The Short Answer, Now.
It’s no surprise that the retail industry’s transformation over the past two years has seen a rise in all things ecommerce. Direct-to-consumer (DTC) brands experiencing rapid growth, which is slated to grow to $175 billion by 2023, are looking to logistics professionals for help. As volume increases, so does the time needed to fulfill each order. These additional hours picking, packing, and shipping can potentially cripple new business. If the time it takes to fulfill each order is greater than the time spent on growing the business, outsourcing logistics services is key to sustain growth. Here is a simple formula to follow:
Order Fulfillment > Business Growth = 3PL is Needed
What types of logistics services are typically offered?
- Transportation Services
- Freight Shipping
- Warehousing and Inventory Management
- Order Fulfillment
- Supply-Chain Management
What are some benefits to partnering with a 3PL?
By outsourcing with the right 3PL, growing brands can focus on what’s happening next. Additionally, partnering with a logistics service provider to handle day-to-day operations frees up more time for product development, marketing, and other profit focused tasks.
Access to a Broad Network
Hiring a 3PL gives prioritizes network expansion and overall reach. Brands can save on fulfillment costs by bulk discounts on shipping and insurance rates. Many 3PL’s have thousands of carriers that they have work with, so freight isn’t sitting idle. Furthermore, businesses can offer competitive pricing and savings for their customers.
Experience
Navigating logistics services alone can lead to costly mistakes. Leveraging the experience of the right 3PL can significantly reduce those costs. Additionally, a dedicated team of professionals to tackle issues in a timely manner. Data analysts drive costs down by finding cost savings are more efficiency in the workflow.
Technology
Logistics services run on data. Having full visibility at your fingertips is a worthy investment. Utilizing the right technology to optimize workflow is a cost-effective way to streamline the logistics services needed to sustain growth. Connecting to a 3PL’s infrastructure enables ecommerce brands to fully remove themselves from picking, packing, and fulfilling orders.
In conclusion, most people wouldn’t attempt to replace the engine in their car without seeking out a professional. It’s time to stop self-shipping, buying supplies, packing orders, paying for postage, and driving to a shipping center or post office. Spend that energy and time on product development, marketing, and customer relationships.
ITF Group offers innovative logistics services for brands both big and small. From startups moving out of their garage and into their first warehouse, ITF Group’s team of logistics services professionals are answering questions, and developing solutions to drive business forward, now.