{"id":2300,"date":"2021-11-25T16:41:32","date_gmt":"2021-11-25T16:41:32","guid":{"rendered":"http:\/\/localhost:10048\/?p=2300"},"modified":"2022-11-17T07:14:44","modified_gmt":"2022-11-17T07:14:44","slug":"outsourced-fulfillment-guide","status":"publish","type":"post","link":"https:\/\/mydemodesigns.com\/spectra-old\/web\/outsourced-fulfillment-guide\/","title":{"rendered":"Outsourced Fulfillment Services\/Order Fulfillment Outsourcing – A Detailed Guide"},"content":{"rendered":"
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What Are Order Fulfillment Outsourcing Services?<\/span><\/h2>\r\n
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Customers are embracing doing their shopping online from the convenience of their homes. As a business owner, there are so many things to be taken care of. The last thing on any business owner\u2019s mind is the management of a warehouse, receiving goods, and getting hands-on with the shipping process. It can get really complicated and costly to do yourself.<\/p>\r\n\r\n

At its core, order fulfillment outsourcing<\/a> involves business owners hiring a 3PL (third-party logistics provider) to manage everything involved in the order fulfillment process<\/a>. This includes managing inventory, kitting, packing boxes, shipping orders, and much more in-between. It\u2019s necessary for this partnership to happen unless the business is very, very small. Spectra<\/a> is one of the leading 3PL companies providing this solution with advanced technology to simplify everything.<\/p>\r\n\r\n

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Type of Services Offered by a Third-Party Ecommerce Order Fulfillment Outsourcing Company.<\/span><\/h3>\r\n
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Ecommerce order fulfillment<\/a> is complicated but its importance cannot be denied. The customer experience starts with their ability to order and receive your products with ease, so it\u2019s important to have a system in place to support them. Again, if your company is very small, you might be able to handle things for now. But as your business grows, it becomes necessary to find a fulfillment partner like Spectra<\/a> that you can outsource your third-party logistics (3PL) needs to. Let\u2019s talk about what your partner will do for you.<\/p>\r\n\r\n

Warehousing<\/h4>\r\n\r\n

Some 3PL companies<\/a> make things even more complicated by fulfillment outsourcing what you outsource to them by finding different warehouses with extra space to manage your distribution<\/a>. Spectra actually utilizes multiple large warehouses and does everything in-house, even going the extra mile by developing their own technology to manage inventory.<\/p>\r\n\r\n

Picking<\/h4>\r\n\r\n

The worker who retrieves your goods from the warehouse follows a customer-generated pick list right after the order is placed on your website. Spectra\u2019s pick list feeds are synchronized with the customer\u2019s Ecommerce sites to avoid mistakes on outsourced fulfillment.<\/p>\r\n\r\n

Packing<\/h4>\r\n\r\n

After the items are retrieved, the next step is packing the items so that they are ready to be shipped. Spectra always has the needed packing materials for safe shipping. The shipping label is then added to the package. Everything is triple-checked in the online system before shipping.<\/p>\r\n\r\n

Shipping<\/h4>\r\n\r\n

Spectra<\/a> has great relationships with shipping carriers that pick up packages from their warehouses daily. These packages are then shipped to your customers expeditiously along with their very own electronic order tracking information.<\/p>\r\n\r\n

Returns Management<\/h4>\r\n\r\n

When it comes to Ecommerce fulfillment<\/a>, returns are just part of the gig. When it happens, you don\u2019t need to get involved as the business owner. Spectra will take the returns back into their warehouses, facilitating the returns process. The unused merchandise will go back in stock ready to be shipped again with full notifications back to you as the customer.<\/p>\r\n\r\n

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The Benefits of Outsourced Fulfillment<\/span><\/h3>\r\n
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As your business scales, having a fulfillment partner<\/a> becomes a must so you actually have the time to market your business. Thankfully, we live in an era where there are partners like Spectra<\/a> that will handle all your 3PL needs.<\/p>\r\n\r\n

In order to make the important decision about whether or not outsourced fulfillment<\/a> is right for your business, let\u2019s take a look at what the benefits are.<\/p>\r\n\r\n

