When is the right time to outsource your fulfilment needs?

May 13, 2022 | Article

It is very common for scaled-up businesses and small and mid-sized enterprises (SMEs) to bring their operations in-house as a starting point, but as the business grows, pain points start to show. For example, making the tough decision of whether it’s more beneficial to expand your own warehouse space to support business growth, or whether onboarding a fulfilment partner is the most strategic option.

To give you a better understanding of why outsourcing your fulfilment might be the right option for you and your business, here are some clear warning signs that suggest it’s time to consider finding a fulfilment partner.

Depending on your product range and your target market, if your sales are showing consistency or growth, you would be reluctant to commit to your own workforce, warehouse space and additional costs. Remember, with onboarding a dedicated in-house team, additional warehouse space and equipment, you’re committing to fixed costs before any orders have been shipped out. With a fulfilment partner, you eliminate these pain points, risks and additional costs from the offset.

If you and your team are spending a lot of time picking and packing product orders to ship your orders to your customers and often taking those orders to local couriers, the likelihood is that you won’t be spending enough time focusing on brand strategy and growth. As a business owner, the main focus is usually scaling up, expansion and innovation, whether by sourcing new products and ideas, or expanding your current customer base.

With outsourcing fulfilment, everything is managed externally. In most cases, your online store directly connects to your fulfilment partner and everything else is managed by them until your customer receives their order from you.

Service Quality. One of the most common stumbling blocks when choosing a fulfilment partner is cost. Price is important, but finding a company that is a good fit for your needs is just as important. Equally, you don’t want the standard of service, quality or reliability to suffer as a result of choosing a lower-cost option. Unsatisfied customers could end up costing you more in the long run which may have a detrimental impact on your business. You may be forced to spend more time resolving mistakes by your fulfilment center, rather than focusing on strategy and innovation.

Technology and innovation. It is important to source a partner that can easily integrate with not only your current business, but also your existing integrations, systems and processes.

Data and reporting. Knowing your inventory and orders is the biggest influencing factor to your success and your cash-flow. Finding a partner that can provide real-time data and scheduled reports will save you time and allow you to make informed decisions about stock holding and promotions.

Finally, when choosing a partner for your business, remember that the fulfilment center should show a genuine interest to get to know more about your products, people and long-term goals. A partnership is about collaboration and this is something that 8Commerce prides itself on.

Our team are keen to help new and existing clients to innovate and reach their fullest potential, so why not get in touch and speak with one of our specialists today so you can:

  • Save up to 73% in shipping costs
  • Save 80% of time fulfilling orders
  • Free onboarding and integration
    *ini data dari mana ya ?

Click here to contact us and our team will be in touch with you shortly.

Recent Post

How to Use Social Media to Boost E-Commerce Conversions

Indonesia has around 170 million active social media users, the largest after China and India. This makes social media among the leading avenues for you to market and advertises your products and services. With such a big user base, you will be able to reach many...

How to Upsell and Cross-Sell on Your Online Store

Cross-selling and upselling increases your average order value, creating revenue and profit at very low incremental cost and most importantly build upon your relationships with your customers. Here you can learn more about these two fantastic techniques. What is...

A beginner’s guide to fulfilment

If you are just starting an online business or you’ve been selling online for a while, you’ve probably thought about how to send your orders to your customers and what packaging you are going to send it in. Or you might be considering streamlining your fulfilment...

The history of e-fulfilment center

In this article, we are going to learn about the interesting evolution from traditional warehouses to the modern e-fulfilment centers and the role they play as the logistics nerve center of E-Commerce. Fulfillment centers have been revolutionizing the way business is...

Getting to know WMS and OMS, the backbone of e-fulfilment center

As online businesses grow in size and sophistication, they require two essential systems: an order management system (OMS) to manage front-end order processing and a warehouse management system (WMS) to manage back-end order fulfillment. Eventually you’ll need tight...

5 Tips to improve your e-commerce site

5 Tips to improve your e-commerce site Whenever they are browsing online, regardless of whether it’s to buy a product/service or research something, prospective buyers often pay attention to the website’s layout. If a particular website’s design is clunky and...

Choose the right fulfilment center. Follow these guides!

A fulfillment center is often referred to as a third-party logistics (3PL) provider. Some people think a fulfillment center and warehouse serve the same purpose, which is not the case. Fulfillment centers have bigger functions than warehouses. The main role of a...

5 tips to drive repeat sales online

In the e-commerce world, a big part of driving sales and revenue each month has to involve targeting new customers and convincing them to buy for the very first time. But e-commerce businesses can’t survive in the long run based on purchases from new customers alone....