Whether you sell your product via an online store or a traditional brick-and-mortar shop, providing a positive customer experience is key to your continued success. And that means delivering a seamless order fulfilment process!
As you know, this is the art of selecting, preparing, packing and shipping a product once an order has been placed, either online or in a physical shop. Any issues along the way can cause serious problems, leading to unhappy customers and, in the end, loss of revenue.
There are two choices regarding the order fulfilment process: You can do it yourself in-house, or you can choose to outsource this operation to a company like Direct Fulfilment 365.
Today, we're looking into this topic to see exactly what 3PL companies have to offer and why you should consider outsourcing your logistics operations as part of your ecommerce fulfilment strategy - particularly if your business is growing.
The business world is stuffed with jargon, acronyms and abbreviations that can be daunting, if not downright irritating at times!
At Direct Fulfilment 365, although we use the required technical jargon, we prefer transparency, which is why we take the time to explain things to avoid confusion.
So, for the sake of clarity, 3PL stands for Third-Party Logistics.
In broad terms, a third-party logistics provider is a company that handles supply chain management, including shipping, storage, packing and all the associated processes. This can relate to large-scale freight transportation, typically business-to-business (B2B) or order fulfilment connected with direct-to-consumer (D2C) purchases.
Now that we've got this part clear, we can go on to say that 3PL fulfilment is the process of outsourcing your entire supply chain management and fulfilment operations to a third-party logistics provider.
But why would any business want to do this? Isn't it better to keep things simple and retain control over this important process? Isn't it cheaper to run these processes in-house?
It's time to look at the facts!
Have a look at our post "Best seller fulfilled prime 3PL companies".
Current statistics show that around 57% of UK ecommerce businesses have outsourced their fulfilment operations to a third-party logistics provider, and at least 50% of businesses with physical stores (i.e. they may have online facilities, but customers can order items in-store) have done likewise.
This has been a gradual transition, but the pace is accelerating due to advances in technology and the need for greater cost-efficiency in the modern business world.
How does this information relate to our quest? It's all about business growth.
Any business that doesn't grow, evolve and adapt to changing conditions and trends at a sustainable rate is at risk of failing - that's the stark reality of trading and a lesson learned the hard way by around 90% of all ecommerce businesses in the UK. Sadly, most online stores, dropshipping companies and ecommerce businesses will fold in the first four months of trading.
Let's examine the reasons for this...
Perhaps the most tragic fact about all of the above reasons is that - in the majority of cases - third-party logistics (3PL) and order fulfilment could have saved the day.
If this sounds a little far-fetched, stay tuned; we'll show you exactly how a third-party logistics service like Direct Fulfilment 365 can drastically boost your chances of success!
Growing a business can be thrilling, exciting and enjoyable, but - let’s be honest - it comes with its fair share of headaches! Orders are flying in, stock is piling up, and suddenly, your once-manageable fulfilment process is holding you back.
This is where a Third-Party Logistics provider steps in to take the pressure off, helping you scale smoothly without the growing pains. Whether you’re an ecommerce brand, a subscription box service, or a retailer looking to expand, outsourcing logistics and fulfilment to a 3PL (like Direct Fulfilment 365) could be the smartest move you make.
Let’s break down exactly how a 3PL can benefit your growing business...
Right now, how much time do you spend managing stock, packing orders, and sorting out shipping? If fulfilment is eating into time that could be spent on core competencies like marketing, product development, or customer service, it’s time to rethink your approach.
A 3PL takes care of:
This means you can step back from the operational chaos and focus on what matters - growing your brand.
We'll now dissect the three points above to see exactly where you can save money and give your business a welcome boost.
If you handle the order fulfilment process in-house, you'll need adequate storage, which means buying or renting a warehouse. With a third-party logistics company, you send some (or all - it's up to you!) of your stock to the 3PL's fulfilment centres, where the products are immediately available for processing.
So, you don't have to worry about renting or buying warehouse space!
To keep everything running smoothly and avoid errors, you'd also be advised to invest in warehouse management software, as well as staff to pick, pack and ship orders.
