What to Know About Fulfillment Logistics

Fulfillment logistics involves several processes that lead to customer satisfaction. It is an integral part of the supply chain and must be efficient to ensure orders are fulfilled accurately and on time to meet customer satisfaction. Here’s what ecommerce businesses should know about fulfilment logistics.

Ecommerce success relies heavily on effective fulfillment logistics. The process starts at the points of sale when a customer places an order and ends once they receive it. In between runs a gamut of processes that facilitate fulfilling the order, making fulfillment logistics similar to order fulfillment.

What is fulfillment logistics?

A series of processes revolve around fulfillment logistics. These include inventory management, processing orders, picking and packing, and shipping. Returns management is also involved in fulfillment logistics to ensure customer expectations are met and they are satisfied with their order.

Fulfilling orders is often a complex process, which is why many companies rely on third-party logistics providers, otherwise known as 3PLs. Third-party providers are equipped with advanced technology to streamline fulfillment operations and increase customer satisfaction, loyalty, and repeat business.

What are the three types of fulfillment logistics?

1. Self-Fulfillment

Fulfillment logistics falls into any one of three types. Businesses that fulfill orders in-house use a self-fulfillment strategy; in this case, usually a one- or two-person business or a large company that seeks control over their fulfillment operations opt for self-fulfillment logistics.

2. Dropshipping

Dropshipping is a second type of fulfillment logistics, whereby a business does not produce or store their goods in-house. Instead, they outsource the fulfillment to the manufacturer who then creates the goods and ships them directly to the customer in accordance to the business’s specifications.

3. Third-Party Logistics

Lastly, 3PLs can manage inventory, packing, shipping, and returns. Relying on a 3PL lifts a major weight off a business’s shoulders and allows them to focus on core operations. Outsourcing fulfillment also means businesses don’t have to invest in their own warehouses.

What are the benefits of partnering with a 3PL?

Outsourcing fulfillment logistics to the right 3PL can be a strategic asset to an ecommerce business. The 3PL helps the business increase their revenue in numerous ways. By reducing abandoned carts and increasing average order value, 3PLs meet customer expectations and further business.

1. Ship Products Faster

Customers expect fast shipping and 3PL fulfillment companies provide this important offering. A 3PL manages multiple warehouses in various geographic areas across the country, making it possible for a business to split their inventory and ship from facilities that are closest to the customer.

2. Reduce Fulfillment Errors

Picking and packing from an in-house facility or home business can lead to errors, such as packing the wrong products or mislabeling the box. However, a 3PL fulfillment center is positioned to increase accuracy with the use of advanced technology, sufficient space, equipment, and optimized labor flow.

3. Offer Best Rates

Bulk shipping discounts are another advantage of working with 3PLs. Since they work with all major shipping couriers, 3PLs negotiate the best rates and pass on their savings to businesses. Bulk discounts also apply to packing materials and square footage—which help businesses save money over time.

When do businesses need a 3PL?

While fulfillment logistics can be managed internally, there comes a time when businesses must outsource this critical part of the supply chain. Four key signs point to their need to partner with a reliable 3PL to maintain customer satisfaction and increase revenue.

1. Business Growth

A growing business must consider a 3PL. When order volume increases, the business may not have enough hours in the day or employees to keep up with growing demand. When a 3PL enters the process, it lifts the burden off fulfillment logistics by shipping orders on time and satisfying customers.

2. Lack of Storage Space

Small businesses dodge investing in costly infrastructure, supplies, and workforce by storing their products in a garage or storage unit. While this is viable short-term, working with a 3PL with ample warehouse space to cover logistics and fulfillment needs is necessary to manage inventory properly.

3. Chaotic Inventory Management

Managing inventory in a streamlined fashion is crucial to the fulfillment logistics process. But this can’t be done when businesses waste time counting inventory levels, struggle with reorder quantities, or manage SKUs with guesswork. A 3PL offers real-time data on stock levels and sets reorder points.

4. Slow Deliveries

Today’s customers expect fast shipping. But businesses with slow transit times or frequently abandoned carts may find their customers shopping with retailers who can deliver promptly. A 3PL levels the playing field by offering a range of shipping options that rival or beat those of competitors.

Efficient ecommerce fulfillment starts with partnering with OLIMP, an online platform that can help you find a reliable fulfillment warehouse provider. With a vast network of warehouses across the nation, we ensure your goods are delivered to customers in the shortest time possible—which increases their satisfaction and repeat business.

Our on-demand warehousing options are ideal for ecommerce businesses large and small, as we do not impose minimum storage terms. The warehouses in our network accommodate last-minute storage needs, pallet work and quick cross-docking services where you can drop off your freight and go.

Our network also includes specialty warehouses. Goods can be stored in cold storage facilities, HAZMAT warehouses, or military authorized spaces. Dry or frozen goods can be safely stored in any of our thousands of curated warehouses. Warehouses with slip sheet forklifts are available, too.

Redeliveries can be scheduled when original deliveries are missed. Our flexible freight storage options are also ideal when freight is rejected. As an added benefit, several of the secure facilities in our network offer the convenience of local deliveries. We meet your diverse storage needs.

OLIMP caters to a range of businesses that need either short- or long-term storage. Booking a fulfillment warehouse within our sizeable network starts by simply filling out a quote request form online. Make OLIMP a part of your successful fulfillment logistics strategy by visiting our website today.