Why You Should Choose SPExpress:
Whether you see signs of an economic recovery taking shape or not, marketers are refocusing their attentions on maintaining a competitive edge. One way they’re doing this is by outsourcing fulfillment operations to a 3PL. Here are three reasons why it may be the most important strategic decision you make this year.
Focus on a marketer's core competency - It’s impractical for most businesses to develop their own extensive operational resources, like those offered by most 3PL's. Why? Because the repetitive ins-and-outs of order fulfillment operations don’t represent a marketer's core competency. These things are relegated to the status of “cost center” for a reason. A marketer's core competency lies in selling great products and pleasing customers, not cycling SKUs through a warehouse. No matter how good marketers are at dividing their attention between both marketing and operations, diminished focus on marketing as a core competency represents unrealized market potential for them. Outsourcing to a 3PL may be the most effective step marketers ever take toward realizing their full potential.
The efficiency equation - (Cost of Input) + (Quality of Output) = Efficiency. Many factors influencing marketers are totally out of their control. Variables such as market demand, competitor interruptions and national economic health all play a part in the growth — or death — of a marketing business. The efficiency equation, however, is directly under a marketers’ influence. Lower cost inputs in the forms of warehouse space allocation, labor and shipping rates mean a higher contribution margin on every product sold. In fact, every dollar a marketer saves goes right to the bottom line. However, most likely, less than twenty five cents of every dollar sold can go to a Marketers bottom line. How do you do this? Higher quality outputs in the forms of accurate order processing, delightful customer service and expedient delivery drive happy customers to repeat purchases and friend referrals. Exceptional marketers are constantly reviewing these inputs and outputs, always trying to prevent cost-saving efforts from sabotaging quality and vice versa. So, what can you do do have a significant impact on efficiency? Outsourcing operational processes to a dedicated 3PL partner will essentially replace your efficiency equation with that of the provider. Providers have developed warehouse infrastructures, labor forces, workflows and management systems specifically to achieve optimal efficiency — the highest possible quality at the lowest possible cost. Taking on that efficiency can make a phenomenal difference for marketers.
Redeployment of capital - New customer acquisition is one of the most expensive things any marketer does. Costs saved by outsourcing fulfillment operations — in both time and dollars — represent a significant amount more capital available to invest in the growth of a marketer's core business. Meaning more new customers are added to a more efficient revenue-generating machine. In fact, opportunities for greater focus on growth don’t end with the hand off of order fulfillment alone. Many warehouse providers can also assume the orbital responsibilities around moving products such as outsourced customer care, order management, credit card processing, transportation, vendor management, purchasing, planning and forecasting. Every marketer should consider a greater focus on business growth instead of back-office operations. Leveraging the scale and efficiency of an outsourced 3PL provider is something many companies already use as a competitive advantage. Those who make the change could have a better future than they ever imagined.