You Don\u2019t Have to Store Your Own Inventory during the Outsourced Fulfillment Process<\/h4>\r\n\r\n

This is the greatest benefit of all, saving both time and money. Whether or not you are filling up your basement or small warehouse with products and boxes already, managing storage can be an absolute nightmare. Your sales will fluctuate throughout the year, as they always do, leading to a potential shortage of space when new inventory comes. That, or you may have an equally frustrating issue being that you are paying for a bunch of space that isn\u2019t being used all the time during order fulfillment outsourcing.<\/p>\r\n\r\n

3PL companies like Spectra<\/a> have the technology to efficiently track inventory levels without you even needing to be involved. If you are still on the fence, it\u2019s important to also be aware that starting in 2021, warehouse tenants are experiencing an average of 10% or higher<\/a> increase in monthly rent. This is mostly due to the high demand for warehouse expansion and construction<\/a>.<\/p>\r\n\r\n

You Don\u2019t Have to Pick, Pack, or Ship Your Products<\/h4>\r\n\r\n

3PL partners like Spectra<\/a> handle the receiving of your products, organize them, and keep them safe and in stock. When that special moment happens where your customer makes a purchase on your website, your product is quickly and accurately picked, packed, and shipped. It can be a hassle to try to do this yourself and mistakes are common. It also becomes quite an expensive feat.<\/p>\r\n\r\n

Lower Shipping Rates<\/h4>\r\n\r\n

While we can\u2019t provide exact rates due to variability in package contents, size, and quantity, we can say for sure that the rates are lower than what you would experience yourself when interacting with companies like USPS<\/a>, UPS<\/a>, and FedEx<\/a>. Spectra has a special relationship with its shipping partners and we help our clients navigate the integration of Ecommerce and 3PL shipping.<\/p>\r\n\r\n

Reduce Operating Costs Using Outsourced Fulfillment Service<\/h4>\r\n\r\n

Think about it. If you took everything to do with order fulfillment outsourcing into your own hands, you would be paying thousands of dollars every month, not even considering all the time involved. The cost of rent alone for your warehouse would already be huge. You would also have to be paying for employees, insurance, dealing with returns, and many more hassles, all while not focusing on the most important aspect of your business; sales.<\/p>\r\n\r\n

Broader Reach Into New Markets<\/h4>\r\n\r\n

New markets will open up as you spend less of your business time dealing with order fulfillment and inventory management<\/a> and more of your time focusing on growth. While fulfillment is so important, it\u2019s likely that you didn\u2019t start your business knowing how much time and money it takes to get it right. The bigger you get, the more time and money fulfillment eats up.<\/p>\r\n\r\n

If you haven\u2019t realized it already, time is absolutely your greatest resource. With that in mind, scaling your business and working on things like branding, product development, and marketing should stay at the forefront of your goals. Smart business owners have already discovered that it\u2019s more efficient to partner with a 3PL company to save them time and money.<\/p>\r\n\r\n

Leverage Your 3PL\u2019s Volume & Experience<\/h4>\r\n\r\n

Considering all the potential problems and little-known tricks in managing order fulfillment processes, there are many issues that come about when taking things on yourself. For third-party logistics companies (3PL), this is all they do. Spectra is used to and experienced with handling large shipments, negotiating shipping rates from carriers, managing returns, and much more.<\/p>\r\n\r\n

Take solace knowing that your 3PL partner will have a network of partners to keep everything efficient and affordable. The best part is that no one on your side of the business has to become a fulfillment expert to get expert-level fulfillment.<\/p>\r\n\r\n

Technology & Analytics<\/h4>\r\n\r\n

For in-house fulfillment, companies often resort to manual processes with little technological backing. This leads to many mistakes, especially at the picking and packing stage. Spectra is one of the only 3PL companies that have gone the extra mile by developing their own technology to maximize the efficiency of the order fulfillment process<\/a>. Spectra\u2019s technology is used by their employees to avoid mistakes. After partnering, Spectra links its tech into the backend of your company\u2019s website.<\/p>\r\n\r\n

