fulfillment order - important solution for saving time and costs?

[inkogito]

Who has experience with fulfillment? Because no many people know about this possibility of logistics services of distribution. Order fulfillment is storage and warehousing, inventory control, pick and pack services, shipping of goods - third party logistictics or logistics outsourcing. Its cheaper than own warehouse and stockkeeper. what is your experience?

[broudie]

I used to do order fulfillment in-house and hired my relatives to do the work. When my business got larger, I outsourced to a 3rd party.

It was much, much cheaper to outsource order fulfillment than to do it on my own. Trucking is cheaper when using contractors than renting your own trucks. Warehouse space is cheaper. Supplies like boxes are cheaper because they buy in bulk. Shipping is cheaper because an order fulfillment company has bulk rates. Integration with shopping carts is better. Best of all, they keep working during bad weather and holidays.

Most of my stuff comes from abroad, and now all I do is to call my customs broker to deal with the ports, after all is done he has the goods trucked over to the warehouse. I don't even see the inventory. Probably the most time-saving thing I have ever done for my business

[Fulcrum]

How orders get fulfilled all depends on the type of business. Broudie's model wouldn't work for myself nor the places I have worked at.

My manufacturing is done on a make to order basis with delivery in generally 2-3 weeks. My stock is kept in as raw a form as possible to enable me to quickly get started on an order when they come through.

[RobertL]

Good point about people being unaware of the existence of this industry. I run a fulfillment business in Sweden. We serve mainly small businesses, a lot of new startups, startups by first time entrepreneurs. Many of them are unaware of what tools are available for them to grow their business. It's a big world and with the help of a good network of fulfillment hoses you can grow your business much faster than if you're just sending products out on your own.