Fulfillment  •  2 minute read

What to Do When Product Sales Are Outpacing Your Supply Chain

STORD

Marketing and selling the product line is the priority for most business owners. But the desired result, an exponential increase in e-commerce order volume, can ultimately lead to higher customer dissatisfaction and fewer orders down the line if the fulfillment process isn’t prepared to handle increased complexity. 

You’ll know when incoming orders are starting to outpace your in-house fulfillment solution when shipping costs are getting outrageous, customer orders are being delayed, and you are spending more time on the supply chain than on your core business. Customer expectations are higher than ever since consumers have become accustomed to Amazon-like affordability and speed, so a poor delivery experience just one time can keep a customer from coming back. Even slow shipping options during check-out are a leading cause of cart abandonment. 

To ensure your supply chain can grow with your business, make the jump to outsourced fulfillment services. 

Make Order Fulfillment Your Growth Engine

Optimizing fulfillment operations doesn’t just mean making it cost-effective; it’s optimizing for the long term as an engine fueling your business. Doing it well pays off, allowing businesses to grow quickly, expand to new markets, and be prepared for sudden spikes in demand without missing a beat. If the supply chain continues to lag behind an e-commerce business, demand for fast shipping and low costs will surpass demand for your products, leaving room for a competitor to pull ahead.

The Benefit of Outsourcing Order Fulfillment over Expanding In-House Operations

Reason #1: Warehouses are expensive, especially if you need more than one to support a nationwide fulfillment network.

  • Building rental/build-out: Warehouse space is a large overhead expense with long-term lease commitments. You’re stuck paying for the same amount of capacity year-round, regardless of whether your business ends up needing more or less.

  • Staff: The expense and responsibility of hiring and onboarding warehouse personnel, from floor managers to forklift operators to customer service associates falls to you, as does insurance risk and OSHA compliance.

  • IT costs: You’ll need to source and purchase a Warehouse Management System, as well as have IT resources on hand to support that system and integrate it into any of your e-commerce marketplaces. 

For more benefits and a checklist of the five things to look for in an outsourced fulfillment partner, download the free guide: https://lp2.stord.com/when-to-outsource-your-fulfillment-guide

Original Publish Date: June 09, 2021