Third Party Logistics: Choosing To Outsource

In order to determine whether or not you should outsource your fulfillment to a third party logistics company, you need to understand what choosing to outsource means.

Third Party Logistics

Should you outsource fulfillment to a third party logistics company? It’s a critical element of your sales loop, so you may be reluctant to let go of control. On the other hand, it’s a headache. And is all that control generating the results you want? If your brand is synonymous with excellence, a fulfillment program that delivers merely “decent” customer experiences is out of alignment.

Outsourcing to the right 3PL could realign your entire operation. Consider these scenarios:

• Control or not, you want out of the logistics business. Warehousing, pick and pack, shipping, kitting for special promotions, etc. may be necessary, but they are not core business activities. For that matter, neither are customer care, credit card processing. These things are taking up space, time, attention, and money. You have to get products to customers, but you’d rather have someone else do it. You can outsource your entire fulfillment process, or just part of it. Then you could devote all those resources to growing your bottom line by refocusing on customer acquisition and product development.

• Despite your best efforts, service levels aren’t where you need them to be. Fulfillment is a complex process, and you just can’t seem to get it right. No wonder customer experiences are out of alignment.

• Volume fluctuations are killing you. Service falls off, just when you need it the most. You’re losing customers because you can’t ramp up fast enough, so you’re always behind the 8-ball. You’re losing money because you can’t ratchet down quickly. It’s not like you can’t predict when your peaks and dips will occur. In the past, you actually tried outsourcing to a 3PL provider. They did a better job but they charged you royally for that extra effort. You can’t afford to sacrifice your bottom line any more than your customer’s satisfaction.

• Your company is committed to excellence. Your brand is known for that. Your products fulfill that brand promise. And yet you aren’t making good on your promise when it comes to fulfillment. You’re getting it done, but your customers expect more. If you don’t do something – and soon – you’ll lose them to competitors.

It’s time for a realignment

It takes the right third party logistics partner to pull things into line and transform your fulfillment process into customer experiences that deliver on your brand promise, boost sales, and generate greater customer lifetime value. But it can be done. Give USA Fulfillment a call, and we’ll tell you how.