL Solution:
An order fulfillment partner often uses technology to track inventory and automate picking and packing to improve storage and warehousing efficiency. A 3PL also employs trained and experienced staff who can ensure that products are correctly stored, organized, and quickly retrieved when needed. Additionally, 3PLs typically have access to a network of warehouses and distribution centers. This network provides your business with flexible storage options to quickly scale up or down to meet demand.
SHIPPING FULFILLMENT SERVICES AND DELIVERY
Headaches:
Delays in the supply chain, lost or damaged shipments, and incorrect delivery addresses can be a source of logistical problems. This can lead to frustrated customers, increased costs, and negatively impact your brand's reputation.
3PL Solution:
A 3PL’s robust supply chain infrastructure can often withstand disruptions in the supply chain. A 3PL’s advanced tracking and monitoring systems ensure packages are delivered on time and to the correct address. This can help your ecommerce brand provide a positive customer experience.
CUSTOMER SERVICE
Headaches:
Dealing with customer inquiries and support requests can be time-consuming and challenging for businesses, especially during peak periods. This can lead to longer response times and poor customer service. According to research, companies incur losses of around $62 billion every year due to poor customer service.
3PL Solution:
A 3PL can provide customer service support and resolve issues on behalf of your business. Since 3PLs are experts in logistics, they’ll be better equipped to handle any inquiries customers may have about their orders. This can free up time and resources you can redirect to other areas of your business.
TECHNOLOGY AND AUTOMATION
Headaches:
If your business doesn’t have an IT team dedicated to logistics, it can be a daunting task to stay on top of the latest technology and automation tools. Failing to keep up with the latest technological advances can result in inefficient processes, higher costs, and falling behind the competition. Outdated systems can cause delays, errors, and other issues that can damage your company's reputation and bottom line.
3PL Solution:
A 3PL can provide various solutions to help your company overcome tech-related order fulfillment challenges. First, a 3PL can usually integrate with your business's existing technology, such as an e-commerce platform or warehouse management system. Second, 3PLs can leverage automated picking and packing systems and robotics to increase efficiency and reduce errors in the order fulfillment process. Third, data analytics services can also help your business gain insights into its order fulfillment operations, forecast demand and identify areas for improvement.
WHAT ARE THE KEY BENEFITS OF OUTSOURCING ORDER FULFILLMENT TO A PROFESSIONAL PARTNER?
Outsourcing order fulfillment to a third-party logistics (3PL) provider can be a wise choice for businesses looking to reach that next level of growth. Many companies that partner with a 3PL see improvements across the board in their key performance indicators (KPIs). Whether you're a small start-up or a large ecommerce brand, the benefits of a professional fulfillment partner can make for a valuable investment. Let’s take a closer look at those benefits now.
STREAMLINE YOUR ORDER FULFILLMENT AND SHIPPING SERVICES
A professional fulfillment partner has the expertise, technology, and resources to streamline your processes, making them more efficient and effective. For example, a 3PL can use automation and software to optimize warehouse layouts, reduce product handling times, and increase inventory accuracy. These strategies lead to faster order fulfillment times, enabling your customers to get their orders quicker.
TAKE ADVANTAGE OF BULK SHIPPING RATES
When your business partners with an order fulfillment partner, they can take advantage of bulk shipping rates and economies of scale. 3PLs have already negotiated these bulk shipping rates with carriers or have their own transportation network giving you instant access to possible cost savings.
A professional fulfillment partner can also help businesses select the most cost-effective shipping options, optimize shipping routes, and reduce the risk of errors or delays in shipping. These efforts can add significant cost savings for your business over time.
OPPORTUNITIES FOR GROWTH
An order fulfillment partner can provide your business with the flexibility and agility to meet changing demands. Whether your business experiences a sudden surge in orders during peak periods or steady growth over time, a 3PL can help scale your operations to match market conditions.
OPTIMIZE INVENTORY MANAGEMENT
An order fulfillment partner can help your business avoid stockouts and maintain proper inventory levels to reduce the risk of missed sales. Preventing stock shortages helps ensure that your customers always have access to the products they need. This also prevents your customers from discovering a competitor. Moreover, your business can accurately track inventory levels, improve order accuracy, and optimize product replenishment with your fulfillment partner’s inventory management system.
FOCUS MORE ON KEY BUSINESS INITIATIVES
Delegate the time-consuming tasks of inventory management to your order fulfillment partner. Outsourcing tasks such as picking, packing, shipping, and processing returns allows you to focus on other business initiatives. As a result, your business can increase productivity, improve performance, and build stronger customer relationships.
Furthermore, outsourcing order fulfillment allows your business to reduce the need for capital investment in warehousing, shipping, and personnel. This frees up valuable resources you can strategically reinvest in other business areas. You can invest in enhancing your marketing efforts, developing new products, and achieving optimal growth.
WHAT ARE THE MOST IMPORTANT FACTORS TO CONSIDER WHEN CHOOSING AN ORDER FULFILLMENT PARTNER?
Outsourcing order fulfillment to a third-party logistics (3PL) provider can significantly impact your business's success. However, with so many 3PLs available, choosing one that best fits your ecommerce brand is essential. There are several key factors to consider to ensure that you select the right 3PL for your business. Let’s explore these key factors in greater detail.
LOCATION AND SHIPPING NETWORK
Consider the location and shipping network of your 3PL. You must ensure they can manage and deliver your products quickly and cost-effectively. SEKO enabled Manscaped to provide direct-to-consumer deliveries, facilitate global expansion, and support innovation. Read the case study here: Manscaped Case Study.
ORDER FULFILLMENT OPTIONS
Evaluate the range of fulfillment options offered by your 3PL, including storage, shipping, and returns management, to determine if they meet your business needs.
INVENTORY MANAGEMENT CAPABILITIES
When choosing a 3PL, it's important to prioritize those that provide real-time inventory management and tracking technology to ensure no issues arise in product availability.
CUSTOMER SERVICE
When selecting a 3PL, evaluate customer service quality, average response times, and available support services.
SCALABILITY
Ensure that your 3PL can scale its operations to meet changing demand and support your business as it grows.
COST STRUCTURE
Evaluate the cost structure of your 3PL. Shipping and handling fees should be your primary concern to determine if the costs fit within your budget.
REPUTATION
Consider the reputation of your 3PL and their track record of delivering quality logistics services to their clients.
WHY HIRE SEKO LOGISTICS AS YOUR PROFESSIONAL FULFILLMENT PARTNER?
SEKO offers professional fulfillment services for improved logistics. As a leading logistics and order fulfillment service provider, we can help your business overcome the headaches caused by today’s ecommerce marketplace.
With a network of facilities worldwide and a commitment to providing the highest level of customer service, SEKO Logistics can assist your business in optimizing its operations and reaching new levels of growth.
Here are just a few reasons why your businesses should choose SEKO Logistics as your order fulfillment partner:
- Global Reach: With 15 primary hubs across 40 countries, SEKO Logistics can handle orders from anywhere and deliver products to customers globally.
- Inventory Management: We provide real-time inventory tracking with SEKO IMS ensuring that products are in stock and ready for shipment.
- Scalability: SEKO Logistics can scale with your operations to meet changing demand and support your business as it grows.
- Customer Service: We’re committed to providing the highest level of customer support, and our expertise gets issues resolved quickly.
- Reputation: SEKO Logistics has a proven track record of providing quality logistics and fulfillment solutions to businesses of all sizes.
Choosing SEKO Logistics as your fulfillment partner allows you to say goodbye to logistics headaches and focus on what you do best: growing your business. Get in touch to learn how SEKO can help your business soar to new heights.
