Let 3PL experts add value to your bottom line
Letting go of any aspect of your business can be tough. You’ve nurtured your concept into a full-fledged product. And like any proud parent, you’re thrilled that those tentative baby steps have turned into a full-fledged success.
But, at what point does the excitement of having shipping boxes and tape in your garage or rented warehouse space wear off? When does the smell of cardboard interfere with the smell of success? Or, are you starting to begrudge the time and money spent on order fulfillment when you could be planning a new product line?
If you’re doing more than half a dozen shipping runs a day, your cash flow is under control, and your products and packaging aren’t one-offs due to customization, it’s time to consider outsourcing order fulfillment.
Delegating fulfillment to a 3PL (Third Party Logistics) provider
When your company first started, just a few people shouldered all the responsibility. But at some point, you had to hire others—either as consultants or full-time staff. You needed to delegate certain areas of responsibility so the business could grow. You can do the same with order fulfillment. In fact, 90% of US-based Fortune 500 companies have!
Why? An efficient, in-house shipping operation is a completely different corporate beast than product development and sales. You must make a significant investment in space, shelving, machinery, software, and personnel—none of which have anything in common with the creation and marketing of your products.
That’s why savvy companies believe in outsourcing order fulfillment. That way they can concentrate on areas with a more direct return on investment.
Just what does a 3PL order fulfillment company do?
The order fulfillment process is as follows:
- A 3PL site receives inventory of incoming products, scans and computerizes key packaging measurements, and then stores product in computer-tagged areas of the warehouse for later retrieval. It essentially becomes a manufacturer’s virtual warehouse.
- Specialized EDI software interfaces with sales departments, ecommerce sites, and online marketplaces. Once customer orders are received, picking lists for each individual order are generated.
- Teams of trained personnel pick the ordered products from their designated storage spots, carefully pack them in boxes optimized for product dimensions, weigh and input packaging information into online shipping portals to generate labels, tracking info, etc., and then load them into designated shipping carrier trailers.
- Tracking information for each product is transmitted back to the manufacturer
- Post sales, a 3PL often handles returns sent back by customers.
- An order fulfillment company also tracks inventory levels. This helps manufacturers know just how much is in stock and available for sale.
The 9 advantages to working with an order fulfillment company
So, how does outsourcing order fulfillment help your bottom line?
- You can ship your product directly from the manufacturer to the fulfillment center instead of storing it on-premise. This minimizes handling, reducing breakage. Some shipping fulfillment services, like Petra Industries, can even isolate your shipment before storing it, should you choose to inspect it for quality control. There’s plenty of room in our 525,000 sq. ft. warehouse!
- You reduce your operating costs by going turnkey for order fulfillment. This eliminates a costly investment on your part in space, equipment, and personnel. Nor do you have to worry about losing orders. Petra’s EDI solutions, for example, integrate with all major ecommerce sites.
- No worries about how to handle shipping during off-season or peak sales—a fulfillment center is already set up to deal with cyclical selling seasons. Petra adds more personnel and shifts as required.
- Provide extremely fast turnaround of shipments to your customer. Depending on when the order is received, it can ship out the same day. Petra is centrally located in Oklahoma. This optimizes delivery to all parts of the country.
- Reduced shipping rates as well as the cost of packing materials. Thanks to the large volume of business a fulfillment company has with suppliers and carriers, it can negotiate reduced rates. You benefit from those savings. As one of the state’s largest outbound shippers, Petra has negotiated excellent rates with UPS, FedEx, and other carriers.
- Offer a variety of shipping delivery dates to your customers. Often, in-house fulfillment leads to just a single shipping option—like overnight, 2-day delivery, or a week to 10 days. Using companies like Petra, with its access to a wide range of shipping options, allows you to add tiered shipping options on your own website. This, in turn, enhances your customer service. Customers always want a choice!
- Let the fulfillment company handle returns. You and the fulfillment center can establish protocols, based on the various scenarios. At Petra, for example, we can field-destroy, send to a designated refurb location, or place back into stock.
- Easier handle on available inventory. The order fulfillment company constantly tracks your inventory levels. Here at Petra, manufacturers have their own 3PL online portal. It offers convenient inventory and order management options such as access orders and tracking information, quickly place orders, and view inventory levels and history.
- Invest the time and costs earmarked for your own shipping operation into other areas of your company—like product development and more sales. And should you want to explore other sales channels, Petra stands ready to help with that too.
Order fulfillment isn’t rocket science…
But it is a beast that’s completely different from typical office needs. So, don’t split your focus and your funds. Use your resources to grow your brand. And use a 3PL like Petra to handle the logistics of picking, packing, and shipping your products.
For more information on all the 3PL services Petra offers, visit our website today!
