Benefits of Outsourcing to a 3PL
Why use MCF for eCommerce fulfilment
Using a third party logistics provider (3PL) like MCF can give you valuable time back to focus on many other things other than the day to day stuff. We take care of all your inventory and fulfilment for your multi-channel retail with efficiency and accuracy so you can look into growing your business. This can be done by exploring other avenues for your business and tasks such as marketing, product development, selling on new eCommerce marketplaces, plus any other initiatives you may never of had the time to do so before.
What to look out for when choosing 3PL provider
Trusting someone else to take care of your day to day business needs may be a bit daunting at first so choosing the right partner is key to help your business grow.
When doing your research don’t be solely stuck on price, as the cheapest is not necessarily the best option you need to ensure the 3PL considers themselves as an extension to your business. Standards and services offered are also important factors as you are relying on the 3PL to take care of your business on your behalf, so decide whether the provider is a good fit for your business. Be clear about what your needs are and that the 3PL you choose can deliver what you want from them.
Once you have chosen then establishing a good working relationship will be needed for open feedback as and when required. Remember 3PLs are the professionals in fulfilment it can be difficult to hand over control over so many aspects of your business so trust is a must. You must trust your order fulfilment provider to do their job well, but also compare actual results to the agreed KPIs. You should always feel free to bring up any issues or aspects of the operation that you are unhappy or vice versa offer some sound feedback on when you are happy how things are being done.
3 top tips for first class eCommerce order fulfilment
There are a few key things to keep in mind when looking to improve your multi-channel retailing and order fulfilment processes:
- Sync your inventory between all relevant channels – Having the correct stock levels on both channels is key to ensure you don’t oversell products on one channel and undersell on another. This will also avoid you from running out of stock on any channels in the first place.
- Use an order management system – We use mintsoft here at MCF and this will help you keep track of all orders across all channels, and it will make it easier to process returns and refunds where needed.
- Use a fulfilment partner that is experienced in multi channel eCommerce – This will ensure that your orders are processed quickly and efficiently, and it will help keep up with increased sales and customers demands.
Below outlines some the benefits of outsourcing your fulfilment to a 3PL.
Order Accuracy – Here at MCF commit to 99% picking an packing accuracy levels so you can have the confidence orders are accurately dispatched and in turn reduce the number of errors and returns.
Faster Fulfilment Speed –with our systems, processes and people we can ship thousands of orders a day and with a next day delivery service. Equipment such as Warehouse Management System, hand held scanners for picking, fork lift trucks and a conveyor belt can help speed up the process.
Reduced Costs – we take on a lot of responsibility so you don’t have to, when you add it all up it becomes expensive, things such as staff wages, rent, equipment and utility bills, You can benefit from some great rates which are calculated on economies of scale, so better courier rates for example can be offered, which allows us to offer lower rates than if you were to fulfil orders on your own.
Improved Customer Service – our customer service team take care of any customer queries that come through and action them within 24 hours, this increases customer satisfaction and gives you a better chance of repeat business/sales.
Scalability – we can help you grow your business by providing the additional capacity and infrastructure you need as your sales increase. In fact in less than 2 years we have grown space from 1 warehouse to 4 in total.
Implementing a successful order fulfilment strategy across multiple channels will be key to your success
Fulfilling your orders in an accurate and timely manner must be at the forefront of any fulfilment strategy. Things to consider are what products you wish to sell and on what channels you are selling on. It’s down to you where you sell your products but visibility is key so you can reach your target market customers.
Marketplace fulfilment is one option due to the amount of traffic on their sites, Amazon and eBay are popular and your products will be seen on these sites. If you sell on your own website then Shopify is another tool you can use to integrate with your chosen 3PL. The benefits of selling via your own website as you don’t have to pay commission fees like you do on marketplace fulfilment thus improving your profit margin.
An important first step in implementing an effective order fulfilment strategy is to understand customer expectations and then find a way to meet those needs through your fulfilment process. Secondly, you need to streamline your process so that it is as efficient as possible. Finally, you need to constantly monitor and improve your process so that it continues to meet your customer’s needs and expectations.
Final comment
eCommerce sales are becoming more and more popular as customers are looking at buying something from their own homes with a next day delivery service more often than not. This is why Amazons Seller Fulfilled Prime services are buoyant and here at MCF any orders in before 4pm each day are picked packed and dispatched the same day with a next day delivery to the end customer.
Businesses selling online should always consider their customers needs and how they can receive a better shopping experience by offering them multiple ways to buy.
Once you’re ready to move your stock in with a 3PL it’s imperative you can trust your partner to deliver the goods to the customer on time and accurately without any fuss.
If you’re looking for help setting up or improving your own eCommerce operation, don’t hesitate to get in touch with MCF today as we would love to be part of your journey.
Get a FREE quote