7 Signs You Are Ready to Outsource Order Fulfillment
Broadly speaking, order fulfillment refers to everything a company does between receiving an order (the point of sale) and placing the product in the customer’s hands. Though every business operates their order fulfillment differently, one thing remains constant: The faster a quality order can be delivered, the happier the customer is going to be. Outsourcing your business’s packaging services may be the deciding factor between a happy customer and a fulfillment problem.
Did you know 42 percent of logistics spending is outsourced?1 Many companies choose to outsource their packaging services and other order fulfillment duties with the goal of expediting deliveries—a smart, money-saving business decision. It is the answer to many companies’ need to have specific parts assembled or packaged before they are shipped.
If you answer yes to one or more of the following questions, it may be time to partner with a professional packaging company that specializes in meeting clients’ specifications in customized packaging, shipping, and other services.
7 Signs You Should Consider Outsourcing
- Do you want to cut costs? Most businesses do. Outsourcing packaging needs has become a primary way that small businesses are managing to cut costs while focusing on customers.2 With outsourced professional packaging services and order fulfillment, companies can take advantage of lower shipping costs, as many fulfillment providers can negotiate better rates with carriers because of greater shipping values. Those cost savings are then passed on to your company. For this reason, working with a packaging company is generally less expensive than doing it yourself or running your own warehouse.
- Do your order volumes fluctuate throughout the year? Outsourcing packaging services can absorb seasonal spikes or lows in shipping volumes. When you manage the fulfillment process yourself, your business shoulders the burden of labor costs and warehousing space, costs that remain fixed so long as you are performing the work yourself. With a fulfillment company, you can use as much or as little as you need depending on the seasonal fluctuations of your business, allowing you to maintain a more constant and predictable cost per order.
- Is your business growing? If you are growing too fast for your current infrastructure, or predict rapid growth in the future, outsourcing your order fulfillment might be a good idea. Do you want to spend time finding additional warehouse space or hiring new employees? Outsourced packaging services allow you to scale your order fulfillment to match your growth.
- Are your technology or design capabilities lacking? Let’s face it: Technology isn’t cheap. Outsourcing your fulfillment allows you to benefit from the latest and greatest technology without having to spend a lot of money constantly upgrading and maintaining your own technology and equipment. A high-quality packaging company has everything it needs for the job on-site, so you don’t have to.
- Do you have unique packaging requirements? Most custom packaging companies specialize in accommodating any shipping need, from packing order with components in various shapes and sizes into large kits to labeling, personalization, and bottling services. Order fulfillment companies have facilities equipped with assembly lines, specialty equipment, and the latest technologies that save time and ensure high quality packaging.
- Are you tired of shipping errors? A good rule of thumb is that each error costs you 3-4 times the amount you spent per order in pick-pack-ship cost—assuming you can retain the customer.3 Fulfillment companies utilize automated processes, sophisticated inventory control systems, state-of-the-art technology, and streamlined packaging methods to ensure that each order is processed efficiently and accurately. Packaging companies meticulously check for missing parts, improper packaging and assembly, and often assembled products are electronically counted and weighed before shipping.
- Are other aspects of your business taking a backseat? You should be spending your time building your business, not packing and shipping your merchandise or worrying about the details of order fulfillment. If you lack the time to implement marketing campaigns, advertising, sales, branding, and other business growth functions, it may be time to outsource fulfillment services. Using a turn-key packaging service allows businesses to stay focused on their core competencies and work to improve their products, services, and profits.
Here’s another reason to consider outsourcing your order fulfillment: Outsourcing fulfillment services to packaging service companies increases customer satisfaction.
Customers expect the right order shipped quickly, at the time they expected, and they want to be able to make returns easily and affordably. Working with a packaging service company provides businesses with peace of mind knowing that everything is guaranteed to be shipped safely and efficiently in one order, without a lot of waste or hassle. Outsourcing your order fulfillment enables you to assure a professional delivery for your buyers, complete with excellent customer service—and it’s all out of your hands.
Contact Streamline Fulfillment Today
You may be asking yourself, “When is the right time to outsource my order fulfillment?” If you are asking that question, the time is likely now. As a professional packaging service company, Streamline Packaging offers customers customized packaging and shipping for every product, with capabilities for kitting, packaging, pad printing, and bottle filling on-site.
Do you need to have a specific part assembled before shipping? Would you like to include 30 different items in a single kit? Or maybe you need 80,000 parts packaged in 24 hours. Are you looking for packaging companies? No matter the packaging project, Streamline Packaging can do it. With a focus on turnaround times and careful attention to quality packaging services, Streamline Fulfillment custom packaging services can help your business grow to its fullest potential. Contact us today or go to www.streamlineplastics.com.
Resources:
1. Armstrong & Armstrong Associates 2011
2. Assemblies Unlimited https://www.assemblies.com
3. Shipwire https://www.shipwire.com/w/support/guide-to-outsourcing-order-fulfillment/#outsource
