Fulfillment centers are an integral part of the shipping and receiving logistical chain in our economy. These centers serve as hubs for the storage, selection, packaging, and shipping of items that customers have ordered. They are used a lot by online companies such as Amazon. Here are six tips for a company that is looking for a new fulfillment center for your company’s products.
1. Ask for Recommendations
Check the fulfillment center’s background. Look for consistency and reliability. It is important that the right orders are selected and shipped.
2. Figure Out Costs
Look over the cost. Sometimes there are great savings because one of these centers also serves as a storage area. This could save a company from having to rent or purchase additional storage space, which would also likely be at a secondary location. https://3plfinder.com/
3. Calculate the Timeline
Review the time it takes a fulfillment center to get items into a customer’s hands. They are typically faster in the entire process, which can also help foster healthy company/customer relationships.
4. Ask About Volume Shipping Discounts
Check into volume shipping discounts. This is often something that individual sellers aren’t able to take advantage of. Most sole eCommerce sellers are not shipping enough to get these types of rates because they do not ship out enough products to qualify for volume-based discounts. Third-party centers are much more likely to get better rates simply due to the amount they ship out.
5. Research the Insurance Options
Choose a fulfillment center that can meet the company’s insurance needs. Most third-party logistics companies have several kinds of insurance including workers’ compensation, general liability, cargo insurance, and warehouse legal liability insurance. It’s important to take a look at what they offer because you’ll want to be fully covered if anything should occur.
6. Don’t Forget About Miscellaneous Information
When you are choosing a new fulfillment center for your business, you should also look at shipping speeds. Customers expect swift delivery. Efficiency can be streamlined by choosing a center that has various warehouses located in strategic places.
Additional things to consider include: features of the center’s order fulfillment software; transparency and visibility; options for branding; options for packaging; how returns are managed; and additional costs associated with storage and shipping.
In terms of packaging, it is critical to look at things such as the types and quality of boxes used. Some options include: corrugated boxes; paperboard boxes; paper bags; rigid boxes; bottles and caps; plastic; poly bags; foil-sealed bags; cotton; jute; envelopes and bubble mailers; and dunnage.
Another concern is the third-party center’s policy and management of returns. A well-run returns management team can help identify ways to keep customers happy while also keeping costs down. Further, the team should also be able to point out what are known as “serial returners,” or customers who order items simply to return them.
Lastly, it is important to organize the company’s data in order to receive an appropriate service proposal. Data, such as an SKU list, order volume and history, and the weight of a typical product to be shipped are important factors that come into play and should be kept organized.