Up until now, you have been managing your own fulfillment operations for your e-commerce business. However, as your business continues to grow and expand, you might want to consider outsourcing its fulfillment operations to a third-party provider (3PL), such as Victory Lane Solutions (VLS). This can help streamline your business so that you ultimately spend less time managing inventory and more time on product development, sales, and marketing.
There are some common misconceptions that businesses may have about outsourcing fulfillment operations to 3PL providers. Fortunately, Victory Lane Solutions (VLS) has compiled a guide to debunk some of these misconceptions so that you can make the best decision for your e-commerce business.
What Are 3PL Services?
3PL, or Third-Party Logistics, is the process of outsourcing fulfillment operations to a third-party business. These specialists manage all of the day-to-day operations of e-commerce and omnichannel fulfillment. From inventory management to picking and packing, 3PL service providers make sure that this process goes as smoothly as possible. By utilizing the services of a third-party specialist to handle your fulfillment needs, you will have increased efficiency while encouraging scalability for future growth. Read this blog for more insight into the process of 3PL services.
Why Do Some Firms Choose Not to Use the Services of 3PL Firms?
Misconception #1: It’s Costly
One of the primary reasons why many e-commerce businesses choose not to use the services of a 3PL company is the cost. Hiring a 3PL company usually involves additional expenses like service and transportation fees. Some e-commerce companies might assume it is more cost-effective to handle logistics operations in-house, especially if they already have the existing infrastructure and resources. However, managing your in-house logistics operations may be more expensive as you have to handle your own warehouse operations, staff, and transportation. It has been found that fulfillment operations can cost you nearly 20% of your business’s total gross sales.
What a reputable 3PL service provider such as Victory Lane Solutions (VLS) does is provide automation and efficiency with transparent payment models. We will collaborate with you to offer a customized fulfillment solution tailored to meet your business’s needs and budget.
Misconception #2: It Takes Too Much Time
Many companies may think that 3PL providers might not be able to perform fulfillment operations in a timely manner. They might also think that 3PL providers require more oversight, leading to a slower supply chain process.
Many businesses know that fast and efficient e-commerce fulfillment services are necessary for outstanding customer service. After all, customers want their items delivered as quickly as possible. In fact, as many as 60% of customers are willing to pay an additional fee for faster delivery services. This means that it is paramount to work with a 3PL provider that provides fast shipping.
An experienced 3PL provider such as Victory Lane Solutions (VLS) offers efficient and fast same-day and next-day shipping options. We have the expertise and experience to make the fulfillment process as smooth as possible. See what our partners have to say about our lightning-fast fulfillment services!
Misconception #3: You Are Worried It Will Compromise Your Security
For certain industries such as defense, pharmaceuticals, and technology, companies may have strict protocols about their security infrastructure. These businesses might hesitate to entrust their confidential information to a third-party provider. They will understandably have concerns about data privacy, intellectual property protection, and information leaks.
Businesses want to protect their customer’s sensitive data by keeping their fulfillment operations in-house. Just because you need to hire the services of a third-party provider doesn’t mean you should sacrifice security. When selecting the right 3PL provider, ensure they have systems in place that protect important data and financial information. For added security and peace of mind, look for a 3PL provider such as Victory Lane Solutions (VLS) that has data security certifications.
Misconception #4: You Want Full Control Over Your Business Operations
When companies manage their own fulfillment needs, they often have greater control as they are able to customize and adapt their supply chain operations based on specific requirements and changing needs. Particularly for companies that have unique or complex supply chain needs, this requirement may be important for them.
What is special about working with a 3PL provider such as Victory Lane Solutions (VLS) is that we will work closely with you to create a fulfillment operations strategy tailored to your business’s unique needs. We will collaborate with you on creating transparent pricing models and building stronger customer relationships while enjoying stress-free fulfillment.
Misconception #5: Not Being Able to Meet Customer Expectations
Some e-commerce companies may have customers that have unique and varied needs. They might worry that their customers’ requirements might not align with what a 3PL service provider can offer. Instead, many 3PL providers might manage their fulfillment in-house to personally cater to their customer’s unique needs while providing more personalized services.
One of the many things you do not have to be worried about when choosing Victory Lane Solutions (VLS) as your 3PL provider is that we are not a one-size-fits-all company. Instead, we strive to cater to the unique needs of every customer so that they will be satisfied with the service. By writing handwritten notes, providing laser engraving services, and more, we add an extra layer of customization while treating your customers like our own. We are not in business just to ship your items but to provide world-class experiences to your customers. When your customers are happy, your brand will grow to new heights.
Seven Key Benefits of 3PL Services
Save Time and Money
While it may seem counterintuitive, using the services of a 3PL provider can save time and money. 3PL service providers are able to leverage better rates as they work with carriers for multiple customers. In addition, they remove the need to invest in potentially costly services such as transportation, technology, and increased warehouse space. By not having to carry out the supply chain process, you will have more time to focus on product development and business growth.
Mitigate Risk
3PL service providers help to mitigate risk with inventory management. They also have multiple regulations that can help you maintain compliance with local and state laws. Since 3PL service providers often carry insurance, your products will be protected from damage, loss, or any other unforeseen event.
Access to the Latest Technology
Many 3PL service providers have access to the latest logistics technology. These innovative tools can help with more proficient inventory management, transportation management systems, and predictive analytics. You will be able to increase efficiency by reducing time and cost.
Get Enhanced Expertise and Experience
3PL service providers have specialized knowledge in the e-commerce fulfillment market. They can leverage this insight to optimize transportation routes and reduce shipping times. By offering faster delivery times and facilitating better communication, 3PL service providers can improve customer relationships.
Achieve Scalability
By working with a 3PL specialist, you will be able to let your business grow to new heights. You will have more space to store your merchandise without having to maintain it. The money you save from letting a 3Pl specialist handle the picking, packing, and shipping can be used for further expansion.
Attain Greater Customer Satisfaction
3PL service providers can offer faster shipping times, more efficient supply chain processes, and enhanced order customization touches. Your customers will be happy with the speed and efficiency of the delivery, leading to customer retention and increased growth.
Wrapping Up
Some companies may avoid 3PL services because they are too costly or time-intensive. Firms also want more control over their business operations while prioritizing the needs and requirements of the customer.
Whether you choose to hire the services of a 3PL firm for your e-commerce needs depends on your business goals and needs. Using the services of a premier 3PL firm such as Victory Lane Solutions (VLS) can make your e-commerce business much more efficient and organized. In addition, Victory Lane Solutions (VLS) will go above and beyond by prioritizing the customer’s needs with the business’s goals. Find out how we can help you skyrocket your business growth with our highly-rated e-commerce and omnichannel fulfillment services. Contact Victory Lane Solutions (VLS) today!