How To Choose A Fulfillment Company

Maybe you feel overwhelmed by your current shipping operations. Or maybe you wonder if a third party could do a better job of optimizing these processes. Either way, there are many benefits to finding a third-party logistics partner to handle your warehousing and distribution needs. Outsourcing your distribution and warehouse services could offer many benefits:

• Time savings. Letting fulfillment specialists take over the job boosts efficiency. It also frees you up to focus on other parts of your business.
• Technology-enabled insights. Next-generation fulfillment companies have greater technology resources that can help optimize your business. For instance, a warehouse management system (WMS) makes it easy to track inventory. And you can use 3rd-party shipping data for inventory forecasting, ensuring you always have the right amount of product on hand. WBX Commerce offers additional insights from the sales side of your business as well … (insert vertical integration piece from “How to determine when your company is ready…”
• Seamless scalability. A fulfillment partner provides the expertise, flexibility, and extra floor space you need to grow. This ensures that any period of scaling for your brand will happen smoothly. Smooth scaling is especially important during seasonal fluctuations. After all, many eCommerce businesses don’t have the resources to hire seasonal help or acquire more warehouse space to meet shifting demand. A third-party fulfillment center, on the other hand, is prepared to handle busy periods.
• Solutions to common challenges. Partnering with a fulfillment company can save you from having to learn the hard way. Third-party logistics experts have likely seen it all before and will help you avoid common problems like fulfillment bottlenecks, running out of a product, or overstocking.
• Cost savings. According to Deloitte, 88% of holiday shoppers prefer free shipping to receiving their orders faster. Most order fulfillment companies have contracts with shipping companies and can pass on savings to their clients. These savings could enable you to offer free or reduced shipping costs to your customers.

Assess the fulfillment company’s offerings

Perhaps the most important consideration is whether your prospective fulfillment partner meets your brand’s needs and plans for growth. For example, if deliveries to your customers in California aren’t arriving on time, a company with a distribution warehouse on the West Coast can help. If moving products among locations is draining your budget, a company that uses marketplace management software to determine distribution solutions will be useful. Other offerings to consider include:

• Quality of customer service
• Branding options, like custom packaging
• Technology like a WMS
• Next-generation technologies – Inventory management, WMS, Marketing Agency, and Sales expertise, and data-backed insights to help make future business decisions
• Breadth of services: DTC, B2B, Marketplace Prep, Wholesale, Seller Fulfilled Prime (SFP)
• International logistics expertise, if you plan to expand overseas

Gauge your future partner’s expertise

Next, ask what unique insights your fulfillment partner can offer. For instance, can the provider identify areas for improvement you weren’t previously aware of? Can it suggest ways to grow your business and boost profitability using inventory and shipping analytics?

A good fulfillment company doesn’t just offer warehouse outsourcing and a network of order fulfillment centers. It also actively works with you to increase your sales, profits, and customer satisfaction.

Do your research

Ask for referrals and case studies from the fulfillment companies you are considering.

Also, check out reviews from third-party sites. If the company partners with well-known brands that are achieving goals similar to yours, that’s a good sign.