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KMR Blog: Order Fulfillment and its Benefits

An In-Depth Look at Order Fulfillment and its Benefits:

Stay Competitive By Outsourcing Order Fulfillment

With consumers increasingly seeking faster shipping times, it may be time for your business to look into outsourcing its fulfillment needs. But what does this mean exactly and what are the benefits? Let's take a look.

What is outsourced order fulfillment?

This is where a third-party logistics company handles the orders you receive and prepares them to be shipped to the customer. These logistics companies are experts in order fulfillment and have the required procedures in place to ensure that your goods are fulfilled efficiently and accurately. This includes an inventory management system which tracks each order status as well as warehousing which has been specifically designed for the most cost-effective fulfillment.

How do I know it’s time to outsource my order fulfillment needs?

As a small business it can oftentimes appear that you are saving costs by completing your orders in house however, it is important to be able to identify the point when this is hurting your bottom line more than it is helping it.

We have highlighted the top 2 signs to look out for which typically indicate a good time to switch to using a logistics company to handle your fulfillment needs:

1. You are spending more time preparing and shipping orders than focusing on

company growth.

As the well known quote goes “ don’t just work in your business, work on your business”. It’s important as a business owner to invest time into both customer retention and customer acquisition through areas such as marketing and sales. If you find you are always trying to keep your head above water with fulfilling order requests, that may be a good sign to look into outsourcing this part of your business so you can focus on long-term growth.

2. You need more space and global expertise.

If you are looking to scale and expand your customer base internationally a global logistics company may be of use. With large warehousing space, they can store your goods for long periods of time and can often offer customisable options to fit your business needs. Also, understanding global compliance regulations and rules can become complex and if you don’t have expertise in this area it can hinder your businesses ability to expand globally. Logistics companies have a global network with expertise in numerous geographical regions which will allow you to expand seamlessly.

Outsourcing fulfillment needs will not be for every business, however, if you feel that our top 2 signs fit into your current situation, it may be a good time to look into some other options. If done correctly, the impacts to your bottom line can be significant. At KMR, we offer reliable and efficient order fulfillment services - if you want to discuss your options, please feel free to contact us here and one of our fulfillment experts will be in touch.

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