Order fulfilment is an integral part of the ecommerce process. Once the business begins to grow, many ecommerce companies find that the storing, picking, packing and delivery of their goods becomes too time consuming. A quick cost benefit analysis using the checklist below will help you decide whether outsourcing your order fulfilment is the way the forward.
1. Could you use your resources more efficiently?
Is the time you devote to fulfilling your orders preventing you sourcing new products and effectively promoting the goods on your website? If the answer is yes, concentrate your expertise on the acquisition of new products and the marketing of your goods by outsourcing your order fulfilment. Viable businesses are sales driven.
2. Are your sales seasonal?
If the products you sell are seasonal or affected by peaks and troughs, it can be costly to maintain warehouse space and staff at times of low demand. This fixed cost remains even when there are few or no sales. Using a bespoke order fulfilment company like DK Fulfilment converts your order fulfilment costs from fixed to variable , which reduces your per unit cost.
3. Do you have a shortfall in information technology (IT) and warehousing skills?
Warehousing is increasingly reliant on up to date IT. If this expertise is lacking in your business competencies, it will be more cost effective to outsource to an expert order fulfilment service. They will have access to the latest technology services by a dedicated technical team. This will give your customers a premier service and allow you to use your expertise to the greatest effect within your own organisation.
4. Are your order fulfilment capabilities limiting your business’ growth?
A business that depends on supplying goods to their customers for their growth is limited by the speed they can deliver the products. Warehouse storage and staff to pick, pack and deliver the goods are finite. We have already discussed how such fixed costs are a detriment to a business during poor sales periods. If this is your situation, outsourcing your order fulfilment to a dedicated fulfilment company means you can have as much capacity as you require as your business grows.
So how did you do? If you answered yes to one or more of these questions outsourcing may be for you. Finally make sure you choose an order fulfilment company with flexible resources that will always be able to meet your needs.
Image credit: Gwan Kho