Most people who start a new business have dreams of their venture one day being a massive multinational conglomerate.
It will have offices in London, New York, Paris and other cities around the world. While growing and expanding is glamorous, it creates logistical issues you have to deal with. Often these issues evolve into headaches.
From human resources to having all the equipment for your staff and knowledge of local laws, a growing business has many things to deal with.
One topic you’ll have to address is of fulfillment. Should it be outsourced? Here are four reasons why you should strongly consider it.
1. Concentrate on what you’re good at
A business focuses on what it’s good at, but once it grows, it has to deal with issues such as fulfillment. If you have limited knowledge of this, you may not be equipped to deal with it. Even if you are, the time you spend filling orders is time you aren’t spending on your core business.
Whether you do fulfill orders yourself or you don’t, the expense will occur so outsourcing would mean fulfillment becomes one less thing you have to worry about.Instead of making rookie mistakes, which could cost you money, you save money because you have expert insights
2. Get expert knowledge
Just like you hire a lawyer or accountant, using fulfillment services allows you to gain access to a lot of knowledge.
Instead of making rookie mistakes, which could cost you money, you save money because you have expert insights. You can also gain access to discounts that come from working with a company that deals with massive quantities. Plus, fulfillment services know all the tricks of the trade.
What if you’re to ship to a country and the item gets stuck on the docks because you lacked the local know how?
That wouldn’t be good for business. Luckily, a fulfillment house can help you avoid this.
3. Skip people problems
Adding employees to fulfill your orders means hiring. This is a massive logistical exercise, especially if you want to make sure you hire the right people. You need to wade through resumes and then have people conduct the interview process. Once that is done, you need to train staff.
If you get big enough, you will probably need your own human resources department to deal with all issues related to personnel. This will mean the cost of your insurance is going to go up. And if staff doesn’t work out, you may have to fire employees and that is never a pleasant experience.Another warehouse could increase the amount of travel you have to do as you commute from one warehouse to the other
You can avoid this by working with fulfillment services, instead of hiring a new crew.
4. Keep your current warehouse
You may have your own warehouse, but growth means you may need a bigger—or another—venue to accommodate your new crew and equipment if you’re going to fulfill orders in-house. You would have to find a suitable location, and this requires time and money.
Another warehouse could increase the amount of travel you have to do as you commute from one warehouse to the other. If you outsource your fulfillment, you won’t have to worry about this.
After taking in all the factors into consideration, you may find that outsourcing fulfillment is not for you. That is fine. Some prefer having everything in-house or don’t feel the benefits of it exceed the costs.
At the end of the day, you have to do what is best for you and for your company. Like any decision regarding a service provider, if you do decide to outsource fulfillment, make sure that you do your research in advance.