The success of any business will rely on various factors but making the customers happy is probably one of the most important. Your customers are the lifeline of the business and without them your business will obviously fail. Therefore, it is important to make sure that the customer receives their orders in a timely manner. Packaging and shipping orders can be quite a big challenge especially for growing companies.
By outsourcing a fulfillment center, the business can then turn attention on product development and marketing. A lot of companies are concerned about warehousing and building one might not be a viable option. The fulfillment center will store, pack, handle and ship your products on your behalf. There are a wide range of benefits that a business will get by outsourcing a fulfillment center such as those listed below:
1. Reduce labor costs
The fulfillment centers hire people who are trained and experts in shopping and warehousing. This means that you have professionals at hand to handle all business needs when you need them. Therefore, instead of having to pay salaries, health benefits, bonuses and holiday pay, you pay for the services you need. As your business grows, you do not have to hire extra staff and you can be a one person operation as long as you can handle it. Small growing companies can benefit greatly from this since they get to save money which can be directed to other business operations.
2. Offer flexibility
Over time, you will find that your business has changing needs and a fulfillment center will offer you the flexibility you need. It does not make sense to hire a big warehouse that is overstaffed and stands empty most of the time. The fulfillment center will help you utilize just the space that you need at a particular time. In case you need more space, it will simply be allocated and you do not have to look for another storage option.
3. Reduced shipping costs
Shipping materials are purchased in bulk and these savings are handed down to your business. This means that you get to save a significant amount of money. Also, fulfillment centers work closely with parcel delivery carriers and are thus charged better rates than you would pay as a fairly new business. Obviously, this is because they ship parcels in bulk unlike other businesses. They can then negotiate for lower package prices with leading couriers and pass these savings to you.
4. Reach more clients
Since fulfillment centers have a wide distribution network, you are in a position to bring your products closer to customers. This means that you can reach foreign markets and at the same time, offer clients local returns, delivery times and shipping rates. Outsourcing will help your business grow without having to make large investments on employees and infrastructure. The use of web based systems allows the manufacturer to keep track of the inventory at any time.
5. Increase focus on business operations
A growing business that works with a fulfillment center will get instant benefits since focus will be turned on business operations. This allows the manufacturer to concentrate on production of quality products and marketing for a strong customer base. Warehousing, inventory, shipping and packing is left to professionals who are familiar with all aspects of your products. If you have to deal with these activities on your own on a daily basis, it will end up being counterproductive and tedious.
6. Service improvement
The fulfillment centers are equipped with the best technology and equipment so that your products are packaged to your specification. This ranges from the packaging of the product down to the delivery note branding. Packaging is essential for any product because the customer should get the item in good condition and in a presentable packaging.
7. Eliminate handling of return products
If there are any errors or the wrong parcel is delivered, there should be allowance for returning the said products. You do not have to worry about handling return products since the fulfillment center will handle the issue. All you have to do is to ensure that the customer either receives a refund or another product.
September 27, 2015
September 27, 2015
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