You need to keep a close eye on inventory to ensure that you have the right stock at the right time. It's very easy to overstock or to run out, and that's not great for customer satisfaction!
With Direct Fulfilment 365, you can be certain that our warehouse management systems won't let you down. We integrate our system with your own, meaning that you have real-time access to stock and inventory levels at all times.
This is the clever part: customer orders are processed at strategically located warehouses (or fulfilment centres), allowing for same-day dispatch in most cases. Because of this and the streamlined order fulfilment process, the customer receives their goods swiftly, leading to better feedback.
Most companies that offer fulfilment services use advanced warehouse management systems and trained staff to practically eliminate errors. These might include picking the wrong items, using the incorrect address or sending the wrong size/colour/model, etc. This is a great way to improve customer satisfaction and build your reputation as a reliable seller.
Once the order has been collected, the item (or items) are passed to a packing area where they are professionally packaged using appropriate materials. If preferred, custom packaging can be used, which is a great way of boosting your brand awareness. Besides, customers are often willing to pay higher prices for goods in branded packaging as they lend an air of quality.
Check this out "What is a pick and pack service".
A shipping label accompanies each order, bearing all the relevant information. As part of the quality control checks, the staff will ensure that this information is correct before the item is shipped out.
Most delivery services these days offer real-time tracking, so both you and your customer know where the package is at any time, which is yet another positive aspect.
If they're anything like Direct Fulfilment 365, your chosen 3PL will use reputable couriers with a proven track record of reliable service. Most third-party logistics companies establish contracts with the leading delivery services, allowing them to offer multiple shipping options to their clients.
This also enables 3PL providers to negotiate exceptionally low shipping costs, which you can pass on to the customer.
Whether your orders are heading to various parts of the UK or overseas, 3PL providers work with reliable shipping companies to make sure they get there swiftly and in one piece. Most fulfilment centres are strategically placed by major hubs (rail, road and air) to speed up the shipping process.
All reliable third-party logistics providers offer to complete customs documentation and deal with international shipping regulations, which helps to avoid delays.
Again, you reap the rewards here, as the customer will be happy that orders will arrive in good time!
Statistics suggest that around 1 in 5 online purchases are returned to the seller - though this figure largely relates to fashion and clothing sales.
Nevertheless, you need a sound returns management strategy to avoid being swamped with goods that buyers have sent back. These must be processed, checked for damage or defects, and returned (if possible) to the inventory for reselling.
All of this takes time, effort and resources that can divert you away from core operations and drain your budget.
Partnering with a 3PL company that handles reverse logistics can be a lifesaver; they will take care of everything for you at their fulfilment centres, from checking the products to re-listing them on the inventory. Some will even refurbish, repair or recycle items, and anything that can't be rescued will be disposed of responsibly.
Don’t miss our post "How to reduce returns in ecommerce".
As your business grows, so do your costs. With increased order volume, you require more stock, extra space, and more staff for picking and packing.
You then need to train staff, pay their wages and handle all the accompanying issues, such as sick pay, absences, paid leave, pensions, benefits, etc., all of which eats into your budget as well as your precious time!
Also, more stock means more warehouse space, so you'll need to consider moving to bigger premises, and that can be expensive.
Finally, your shipping costs will rise as you're dispatching more orders. In fairness, larger volumes might allow you to negotiate better rates with the leading couriers and transportation services. However, you'll rarely be able to secure the favourable rates that 3PL companies can achieve.
We've covered all the main factors and processes involved, highlighting some of the cost savings to be made and the benefits that 3PL offers.
If you're a business owner or manager, you might now be wondering if it's the right choice for you, and we're here to help you reach the right conclusion.
We realise that a third-party logistics provider may not be the best option for some businesses, but - on the whole - it will be a vital move for most, offering a lifeline to those who are struggling with the costs and the volume of orders.
In this part of our blog, we'll break things down even further to get a coherent picture of the key benefits of outsourcing fulfilment to a 3PL logistics company. We'll also reveal the extra advantages you could enjoy by signing up to Direct Fulfilment 365's 3PL services.
We ensure that our software fully integrates with your existing systems, allowing you to manage inventory and core business operations from a single point. So, you have all the data and information at your fingertips whenever you need it and wherever you are.
