How Does a Fulfillment Company Help Your Business?

Many small businesses struggle to keep up with demand during seasonal surges.

Fulfillment companies run large centers that process and fulfill orders on behalf of other businesses. Such companies are becoming increasingly common around the country. This isn’t surprising given that fulfillment services can benefit businesses in many ways.

In this guide we will answer the question, “How does a fulfillment company help your business?” to help you understand why you should use such services.

1. Not Requiring Your Own Warehouse

Most businesses require space to store their product inventory. Such space can be difficult to find or afford if the business is located in an expensive urban area. The good news is that using a fulfillment company allows you to bypass this requirement.

This is because fulfillment companies have their own warehouses or “fulfillment centers” where they hold inventory for different businesses. This means you can utilize part of a warehouse without actually having to rent the whole space. This can in-turn help you save money on warehouse costs.

2. Getting Better Shipping Prices

Small businesses that ship a few dozen orders per day via a shipping company might not have the bargaining power that large businesses with hundreds of orders per day enjoy. These larger businesses are big clients for shipping companies and can therefore negotiate for better shipping rates.

You should know that it is possible for your small business to get cheaper shipping rates by hiring a fulfillment company. This is because fulfillment companies handle orders for multiple businesses and therefore have larger contracts with shipping companies. This gives them more negotiating power and access to cheaper shipping rates, which they can then pass onto your business.

3. Sending Your Products to the Market More Quickly

Getting new products from a manufacturing facility to the market quickly can be tricky for most businesses. Shipping company issues, holdovers, and delays can lengthen how long it takes for your products to hit the shelves. This can be troublesome for businesses that are introducing a new product to compete with an existing one and want to get the word out before their competitor’s product gains footing in the market.

HIring a fulfillment company to handle shipping can be beneficial because they will take care of any issues that arise before or during the shipping process. This will help minimize delays and ensure your products reach the market quickly.

4. Improving Customer Service

Maintaining good customer relations is vital for any growing business that wants to get ahead in the market. Businesses can set up dedicated customer service departments to ensure customer complaints are recorded and addressed quickly. However, they may have trouble preventing customer problems related to shipping from arising in the first place.

For example, if you are locked into a contract with a shipping company that is notoriously slow or unreliable, your customers won’t receive their orders in a timely manner. You can ask the company to be more vigilant around your orders, but this strategy still might not improve things.

Asking a fulfillment company to handle your orders can be a smart move because they are experienced with dispatching orders and ensuring they reach their destination on time. Therefore, hiring a fulfillment company can help you improve customer service.

5. Responding to Market Fluctuations Easily

Many businesses struggle to keep up with customer demand due to fluctuations throughout the year.

For example, a consumer electronics business might experience a surge in orders around Black Friday. Such companies might not be able to fulfill every order using their existing shipping company. However, switching to another shipping company or scaling up the contract with their existing shipping company temporarily also might not be an option.

Hiring a fulfillment company can be useful in such situations because you can scale up or scale down your operations as needed. Such companies have the capacity to handle sudden surges in demand and can shift around resources to ensure your orders are fulfilled efficiently.

6. Better Inventory Management

If your business is relatively new and isn’t staffed by experienced warehouse workers and managers, there’s a good chance your inventory management is in shambles. While most business warehouses eventually become more organized when it comes to inventory management, the learning process can be slow.

Businesses can bypass these growing pains and start benefiting from better inventory management by hiring a fulfillment company. These companies handle hundreds of orders per day for numerous clients and tend to be extremely organized in managing inventory. You won’t have to worry about searching your warehouse from corner to corner to locate an item when you have a fulfillment company managing things for you.

7. Being Able to Focus on Other Parts of Your Business

The greatest benefit of hiring a fulfillment company is being able to focus on other parts of your business. It’s no secret that small businesses spend lots of time focusing on inventory and shipping to ensure orders are being shipped to the right customers at the right time. However, this means the business has fewer resources such as staff to allocate towards other business areas.

Growing businesses must stay on their toes by developing innovative products and providing excellent customer service. Hiring a fulfillment company allows you to focus on these other areas and work towards your long term business goals.

Why Choose 3PL Bridge?

As you can see, there is no shortage of ways hiring a fulfillment company can benefit your business. If you’re looking for a reliable fulfillment company to take care of the heavy lifting for your business, please contact 3PL Bridge.

We have been offering fulfillment services to businesses of various sizes for many years and possess the experience and knowledge needed to get your orders fulfilled with minimal hassle. Please get in touch with us to learn more about our services.