Fulfillment and Distribution Pain Points: Improve by Outsourcing

Scott Hothem • February 14, 2014

Every industry has certain elements that create problems in their operations. They can originate from a variety of market factors. A major cause of pain for many companies today is order fulfillment and distribution. With the rise of online ordering and omni-channel distribution, the opportunity to grow market share has never been greater or more competitive. The Ivey Business Journal reports that customers who shop online spend more on repeat visits than they do on their initial purchase. This means the companies that are receiving multiple return visits from loyal customers are experiencing higher margins and long term profitability.

With customers expecting faster and cheaper shipping options for products, it’s becoming more difficult for businesses to manage these expectations in-house. Third party logistics providers can offer a great solution for these pain points as there is a very high cost for poor in-house logistics. Aside from the importance of earning repeat business from a customer and enjoying those bigger sales, the extra cost of returns, re-ordering, back-ordering and expediting can eat into your bottom line.

Typically in-house fulfillment operations lack flexibility, speed and accountability. These are areas where an experienced 3PL firm can pay dividends for your company. The 2012 3PL Study shows that 88% of companies view their relationship with their 3PL as successful with a focus on transparency, communication and agility.

Companies that are concentrating their efforts in their realm of expertise are able to do so by allowing a 3PL partner to oversee the fulfillment and distribution responsibilities. Peter Drucker, the famed management consultant, said, “Do what you do best and outsource the rest”. Competing in a competitive marketplace and developing new advantages is a full time job. Allowing your fulfillment services and peripheral operations to be handled by an expert partner creates time and capital for your organization to reinvest in the business. Leveraging a 3PL to increase efficiency, accuracy and margins while lowering costs can alleviate many of the pain points this new competitive landscape has provided.

Our culture of innovation and reward propels continuous improvement of customer satisfaction and ROI while also building rewarding customer, supplier, and employee relationships that only strengthen over time. Our clients know that their customers will have higher satisfaction, higher service levels, and predictable, reliable operational execution with Barrett.

CONTACT BARRETT DISTRIBUTION

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