Ship like a PRO - How to ensure Efficiency in your e-commerce logistics?
How do you ensure efficiency in e-commerce logistics?
Efficiency in all operations is crucial to compete with global markets. Operations excellence is a key factor in logistics. You need to tackle many must-win battles in order to compete with the fast growing online store market, where anyone can sell anything to anywhere.
By outsourcing logistics operations, online retailers can also ensure that warehouse facilities are being kept up-to-date with digitalization, freight contracts are being negotiated yearly and delivery peaks are met. In addition, international deliveries and shipments with customs practices are done accordingly. In fact, over 85% of Fortune 500 companies are using 3PL partners.
Stick with your Core Competencies
For most online retailers it is more productive to focus on adding value for customers rather than the logistics chain. Sales and conversion can be increased by improving customer relations, marketing, sales actions or by SEO optimizing the site. Most online store owners are the best experts of their products, their customer segments and their marketing activities. If that is your core competence, you might want to leave the logistics to the experts in that field. Choosing the right third-party logistics (3PL) provider can bring a lot of benefits on the table.
Efficiency in the logistic chain with a 3PL partner
For an e-commerce businesses, third party logistics makes life easier, because they handle and take care of order fulfillment, giving owners time to focus on making sales. This is why it is so important to find the right 3PL partner that perfectly suits for the needs of your business. When choosing a 3PL partner, here are some benefits to consider:
Focus on growth
Outsourcing storage and shipments can free up time for an online store owner to focus on online marketing and sales as well as online store site optimization and product descriptions, thereby generating growth. With the right 3PL company, you also can test new markets with low risk.
Logistics services with experience
Outsourcing order handling to an organisation whose core business is picking, packing and shipping, helps you to know that orders are executed much more efficiently than by handling them yourself. For many business owners, the supply chain is not their first area of expertise, which can make optimizing logistics more challenging. When outsourcing, you can rely on in-depth industry knowledge as well as a proven success. OGOship has designed its warehouse management system and value-added services to meet the demands of growing online stores.
No fixed costs and ease of scaling
If you are growing or entering new markets, or even experience seasonal changes, inventory levels and shipment needs naturally vary. It may not be possible to accurately predict the amount of warehouse space or the volume of shipments that your online store needs, but with outsourcing, it is easy to scale operations with minimum risk.
No need for long-term contracts
Most 3PL partners have a flexible pricing model. This usually means, the more you ship, the less you pay per order. 3PL also enables flexibility on seasonal changes. Renting your own warehouse, hiring warehouse staff and setting up a logistics network is a fixed cost, but with a 3PL partner, you are charged monthly for the storage used in the warehouse, which can lead to huge cost savings, especially during non-peak seasons. You will also outsource the HR for warehouse staff, as they will be responsible for finding and retaining skilled personnel.
Continuous improvement & future trends
Your 3PL provider should offer advanced technology solutions. This will make them more beneficial as partners, as they will be able to increase their productivity and even decrease labor costs. By utilizing the right technology, processes and services can be optimized and automatized. You should also make sure that the integrations offered by the 3PL company are compatible with your systems. Variety of different warehouses enables you to find the best solution for your online store for each state of your growth. Sometimes local, manual warehouses can offer the best solution, but in some cases, automated warehouses placed in strategic locations are the best way to go. You should be able to ship locally and globally with the partner you choose. A multi-warehousing option means you can always ship your orders at the minimum distance possible with the best possible shipping rates.
The cheapest is not always the best
When outsourcing one of your core functions, you need to make the decision carefully. You need a reliable company that is a perfect fit for your long-term needs. You might want to think about multi-warehousing, warehouse locations, scalability, integrations to online store platforms, etc.
Read more how to find the perfect 3PL company for your order fulfillment
Why choose OGOship?
OGOship makes it possible for companies to easily outsource their entire physical goods warehousing and logistics. We specialize in e-commerce logistics. The key values used in our service design are: “ease of use”, “simplicity” and “full automation”. OGOship offers multi-warehousing and green options for order fulfillment. Outsourcing your warehousing and logistics couldn’t be easier! Just a couple of clicks and you’re go!