A 3PL takes over your responsibilities starting from inventory to delivery but does that necessarily mean that you don’t have any control over your product and customers? Let’s break down myths like this today and set your business up for success.
Have you ever tried hiring a 3PL for your e-commerce business or are you too concerned of the myths surrounding it? Not sure?
No worries, in this article, we will walk you through some myths that are stopping business owners from expanding with a 3PL.
Outsourcing impacts the way a business grows. It is a popular way to get expertise, resources and infrastructure while reducing operational costs. To put it simply, it means hiring a third-party fulfillment center to take over responsibilities of your entire supply chain process. Earlier, outsourcing was limited to few industries and multi-national corporations but now it has dwelled deep into every business and industry of different sizes.
E-commerce businesses juggle between too many processes with limited resources at hand. This makes outsourcing fulfillment not only a part of optimization strategy – it’s a necessity.
What Is a 3PL?
A third-party logistics or a fulfillment center allows business owners to outsource their fulfillment operations from warehousing to delivery. This enables you to focus on your product, its quality, marketing, branding, and expansion, and save you from the hustle of setting up a warehouse, inventory management, picking, packing, shipping, delivery, and returns.
A 3PL enables you to save on money and time by providing a ready infrastructure to manage your business, including technology, store staff, and transportation. Moreover, they can help you gain a geographic footprint with multiple fulfillment centers across the nation, thereby allowing you to be closer to your customers.
Myths Around Partnering With a 3PL
There are lots of misconceptions around partnering with a 3PL. Let’s have a look at them.
- A Fulfillment Center Is Just Storage.
A Big-time lie! There is a difference between a fulfillment center and a warehouse. In short, a warehouse is simply a storage space, whereas a fulfillment center is a fully functional supply chain management hub. This means warehousing is a part of a fulfillment center.
Here are some top-notch services you can avail of at FHU:
- International and Domestic Shipping
- Imports and Customs
- E-commerce Fulfillment
- FBA Services
- FBM Services
- Knitting and Packing
- Security and Insurance
- Wholesale Fulfillment and Storage
- Alcohol Fulfillment
- Same-day Delivery
2. Outsourcing Fulfillment to a 3PL Is an Expensive Investment
At first glance, outsourcing fulfillment seems like an expensive idea, but if you are planning to stay in business for the long term, it is a beneficial one. It will save more money down the road.
Doing everything in-house requires constant investment. Let’s have a look at what they are:
- Starting with the foundation, investment in the real estate. As your business expands, you will need more space to store and perform inventory operations.
- More space leads to more labor, and along with this, more electrical, security, packaging, and technological expenses.
- A Secure Delivery Management System.
- An Easy and Reliable Returns Management System.
From a long-term perspective, managing all these will cost a lot of time and money, which you should invest in branding, marketing, and quality assurance of your products.
Hence, outsourcing fulfillment will save you more money than in-house fulfillment if you plan to sustain yourself in the industry for a long time.
3. Getting Orders Are More Important Than Fulfilling Them
While every business’s goal is to get more and more orders, it is equally important to fulfill those orders. It’s the cumulative effect of the complete order fulfillment process that decides your business’ relationship with your customers.
A bad shipping experience can hamper your brand image and make your consumers go away. In these situations, 3PL providers play their parts with a cost-effective and fully optimized approach. By ensuring a delightful fulfillment experience, 3PL providers help you build customer loyalty and increase your revenue.
4. A 3PL Can Degrade the Quality of Customer Service
Any misstep can cause irreparable damage. Inexperience is one of the biggest reasons for a mishap to happen. If you hire a less experienced and expertise fulfillment hub then, your customer service will certainly suffer. Hence, before hiring any 3PL, keep these questions in mind, and ask them these questions.
A good 3PL ensures it offers excellent customer support by setting the right expectations with your customers and notifying them throughout the order-fulfillment process. Moreover, a 3PL takes care of secure warehousing and faster delivery. So, a reliable 3PL will always elevate the experience of your customers.
4. Partnering With a 3PL Means Giving Up Control of Your Business Operations
Many business owners believe that outsourcing the order-fulfillment process will make them lose control over the fulfillment and lose sight of their customers. However, the truth is contrasting. 3PL providers offer better control and supply chain visibility.
Tech-enabled 3PL provides you with insights into your inventory, keeps you in the loop of the order- fulfillment process by updating you at every stage, display analytics, and more. Access to these tools will help you gather all data in one place and support you in making informed and foresighted decisions.
Hence, hiring a 3PL will keep you updated for every stage of the order-fulfillment process.
When you are evaluating your business, keep the long-term health of your business in mind. Instead of believing the myths around a 3PL, try asking all questions to them and hire the one you feel is experienced, tech-driven, and can fulfill your requirements better.
Explore the Possibilities With a Stellar Tech-Driven Fulfillment Hub. Experience FHU.
Fulfillment Hub USA is your ultimate tech-driven 3PL partner. We take care of your fulfillment requirements from warehousing, inventory management, picking, packing to shipping, delivery, and return handling. Our warehouses are designed strategically with temperature-controlled storage options and 24/7 security. This has led us to process every order accurately and rapidly. Our shipment is fast with different modes of transportation.
Our 5-in-1 cloud-based software helps you manage your inventory and keep you updated at every stage of the order-fulfillment process. Everything about your order is at your fingertips with no hidden charges.
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