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When is it Time to Contract a Third Party Logistics (3PL)?



If you want to grow your onlines business, a third party logistics company can help you be more efficient.

Ask yourself the following questions:

DO I HAVE SPACE TO STORE INVENTORY? As your order volume grows, you will need more inventory on hand at any given time. If you’re fulfilling orders from home, it can be hard to find proper storage space. Blue Unikorn can save you from having to store product in a garage or other room in your house. Outsourcing the inventory storage allows you to track inventory more efficiently. AM I ABLE TO FULFILL ORDERS MYSELF? As your business grows, you may find that fulfilling customer orders on your own is no longer feasible. While there’s no exact threshold, there are telltale signs. If you are having a tough time keeping up, you’re likely staying up into the late hours of the night, or you are asking friends and family to help you pack boxes just to meet demand. You certainly don’t want this struggle to result in dealing with unhappy customers having to wait for their goods. ARE MY SHIPPING MARGINS TOO NARROW? When your ecommerce business is small and handling ecommerce fulfillment in-house, there may be inefficiencies (expensive rates due to low volume, shipping from one location, or lack of integrated technology. Also, there are costs associated with shipping. Supplies such as packing tape, bubble wrap, air pillows, boxes, mailers, envelopes, labels, printers, and ink—little by little, all this adds up. DO I PLAN ON SCALING MY BUSINESS? You have hopes of scaling your business, but how can you do so, if you are dealing with fulfillment issues? The fact is that every hour you spend rushing to fill new orders (packing, printing labels, driving to the post office, etc.), you are losing out on opportunities. Performing these low-dollar activities that do not generate revenue typically hold you back from achieving growth. The bottom line is the true cost of handling fulfillment by yourself keeps you from performing other tasks that translate into high revenue. #3pl #thirdpartylogistics #warehousing #inventorymanagement #fullfilment #logistics #blueunikorn #blueunikornagency #thepowerofunique

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