Is logistics or fulfillment service a cost for your company, or is it an investment?
There is a web store that packages and delivers the products itself. Based on an average of 15 orders a day, you have 450 monthly shipments. When you look at this data, you first think that the first step is to get a logistics freed no your hand.
However, if we go a little further into the tasks, obligations and costs involved, we will get a much more nuanced picture.
In addition to the dispatch of the package, it is necessary to take into account the handling of the package, unreceived and denied pick-up packages or warranty returns, which must be handled, reviewed and re-received.
In each of these cases, increased customer service times may be calculated and guarantee products will require a money back.
Continuous communication with the courier company is essential for deliveries and withdrawals to be carried out.
Reviewing and checking out the end-of-month courier accounts is a matter of great responsibility, as all amounts must be correct.
Dealing with customer complaints and dissatisfaction is an extremely important and delicate task, as every customer with poor experience talks about it to 9 other people on average.
Of course, you have to keep an up-to-date inventory register, otherwise there will be a mere chaos throughout the logistics process.
Now let’s look at an incoming advantage that will ultimately decide the debate in its own and outsourced logistics debate.
The name of this is: QUANTITY DISCOUNT
Since the fulfillment company has many customers, it can take delivery at a much more depressed price. This could give the webshop a competitive advantage, as it does not ask for that amount of shipping. If you ask, there’ll be more in your company’s wallet. This will result in actual profit growth that can already be measured by numbers.
It is clear that logistics and fulfillment tasks place a considerable burden on the business and the manager.
It is a false claim that it is “only” cost. In fact, it’s an investment that recoups financially and indirectly generates profits if word spreads that parcel delivery and handling is excellent and your company is a reliable store.
The survival of a webshop depends critically on the quality of the fulfillment service.
High-quality package management and inventory records require lengthy, meticulous and precise work. If this concerns your company, the load will increase, and continuous monitoring will detract from a lot of energy and time that you could devote to, for example, business development or marketing.
If you don’t want to worry that your customers will get all the packages in order and time and don’t want to think about your stock with a cramped stomach, then you should definitely think about giving out your logistics to a professional company who these increased burdens are taken off your shoulders.