When it comes to distribution and delivery of your products, the choice of fulfilling your own orders or partnering with a third-party logistics (3PL) company is an important business decision.
At first glance, many assume that fulfilling their own orders is less costly and allows for more control in the process. However, you may be surprised to learn that partnering with the right 3PL offers a host of benefits, including cost savings, improved processes and added efficiencies.
DIY Fulfillment Problems
While your staff may be capable of fulfilling the company’s orders at the basic level, there are common problems that companies run into in this scenario. Growing companies often encounter the following issues when fulfilling orders themselves:
- Mounting expenses — Costs include the warehouse structure itself, in addition to the management system and a qualified manager to oversee operations.
- Lack of fulfillment — Increased orders, lack of space and supply chain issues all contribute to difficulty in distribution and delivery.
- Staffing issues — High turnover and hiring difficulties make keeping a steady, qualified workforce a challenge.
- Lack of efficiency — Shifting demand, creating peaks and valleys, makes it difficult to sustain the ideal number of employees, products and warehouse layout.
Benefits of Partnering With a 3PL
Whether you need ecommerce, multichannel fulfillment or transportation management solutions, a qualified 3PL can help.
These experts work as an extension of your team to ensure your products get to the right people at the right time, and that these items are picked, packed and shipped based on your key performance indicators. A 3PL is a steady partner through volume peaks and valleys to support your growing business—and bring peace of mind to your supply chain.
Partnering with a 3PL offers the following benefits:
- Improved processes — Since 3PLs have experience in various industries, they are able to take ideas from other industries and apply them where they make sense, increasing efficiency.
- Ideal workforce — A 3PL has significantly more employees working in the building than the average company can staff in its own private warehouse. Shifts and locations can be adjusted to cover peaks and valleys with ease.
- Cost savings — A 3PL can help streamline processes, identify inefficiencies, promote cost savings and navigate shipping needs. Effective 3PLs can leverage their relationships to help secure more favorable contracts with your carrier of choice, while also helping guide you toward the most cost-efficient and reliable shipping methods.
- Better location — Many 3PLs are located in key areas for more seamless distribution. For example, G&B Fulfillment recently partnered with Michigan-based toy retailer Fashion Angels in order to mitigate added costs based on shipping from their Midwest location.
- Maintain control — Despite outsourcing order fulfillment, companies who partner with the right 3PL still maintain control of the processes. From the beginning of the partnership, communication and working together closely ensure the 3PL is performing tasks exactly as the company desires.
The G&B Fulfillment Difference
The experts at GBF are dedicated to solving your product fulfillment problems, starting with access to more than 350,000 square feet in our Southern California warehouse.
You’ll work with a team of highly skilled distribution experts who are trained to fulfill your orders to your specs. Our large workforce can handle your peaks and valleys in seasonal volume or during steady or explosive growth—allowing you to focus on building your brand in the marketplace.
We offer services for ecommerce/direct-to-consumer and multichannel/retail supply chains, including:
- Same-day services
- Ticketing, kitting, labeling and repackaging
- Parcel freight management
- Inventory management
- Returns
- Automated or ad hoc reporting
- B2B and B2C services
- EDI
- Variable rates, so you pay only for what you use
When it comes to transportation support, GBF acts as an extension of your team to reliably schedule deliveries and pickups, manage the delivery of your parcels and provide competitive rates that help you control shipping costs.
Contact us today if you’re looking for a 3PL partner who values your business, wants to be an extension of your team and has the dedicated leadership structure that can allow you to grow effectively
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