Oct 23, 2017 8:43:52 PM
Someone else processing your orders sounds scary. How on earth could an outsider be able to handle all the complexity that is involved in picking your order from the warehouse shelves, packing it neatly with that branded sticker just in the right place, not to mention shipping the order to the right address within 24 hours from receiving it? Well, actually, quite easily. I would dare to say they might even do it better than you.
That is correct. But remember that tailoring your services to meet the needs of your customer is what differentiates you from your rival. Being truly unique comes with trade-offs, but don’t let them scare you.
Giving the logistics operations to another party necessarily means some extra complexity. The added value of the outsourcing must be bigger than the added level of complexity and the challenges it brings. This is sometimes hard to calculate and therefore experience is the best teacher.
On a concrete level, the added complexity means visits to the warehouse, a lot of exchanged emails, a technical integration with the warehouse system and one extra group of stakeholders with different needs and wants to deal with it. It’s nothing you can’t handle, but there are certain things to keep in mind to avoid potential pitfalls.
There are several things that can go right or wrong in the process of outsourcing and here’s a couple of ways to avoid the biggest pitfalls.
It’s easy to say that outsourcing logistics is a viable option to consider. Nevertheless, it’s the job of every ecommerce business to evaluate, whether pursuing it is the right solution for them exactly. Expertise in the fulfillment business has skyrocketed in the past ten years and in the future, even a bigger share of ecommerce businesses will most likely share the operations with someone else.
If you’re in a rather standardised business, I wouldn’t think twice of at least considering the option of outsourcing logistics. Scouting possibilities is the first step to getting your logistics operations to the level your customers expect them to be at.
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