{"id":7768,"date":"2019-02-12T18:25:22","date_gmt":"2019-02-12T18:25:22","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/amazon-fulfillment\/outsourcing-order-fulfillment-guide\/"},"modified":"2023-11-30T03:51:15","modified_gmt":"2023-11-30T11:51:15","slug":"outsourcing-order-fulfillment-guide","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/outsourcing-order-fulfillment-guide\/","title":{"rendered":"Complete Guide to Outsourcing Ecommerce Order Fulfillment"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Logistics can be one of the most important, and often complicated parts of operating a business. The complexity and increased consumer pressure and expectations that sellers need to meet makes managing the logistics process even more significant in today\u2019s marketplace.<\/span><br \/>\n<span style=\"font-weight: 400;\">For a small company that is just getting off the ground, it can be possible to manage it yourself. However as you grow and demand increases it might make sense to consider outsourcing shipping and supply chain management.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This guide will help explain product fulfillment, why sellers choose to outsource to an order fulfillment company instead of managing it themselves, and whether working with a 3PL to outsource fulfillment might be the right option for your business.<\/span><\/p>\n<h2><b>What exactly is outsourcing order fulfillment?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Outsourcing fulfillment means hiring a third party to manage parts of the order fulfillment process; this might include warehousing inventory, packaging items, or shipping orders out to customers. Depending on your order fulfillment needs, and <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/choosing-a-third-party-logistics-3pl-or-fulfillment-partner\/\"><span style=\"font-weight: 400;\">which company you choose<\/span><\/a><\/span><span style=\"font-weight: 400;\"> to work with, other services like <a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/Inventory\/6-benefits-outsourcing-inventory-management\/\"><span style=\"color: #3366ff;\">inventory management<\/span><\/a>, kitting, returns, and many others might make sense to outsource also.<\/span><\/p>\n<h2><b>Third-party order fulfillment providers<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you choose to outsource order fulfillment processes to a <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/3pl\/guide-third-party-logistics-3pl-fulfillment-providers\/\"><span style=\"font-weight: 400;\">third-party logistics<\/span><\/a><\/span><span style=\"font-weight: 400;\"> (3PL) provider it means that they will handle the services below on your behalf using their own <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/fulfillment-center-difference-warehouse\/\"><span style=\"font-weight: 400;\">fulfillment centers<\/span><\/a><\/span><span style=\"font-weight: 400;\">, staff, and technology:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Warehousing<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/order-fulfillment-picking\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">Picking<\/span><\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Packing<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/beginners-guide-to-shipping\/\"><span style=\"font-weight: 400;\"><span style=\"color: #3366ff;\">Ship orders<\/span><\/span><\/a><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Returns<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Additional services as needed, and as available<\/span><\/li>\n<\/ul>\n<h2><b>Benefits of outsourcing logistics to a 3PL<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There are numerous reasons why ecommerce businesses choose to have a 3PL handle their ecommerce fulfillment processes instead of trying to manage them in-house. Below is a list of fulfillment solutions that you can expect from a good 3PL.\u00a0<\/span><\/p>\n<ol>\n<li>\n<h3><b> You don\u2019t need your own inventory storage<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If your company has a successful product, and your are rapidly growing your inventory to meet customer needs, you know the feeling of overflowing inventory, whether it\u2019s in your home garage, office, storage space, or elsewhere. It\u2019s an excellent problem to have, but strategizing solutions can be a huge hassle.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When you choose to outsource to an order fulfillment company, the 3PL can store all of your inventory for you without you having to take deliveries, handle the products, organize and sort everything. This leaves more space that might be needed for business operations (or your sanity!). It can also be a cost-effective method to help boost your bottom line.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The 3PL will help you manage the flow of inventory from manufacturer to their fulfillment centers; they will alert you when the inventory levels get below a certain threshold and order more inventory to be sent to their fulfillment centers which will decrease your fulfillment costs.