Outsourcing fulfilment is a big step, especially if you’ve never done it. It’s not uncommon for brands to put it off, content to muddle through until things become unmanageable.
Unfortunately, by the time things get that far, you’ll likely have already damaged your brand reputation.
It can be hard to know when to outsource, particularly if you’re getting by. To help you determine whether now is the right time, we’ve put together a list of signs that may indicate it’s a good idea to consider outsourcing.
In this article
Outsourcing might be for you if…
You’re growing rapidly
Growth is exciting but can be challenging to manage. While it’s great to see the fruits of your labour paying off, suddenly you have loads more to deal with, and the stakes of making a wrong turn can be harsher.
Outsourcing fulfilment can make growing pains more manageable. You don’t need to worry about scaling up your operations yourself. There’s no need to train up tonnes of new warehouse staff or invest in infrastructure and equipment.
An experienced fulfilment partner already has those bases covered, so you can meet the increased demand and challenges head-on without excessive stress.
Errors are becoming more frequent
We’re all human, and mistakes happen. However, if errors occur often, they can damage the customer experience and your brand’s reputation.
On the fulfilment side, these errors usually manifest as inaccurate orders, late shipping, and increased returns. The decline can also be represented by an overall fall in standards, like missing those personalised flourishes or rushed and untidy packing.
If this sounds like you, a fulfilment partner should have the headcount, infrastructure and expertise to eliminate those problems quickly.
Space is an issue
Operational space is finite, and it can be challenging to keep moving as you grow. Moving to a new warehouse interrupts your operation, but overfilling a space will lead to inefficiencies.
If you’ve run out of space and are considering the next steps, moving your stock to a 3PL will mean you’ll never need to worry about it for as long as you’re with them.
You can then free up your existing space for a different purpose or eliminate it entirely and save some money.
You’re paying too much for shipping
Shipping to your customers is a considerable expense and can eat into your profits. You can’t always pass the cost onto your customers, especially if you’re competing with other brands on price.
If you’re shipping a lot of orders (300 plus per month) and those shipping costs are becoming a problem, working with a 3PL could help.
Economies of scale mean that 3PLs often have highly competitive rates from their carrier partners, and can pass those cost savings on to you. They may also have economic services that aren’t available to smaller brands and carrier managers who negotiate the best rates on your behalf.
Seasonality is hitting you hard
The most critical time of year for any brand is during peak periods. For many, this time comes during Cyber Week and the lead-up to Christmas. Other brands have peaks at different times of the year, like the start of summer or through the autumn.
Wherever your peaks are, and however frequent, it can take a lot of work to manage them effectively. Having the optimal amount of resources at the right time is hard; sometimes, external factors make it impossible.
If your peaks are extreme, negatively impact your customers, and you dread them coming around, it might be time to outsource. 3PLs can scale up and down quickly, so you can rest easy knowing that customer needs will be met, regardless of how busy your Black Friday is.
You’ve no time for other things
eCom business owners need to wear lots of hats. Fulfilment is only one. Other hats include product development, marketing, networking, customer service, administration, and the list goes on.
You also need to have a life outside of business, too. Even if you’re a workaholic, too much work leads to burnout, and burnout leads to stress, apathy, and decline. You need time with friends and family, your hobbies, or just to chill out.
If managing fulfilment takes up all your time, outsourcing fulfilment can help you regain some of it. This allows you to spend more time driving business growth and making space for yourself.
You want to go global
Expanding internationally is a big step and an admirable one at that. While it isn’t particularly difficult to ship orders across borders, establishing a presence overseas can be complicated—and even more so, doing it cost-effectively.
One of the best ways to establish yourself overseas is by offering the same high level of customer experience to your international customers as you do to your domestic ones. That’s impossible if you’re shipping orders large distances because your customers probably don’t want to wait.
You also have the cost of shipping to consider, which will either increase the customer’s expense or eat away at your margin.
Localising fulfilment via 3PL can alleviate many of the risks and complexities involved with going global. You can send your stock to them in bulk and then fulfil orders closer to your customers. This helps you get orders to their doors faster and significantly slashes the cost of shipping.
Ready to Outsource? J&J Can Help
If what you’ve read has resonated with you, exploring the world of outsourced fulfilment might knock down a few barriers and unlock some doors.
At J&J Global Fulfilment, we specialise in tech-enabled fulfilment, giving you total visibility of your supply chain data. Through our global network of fulfilment centres, we store, pick, pack, and ship your products anywhere in the world.
It’s all powered by ControlPort™, our proprietary platform that puts you in control. Track orders, manage stock, and access valuable business intelligence that helps you make the right decisions at the right time.
And, with our inclusive international growth service, Navigator™, we’ll help you take the global stage legally, profitability, and quickly.
For more information, don’t hesitate to give us a call or fill out our online form.
PS: If you’re still unsure, read our related article: 6 Signs You Shouldn’t Outsource Fulfilment (Yet).
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