Why a Brand Needs 3PL Fulfillment: When to Move Beyond Your In-House Warehouse
Fulfillment refers to the process of receiving, processing, and delivering orders to customers. It includes tasks such as picking and packing orders, shipping them out, and managing returns. For small startups, fulfillment can be a critical aspect of their operations. In this blog, we’ll discuss why a small startup should use fulfillment, and when they should move out from their own warehouse and use fulfillment.
Why a small startup should use fulfillment?
Why a brand should use fulfillment?
Time-saving: A small startup often has limited resources, and managing order fulfillment can be a time-consuming task. By outsourcing fulfillment to a third-party provider, a startup can free up valuable time to focus on other aspects of the business, such as product development or marketing.
Cost-effective: Running a warehouse can be costly, with expenses such as rent, utilities, and labor costs adding up quickly. A fulfillment provider can often provide economies of scale, leveraging their larger operations to reduce costs and pass the savings onto the startup.
Scalability: As a startup grows, it may become challenging to keep up with the demands of order fulfillment. A fulfillment provider can offer a scalable solution, allowing a startup to easily manage increased order volume without the need for additional resources.
Expertise: A fulfillment provider has expertise in managing the entire order fulfillment process. This can include everything from inventory management to shipping and returns. By working with a fulfillment provider, a startup can benefit from this expertise and ensure that their orders are processed efficiently and accurately.
When should a brand move out from their own warehouse and use fulfillment?
While outsourcing fulfillment can be beneficial for a small startup, there may come a time when it makes sense to move out of their own warehouse and use a fulfillment provider. Here are some signs that it may be time to make the switch:
Limited space: As a startup grows, it may run out of space in its own warehouse. This can make it challenging to manage inventory and process orders efficiently.
High order volume: If a startup experiences a sudden increase in order volume, it may be difficult to keep up with demand using its own warehouse. A fulfillment provider can offer a scalable solution that can handle increased order volume without the need for additional resources.
Geographic reach: If a startup is looking to expand its geographic reach, it may make sense to work with a fulfillment provider that has a larger network of warehouses and shipping carriers. This can help to ensure that orders are delivered quickly and cost-effectively.
Cost-effectiveness: While outsourcing fulfillment can be cost-effective, there may come a point where it makes more financial sense to move out of a startup’s own warehouse and use a fulfillment provider. This may be due to factors such as increased order volume, higher shipping costs, or the need for additional resources.
Conclusion
Fulfillment is an essential aspect of a small startup’s operations. Outsourcing fulfillment can be a cost-effective and time-saving solution, and can provide valuable expertise and scalability.
When a startup experiences limited space, high order volume, or the need for a larger geographic reach, it may be time to consider moving out of their own warehouse and using a fulfillment provider.
By working with a fulfillment provider, a small startup can focus on its core competencies and continue to grow its business.