Logistics is an essential part of any business. As an example, 63% of online shippers will abandon their carts due to high shipping costs and 36% will abandon if they think the order will take too long to ship. Effective end-to-end fulfilment processes are critical to the success of any business – not just e-commerce.
This raises the question for business owners: Which is best, outsourcing logistics to an expert or attempting to manage the entire process in-house? There are pros and cons to both; ultimately the decision you make will depend on your business and how it operates.
In-house fulfilment pros and cons
Owning the entire fulfilment process from end to end includes multiple, complex stages such as inventory management, warehousing, last-mile delivery and reverse logistics (returns) if applicable. However, managing fulfilment yourself gives you control over every step; it allows you to deal directly with customers, offering the customer services you want your brand to offer, and allows you to align delivery, warehousing and more with your company’s goals, values and wider processes.
But these bonuses come at a cost. Being in charge of every fulfilment process means investing in and maintaining the entire supply chain. This can extend as far as owning the entire delivery fleet (and repairing it), warehousing expenses including the cost of staff, and any additional logistics software of technology, for example to monitor stock levels.
Another harder cost to quantify is that of time. By focusing your time on fulfilment, your attention is taken away from core businesses processes and activities that could be growing your business.
Outsourcing logistics – is it right for your business?
Outsourcing your logistics is a great way to simply hand over the entire complex fulfilment process to the experts. If you’re struggling to manage your logistics, outsourcing can be a cost-effective solution that saves you time and cuts a lot of hassle out of the day to day running of your business.
When outsourcing you immediately save on the cost of warehouse space and staff and delivery vehicles, as these are all provided by the third-party logistics provider (3PL). Your chosen logistics partner will also have established supply chain technology, transport and warehouse management systems in place which are now at your disposal.
One of the main advantages of outsourcing your logistics to a reliable 3PL is that your logistics requirements will now scale automatically with your business. While your business is growing, you don’t have to worry about taking on additional warehouse staff or monitoring inventory levels – your logistics partner can monitor this for you and support your growth, ensuring any adjustments you need to make to your supply chain won’t be costly or time-consuming.
Trust the experts
Whether you decide to fully outsource your logistics to a third party provider or opt to manage your own supply chain, the experts at Sprint Logistics are always on hand to advise, guide and support you.
From sourcing forward stocking locations to optimising freight solutions, Sprint Logistics has the know how to help your business thrive – get in touch today to see how.