Our advanced software can also connect multiple sales channels, helping you meet market demands more easily without having to juggle several systems at once. This eliminates the risk of stockouts or overselling - something that makes sellers seriously unpopular!
The system generates reports and regular updates to advise you of stock levels, trending products and best-sellers, as well as other handy metrics.
You reduce costs by avoiding the need for expensive software and improve supply chain efficiency at the same time.
Allowing us to run your warehousing operations helps you avoid fixed costs. You avoid having to use capital investment to secure adequate storage space, and as your business grows, we adapt our service to suit.
You benefit from variable costs, and you don't have the hassle of seeking a suitable warehouse.
What's more, if seasonal trends or fluctuations affect stock volumes, we can accommodate these easily, whereas you'd be paying for a half-empty warehouse if you were renting directly.
Nothing kills customer satisfaction more than late deliveries, incorrect items, or poorly-packed orders!
With advanced inventory management, streamlined order fulfilment and strict quality control measures, 3PL providers will drastically reduce instances of incorrect or defective items being shipped. Your third-party provider will also use superior packaging (including branded or custom packaging) to boost customer satisfaction.
Finally, as the orders will be completed swiftly, the packages will be dispatched on time - on the same day in many cases. This allows you to meet customer expectations by getting their orders to them within one or two days, and maybe even next-day delivery!
Like most leading 3PL providers, Direct Fulfilment 365 handles your entire supply chain. We are experts in the field of transportation management, able to deal with every aspect of the B2B or D2C chain.
We connect all the links in the chain, including:
A third-party logistics company ensures that everything runs smoothly, communicating with all the various people involved and providing necessary services in between.
This gives you more control over supply, efficiency and the cost of goods, streamlining the entire process to provide cost savings.
Partnering with a 3PL fulfilment provider isn't just about efficient warehousing and dealing with your shipping requirements. In addition to all of the above benefits, you have access to invaluable advice and support and value-added services.
This is the real secret behind the success of all those businesses that have embraced 3PL.
Yes, you can save money by streamlining your business and outsourcing logistics operations. But you also gain an extremely valuable commodity: Time.
To grow your business successfully, you need a team you can trust to take care of those necessary but time-consuming tasks. With Direct Fulfilment 365, you can rest assured that our order fulfilment services are second to none and that you can rely on us to prepare and dispatch orders accurately and on time. And if you require us to look after your wider supply chain efficiency, we'll take as much care over this as our other service offerings.
The outcome of all this is that you can leave all this to us and focus on the important stuff. This will go a long way to helping you avoid all of those pitfalls that we mentioned earlier.
By outsourcing your fulfilment, you can focus on what truly matters: developing exciting new products, refining your marketing strategy, and engaging with your customers. Instead of getting bogged down by warehouse management, shipping complexities, and rising operational costs, you can channel your energy into scaling your brand.
For example, with our seamless fulfilment services, you’ll have the flexibility to launch new products faster, adjust pricing and promotions with confidence, and respond swiftly to market trends. While your competitors struggle with logistical headaches, you’ll be delivering a smooth, professional customer experience that keeps buyers coming back. Partnering with a 3PL isn’t just about making life easier, it’s about giving your business a real competitive edge.
If you’re spending too much time on logistics, struggling to meet customer expectations, or feeling overwhelmed by operational costs, it’s definitely time to consider a 3PL!
At Direct Fulfilment 365, we help businesses like yours scale effortlessly, delivering fast, reliable fulfilment so you can focus on growing your brand.
Ready to take your business to the next level? Get in touch today, and let’s make fulfilment your biggest strength!
At Direct Fulfilment 365, we take the stress out of logistics so you can focus on growing your business. From same-day dispatch to 24/7 inventory tracking, we’re here to make your operations seamless.
At Direct Fulfilment 365, we are dedicated to helping your business thrive by providing seamless logistics and fulfilment solutions. Whether you're looking to enhance your shipping options or streamline your operations, we are here to support your growth.
of consumers expect BOPIS (Buy Online, Pick Up In-Store) as a shopping option.
of consumers search for faster shipping options.
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