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When you’re thinking about your business, your first instincts will be to focus on sales and accounting – that is, after all, how the money comes in, and how profit is created. Other aspects (like the logistics of storage and shipping) are often underestimated. Sales are exciting, without a doubt, but being able to fulfill these sales and ensuring the customer gets the order in a cost effective and efficient manner is something only experts can do. Trust those with experience: it’s really not as easy as it sounds. Have you ever wondered why companies turn to third party providers for these cumbersome logistical needs? Here’s why using a third-party fulfillment and warehousing provider makes good business sense.
No need for long-term commitments
It’s a simple fact of life that, in business, there will be times that you grow at a quick rate, and there will be times that you grow at a slower rate – or even be stagnant for a while. This is especially true for enterprises that offer seasonal products or have yearly cycles. Most logistical companies understand this and are able to offer short-term contracts or adjust their prices according to the stage you and your company are in.
The staff is provided
If you were to collect, store, fulfill, and send your own orders, you would need staff to take care of this – especially during times when orders are practically flying out the door. It means you would not only have to hire employees, but also that you would have to provide the proper training for them; and this can be very expensive. By taking advantage of the services of a third party fulfillment company, such large investments are not required.
You may be successful at your business, but that doesn’t mean you’re an expert at packing and shipping off. Trust the experts – they know how to pack, how to store, how to organise, how to handle, how to ship. They’re incredibly effective due to their experience.
Since expert companies usually handle in large volumes, they get special rates – and this translates into a much more cost-efficient process that is passed on to you.
The third-party option is ideal, especially for certain kinds of businesses. If your business is small but you have large logistical needs, outsourcing to a warehousing and fulfilment company is especially advantageous. Other enterprises also benefit immensely from this concept: businesses with seasonal sales, for example. And here is perhaps the biggest advantage to the manager or business owner who decides to outsource: it clears up a lot of time and gets rid of a lot of stress so you can focus on other aspects of running your business. It frees up time and resources, which can now be directed towards growing the enterprise and increasing those profits.