One common mistake by most business owners is the “I can do it all” approach. A common area where most of these businesses fail, over time, especially when they begin to scale up is logistics. Hiring a professional international logistics company fully addresses this problem but are businesses willing to switch from in-house order fulfilment to outsourcing their fulfillment needs? This article takes a look at in-house order fulfilment and how your business may be losing money by relying on your order fulfilment capacity.
What Is In-House Fulfilment?
In-house fulfilment occurs when an online eCommerce business decides to handle its order fulfilment process itself. With this decision, the business agrees to handle all of the steps, including inventory management, picking, packing, and shipping orders to the customers. Many eCommerce businesses that choose this solution believe it to be cost-effective. However, some common problems may force the business owner to rethink and outsource.
Common Problems Encountered With In-House Fulfilment
In-house fulfilment may sound and appear cheap on the outside, but it can be costly. This decision will not only cost you money, but it can cause you to lose customers. Below are some of the common problems you’re likely to face when you choose in-house fulfilment.
1. Slow Delivery Times
As businesses grow, they begin to gain prominence and with this comes more customers and more orders. More orders threaten your business’ order fulfilment capacity and may lead to slow processing and late delivery times. Customers are often unforgiving of late deliveries and may take their orders to a competitor over such issues. You can avoid losing customers to slow or late delivery times by outsourcing your order fulfilment needs.
2. Inaccurate Orders
Similar to slow or late delivery times, the higher the demand for your product, the higher the chances of mix-ups. Customers may sometimes excuse late deliveries, but wrong deliveries will cost your business more money and customers. Your in-house workforce may be incapable of handling the bulk of the new orders coming in while also maintaining order accuracy. You may choose to invest in more employees or technology, but this may also cut into your profit. A good way to save yourself from the stress associated with inaccurate orders is to outsource to established and professional international logistics companies.
Disorganized Inventory Management
To run a successful in-house fulfilment department, you need a well-coordinated system that takes stock of your inventory and establishes a process that ensures customer satisfaction. With increased orders, you may find this process disorganized, and this may cause you to disappoint some of your customers. Outsourcing ensures that you have fewer things to keep track of, thus focusing on your inventory to keep customers happy and satisfied.
Lack of Storage Space
Increased orders call for increased production. With increased production, you’ll require more space to store your inventory. Storage space may become an issue, especially if you run your business from a small space. You may need to incur extra costs to rent or lease a storage space or move into a larger space to accommodate your storage needs. This extra cost can be shelved by outsourcing.
Outsourcing your order fulfilment and logistic needs can save you time and energy and help you focus more on expanding your business. Need to hire a professional international logistics company to handle your needs? contact https://sfi.ca/
Strader Ferris International
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Prescott Ontario K0E1T0
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