Fulfillment Companies And Logistics
Many online companies struggle with logistics and order fulfillment, as they have spent the majority of their time attempting to structure the most streamlined operations possible. Online businesses have the strategic advantage of not needing physical presences as far as stores and display areas, and at the same time have the ability to eliminate their sales staff due to the automation of a website shopping cart. If there is any need at all for customer service personnel, it is usually not within a physical space that is also home to inventory. As a result of this strategic advantage in the sales process, online businesses lack the infrastructure to provide adequate fulfillment services as they have no warehouses or staff to take on these duties.
Logistics, inventory management and shipping and receiving are generally their own department in many large businesses, but as far as smaller industries go they are many times integrated into the responsibilities of the sales staff. The warehouse is the physical location of the store, and is often simply a dedicated area in the stockroom with employees that work on fulfillment of online orders instead of sales. Within the ecommerce world, these areas are not available as there are no stores or employees, and either they must be secured as their own independent space and staff, or another arrangement must be made. With the entire thought process of online entrepreneurs being towards the streamlining and virtualization of operations, it is a bitter pill to swallow if you have to secure a dedicated warehouse and staff simply to perform fulfillment operations. This is why order fulfillment companies are such an important development in the ecommerce landscape.
An order fulfillment company utilizes a software bridge that connects to your shopping cart system, notifying the fulfillment company directly when an order is placed on your website. The inventory that you sell to your customers is housed in their warehouse and managed by their staff, who pull the orders from that inventory and prepare it for transport to the customer. This situation removes the responsibilities of managing your own warehouses and employees, allowing you to concentrate on sales and growing your business. It also alleviates any speculation that is necessary in order to try and predict sales in the future. One of the potential death blows to ecommerce businesses is the overestimation of the amount of staff and warehouse space that is necessary. If sales do not meet projections, you are forced to cover these overestimated expenses, potentially harming your ability to operate effectively for the length of the contract you have signed. Using a fulfillment company removes these potential pitfalls, charging you only for the warehouse space you need and a small fee per order processed. Most times, these expenses are far lower than if you tried to maintain a staff and warehouse space yourself. Your inventory is positioned strategically close to your customers, and incurs the lowest shipping charges available for transport. If you are interested in fulfillment services, contact us today.