<\/span><\/p>\n<ol start=\"2\">\n<li>\n<h3><b> Avoid the hassle of packing and shipping operations<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">There are many steps to successfully getting products sent to customers, each step can be time consuming, costly, and require significant industry knowledge to do them well. For example, finding the right sized boxes and protective packing material, printing labels, and coordinating with \u00a0the carrier or warehouse staff are all important to keep your ecommerce fulfillment and logistics operation running smoothly. These tasks have large margin for error. Packing your products poorly can lead to damaged goods, and unhappy customers. Not to mention the hassle of return logistics, at scale. These are what a 3PL does! Leave the hassle to the experts who know the latest eco-friendly packaging, best ways to get your branding into all aspects shipping, and cost-effective options when it comes to carriers and delivery options. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you choose to rent a warehouse space, that is also costly and time consuming. It needs to be staffed, equipped, insured, as well as set up with necessary technology to operate and coordinate in our fast-paced age of information and 2-day shipping standards. And that is only to get it ready to operate. It is a long term commitment that requires knowledge and tremendous resources. Outsourcing fulfillment to a 3PL can take all of those problems off your hands. Plus the right 3PL will have the latest technology to ensure speedy and accurate communication between the many players in the supply chain. Plus they can likely arm you with data to help optimize your products and logistics.\u00a0<\/span><\/p>\n<ol start=\"3\">\n<li>\n<h3><b> Keep your focus on your business<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Order fulfillment and logistics are undoubtedly significant to any seller, but they take up valuable time and energy that can be better spent in other ways.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you\u2019re tasked with managing inventory, warehouse staff, packing and picking, you can lose focus on scaling your business, generating sales, and growing your customer base.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Any seasoned business owner knows that is important to know when it is time to pass tasks to other people, delegate so you have the capacity to make decisions for the business at large. There can be a critical point when outsourcing order fulfillment processes to a 3PL is crucial to growing your business. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">It \u00a0can free up time to improve and develop products, build your brand, and other important aspects of your ecommerce online store that you have the first hand knowledge to lead.<\/span><\/p>\n<ol start=\"4\">\n<li>\n<h3><b> Add industry experts to your team\u00a0<\/b><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">Successful order fulfillment entails coordinating many fast and accurate tasks across various people. Because of this, issues can quickly bubble up and become overwhelming to any business owner. These only increase as order volume and customer demand grows.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A 3PL is the industry expert on all things fulfillment and shipping, working with hundreds of various sellers and handling hundreds of thousands of orders, if not more. This allows them to negotiate with major shipping carriers and provide steep discounts on shipping costs that they then can pass on to sellers.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An established and successful 3PL has the infrastructure to handle complicated needs as they arise, and mitigate issues quickly, which leads to more efficient scalability as your business grows. They can also provide lower shipping options than you likely could access on your own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you find the right 3PL for your business, inherently they will become a close partner in making your ecommerce business successful. It means you basically have an industry expert on your team. You can rely on your 3PL to send updates (of inventory or current industry trends) that keep you informed and help you navigate the shipping and logistics of your product. This can also help to enhance the customer experience, leading to repeat customers.<\/span><\/p>\n<ol start=\"5\">\n<li>\n<h3><span style=\"color: #000000;\"><b> Cut costs by utilizing a 3PL\u2019s multiple fulfillment center locations<\/b><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If you are self fulfilling your orders, chances are they are only being shipped from one location. This can be more expensive and lead to increased transit times as you ship across multiple shipping zones to get your products to customers who are farther away from your single location. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Most 3PL\u2019s have <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/multiple-fulfillment-location-benefits\/\">multiple fulfillment centers<\/a><\/span> located in strategic areas across the country, allowing for products to be shipped out cheaper and faster than doing it in-house. By splitting your inventory between various warehouses it ensures that they can be stored closer to your customers, allowing you to provide two-day, next day delivery or even same day delivery that has more and more become the standard for most businesses. They can also help to decrease your shipping rates to provide cost savings.