Professional Order Fulfillment Companies Can Boost Profits

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    Apr 29, 2014
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Professional Order Fulfillment Companies Can Boost Profits Photo by Xpertful Fillment

Outsourcing used to be something that businesses would try to hide for fear of a consumer backlash. But as time has gone by, the idea of outsourcing services has become part of the way companies do business. The big reason that companies welcome outsourcing now is because of the growing number of American businesses that are offering professional services to organizations around the country.

When a company looks to outsource a process, it is trying to focus more money on its core competencies. For example, order fulfillment companies will warehouse and ship products for customers. A shoe manufacturer can put more money into its manufacturing process because it is saving money by not having to warehouse its entire product and worry about fulfilling orders.

Professional order fulfillment companies usually come in the form of companies known as drop shippers. The process of drop shipping is when a fulfillment company ships a product to a customer, but puts the manufacturer's information on the packaging and the packing slip. The manufacturer can worry about creating better products and leave the shipping problems to the order fulfillment company.

Thanks to professional fulfillment companies, manufacturers no longer have to worry about rising facilities costs due to a need for more warehouse space. Since the finished products are sent to the warehouse facilities of the order fulfillment company, there is no need for the manufacturer to spend money on warehousing expansion projects.

Another benefit of outsourcing fulfillment is that the manufacturer does not have to worry about upgrading logistics systems. All of those concerns are transferred to the fulfillment company. The fulfillment company also takes on the responsibility of maintaining profitable working relationships with shipping companies and other logistics organizations.

Manufacturers are starting to outsource their fringe processes so that they can focus more resources on core business functions. An auto parts manufacturer should not have to invest millions of dollars into becoming a professional order fulfillment house, because that is not what the company of automobile parts does for a living. By transferring fulfillment responsibilities to a professional organization, the manufacturer saves money and improves shipping efficiency.

In the end, the process used by order fulfillment companies is seamless to the customer. The manufacturer appears to have warehouses all over the world, because those locations show up on the information that customers get when they receive their products. The manufacturer benefits from the illusion that it has a larger network of locations that it really does, and the customer gets their product on time. Outsourcing fulfillment duties to a professional organization is a winning proposition for a manufacturer and its customers.

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