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How Do Outsourcing Order Fulfillment Services Work?<\/span><\/h3>\r\n
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Businesses frequently partner with 3PL companies so that they can save time and money, focusing on doing what is needed to grow their business. 3PL companies will receive your order information, store inventory, process orders, and handle the shipping process. This is perfect for growing businesses as managing all this becomes cumbersome, particularly handling inventory and managing shipments.<\/p>\r\n\r\n

Some 3PL companies have specialties like climate-controlled storage and variable shipping options. That type of 3PL company would be ideal for perishable goods. Others specialize in things like cars, which needless to say, take up a ton of space and can\u2019t even have a scratch on them when they get to the customer. Since the majority of Ecommerce business has products that fit into boxes, these specialties aren\u2019t needed for most.<\/p>\r\n\r\n

1. Get a 3PL Partner<\/h4>\r\n\r\n

The first step in outsourcing your order fulfillment needs is to get a 3PL service<\/a> partner. For this example, we will use Spectra. You will need to get in touch with Spectra and describe your needs through an online fillable questionnaire<\/a>. Spectra is adaptable and adjusts to support your needs.<\/p>\r\n\r\n

2. Processing Orders to Your Fulfillment Provider<\/h4>\r\n\r\n

Next, the onboarding process takes some collaboration as there is a process where Spectra has to link its network with the backend of your Ecommerce website. This is done so that electronic \u201cfeeds\u201d are sent to Spectra in real-time when orders on your website come in. These feeds contain all the information that is needed for Spectra to pick, pack, and ship the orders to the customers.<\/p>\r\n\r\n

The customers on your website don\u2019t even know that Spectra was involved at all. They can just order from your website and receive their goods without the confusion that would come from realizing a third party was involved.<\/p>\r\n\r\n

3. Deliver Current Inventory<\/h4>\r\n\r\n

You will need to ship everything that you currently have in stock to your fulfillment provider. If you don\u2019t have anything yet, that\u2019s fine. All future inventory that is purchased will go directly from the manufacturer to the fulfillment provider. What usually happens is you just give your purchase order or supplier\u2019s order confirmation to the fulfillment provider so that they can receive the products.<\/p>\r\n\r\n

4. Receive & Manage Inventory<\/h4>\r\n\r\n

This part will take some collaboration between the 3PL and your business. When the inventory tracking system is implemented and Spectra\u2019s warehouses are receiving your products, you\u2019re all set. Spectra\u2019s employees inspect shipments for damage and missing products. Afterward, they will be passed along for sorting and storage. SKU numbers and barcode labels come in handy here.<\/p>\r\n\r\n

5. Processing Customer Returns<\/h4>\r\n\r\n

Spectra<\/a> has the ability to process your customer\u2019s returns. Most Ecommerce businesses have a unique process that needs to be followed, so it takes some cooperation to set up. In general, customers will send their package back to Spectra\u2019s warehouse where it will be inspected before the return is approved. From there, it is usually put back in inventory, put on clearance, donated, or discarded. It\u2019s up to you.<\/p>\r\n\r\n

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Building a Strong Partnership with Your 3PL<\/span><\/h3>\r\n
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After finding the perfect 3PL partner, it takes some time and effort on your part to build a strong relationship with them. There\u2019s a bit more involved beyond just paying a bill. You will have to get involved. So how can you build a strong relationship with your 3PL? Communicate!<\/p>\r\n\r\n

Many businesses think of their 3PL as more of a commodity rather than a strategic partner. When that happens, there is typically a lack of information that is being sent to the 3PL, meaning that your partner can\u2019t utilize insights that they could have had into your business.<\/p>\r\n\r\n

So with that in mind, share your long-term business plans, check in with them frequently, and ask your partner what more you can do on your end to maintain and improve the flow of everything. Also, remember to organize internally, set reasonable goals together, and play nice.<\/p>\r\n\r\n

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Best Practices for Choosing the Right Order Fulfillment Outsourcing Provider<\/span><\/h3>\r\n
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Now that we understand why it\u2019s important to have a 3PL partner<\/a> and how to build a relationship with them, the question becomes revolved around who to partner with. Let\u2019s talk about what to look out for.<\/p>\r\n\r\n