<\/span><\/p>\n<ol start=\"6\">\n<li>\n<h3><b> Fill and ship with top speed and accuracy a 3PLs technology and analytics to help your business<\/b><span style=\"font-weight: 400;\"> \u00a0<\/span><\/h3>\n<\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">If you are self fulfilling orders it usually involves a time consuming manual order management process. If you outsource to a <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/technology\/benefits-of-technology-focused-3pl-order-fulfillment\/\"><span style=\"font-weight: 400;\">technology focused 3PL<\/span><\/a><\/span><span style=\"font-weight: 400;\"> you aren\u2019t simply getting their order fulfillment services, but additionally the top technology to help the speed and accuracy of your fulfillment and shipping. \u00a0A 3PL should have tools that can lend data and analytics to help inform your future decisions to grow your business, decisions based on aggregated customer locations. By working with \u00a0a 3PL to generate this data, you can boost revenue, <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/optinmonster.com\/11-advanced-tips-to-reduce-shopping-cart-abandonment\/\"><span style=\"font-weight: 400;\">reduce cart abandonment<\/span><\/a><\/span><span style=\"font-weight: 400;\">, and meet <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/Users\/michaelbrumm\/Local Sites\/dclcorp-phase-2-launch\/app\/public.salesforce.com\/research\/customer-expectations\/\"><span style=\"font-weight: 400;\">higher customer expectations<\/span><\/a><\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A 3PL should be able to integrate into your existing systems to connect your entire supply chain and provide the following:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Real-time tracking<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Forecast inventory<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Data driven decisions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Route orders to the fulfillment center closest to your customer<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Offer <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/expedited-shipping-101\/\"><span style=\"font-weight: 400;\">expedited shipping<\/span><\/a><\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Additional services as needed and available<\/span><\/li>\n<\/ul>\n<h2><b>Bottom line<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">If you are considering outsourcing your order fulfillment process, finding the right 3PL as a fulfillment partner is one of many critical decisions you will need to make to ensure the long term health of your business. The right 3PL partner will properly support your businesses\u2019 growth, become like a team member, help you navigate the complexities associated with logistics and supply chain, and ultimately, keep your customers happy by getting your products in their hands quickly and accurately.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it may seem like a daunting task, it shouldn\u2019t be. With proper preparation and asking the right questions, you should easily be able to identify the 3PL partner that\u2019s right for you. Hopefully, these tips will help you with your preparation and decision making process. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have further questions, contact our support team <\/span><span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/company\/contact-us\/\"><span style=\"font-weight: 400;\">here<\/span><\/a><\/span><span style=\"font-weight: 400;\">. We\u2019re happy to help you make the best decision for your business. <\/span><span style=\"font-weight: 400;\">You can read<\/span> <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/services\/ecommerce-fulfillment\/\"><span style=\"font-weight: 400;\">DCL\u2019s list of services<\/span><\/a><\/span> <span style=\"font-weight: 400;\">to learn more, or check out<\/span> <span style=\"color: #3366ff;\"><a style=\"color: #3366ff;\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/resources\/integrations\/\"><span style=\"font-weight: 400;\">the many companies we work with<\/span><\/a><\/span> <span style=\"font-weight: 400;\">to ensure great logistics support.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Logistics can be one of the most important, and often complicated parts of operating a business. The complexity and increased consumer pressure and expectations that sellers need to meet makes managing the logistics process even more significant in today\u2019s marketplace. For a small company that is just getting off the ground, it can be possible [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[20],"tags":[],"class_list":["post-7768","post","type-post","status-publish","format-standard","hentry","category-fulfillment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Outsourcing fulfillment can provide many benefits for ecommerce businesses | DCL Logistics<\/title>\n<meta name=\"description\" content=\"Outsourcing order fulfillment to a 3PL can provide many benefits to for your business. This guide explains why this might be a smart choice.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/outsourcing-order-fulfillment-guide\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Complete Guide to Outsourcing Ecommerce Order Fulfillment\" \/>\n<meta property=\"og:description\" content=\"Outsourcing order fulfillment to a 3PL can provide many benefits to for your business. 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