When should you consider outsourcing fulfillment logistics to an established 3PL?
Four key questions will help you determine whether it’s time to enlist the services of Elevate 3PL Consulting:
1. Are you fulfilling more than 10 to 20 orders per day?
If that’s where you’re at, calculate the costs of partnering with Elevate 3PL Consulting to keep your profit margins strong. At Elevate 3PL Consulting we can assist you with your RFP and approach to selecting an established 3PL. Outsourcing packing, picking, and shipping can save time on manual labor, especially if you’re partnering with a 3PL that uses automation.
Likewise, estimate the growth potential—opportunities you’re not currently able to pursue—by outsourcing fulfillment to an established 3PL.
2. Are you running out of inventory storage space?
Merchants often forget to include storage costs in their fulfillment expense calculations.
When deciding whether an 3PL is right for your retail business, compare your current warehouse expenses with estimates from multiple 3PL's. Sometimes, bundling storage costs with outsourced fulfillment gives you better value for your money.
3. Can your existing infrastructure handle a surge in demand?
How much would a sustained spike in order volume (outside of one-off flash sales or marketing promotions) cost your business?
If you need to hire rapidly to increase in-house capacity or invest in automation yourself, it might be more cost effective to outsource fulfillment to an 3PL.
4. Do you want to offer faster shipping and fulfillment?
Consider a 3PL if you want to offer shipping options like next-day or two-day delivery but find it challenging to do so with your current in-house operations. Faster shipping can increase customer satisfaction, higher conversion rates, and more repeat purchases.
Elevate 3PL Consulting works with multiple clients, which allows us to negotiate better rates in selecting a 3PL to meet your needs. These savings can be passed on to you, making faster shipping options more affordable. They can also help you implement strategies like zone skipping or multi-carrier shipping to optimize for speed and cost.
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