For businesses of all sizes, the cost of business is on the rise. . From materials and labour, to transportation and office space, it’s becoming increasingly difficult for companies of all sizes to keep up. And while there are many factors at play here – from the global economy to inflationary pressures – one big factor is undoubtedly the ever-increasing cost of shipping and wage costs.

Energy prices are soaring and there are more costs associated with operating a business than ever before – from hiring new staff to dealing with expensive shipping and their surcharges. While it can be difficult to manage all of these costs on your own, outsourcing picking and packing orders to a professional logistics company could help you save money in a number of ways.

Firstly, it can reduce the amount of staff you need to operate your business, secondly, by reducing your fixed costs (such as building rent, electricity, gas, business rates), outsourcing picking and packing orders can turn these costs into variable costs, making them much more manageable. Less orders, less cost.

Thirdly, by outsourcing picking and packing orders, you can free up valuable space in your office for other strategic tasks. If you’re at a loss for how to manage rising business costs, or want to find out more about how a 3PL logistics provider could help you save money, read on!

Rising costs in the economy pushing up business expenses – especially energy prices

As businesses face rising costs in the economy, saving money and time is crucial. By using an order fulfilment provider, your business can save money and dramatically improve efficiency. Shipping costs are one of the main expenses for businesses of all sizes, and a logistics company can help you save time and money by automating shipping processes. This saves you time and money, which is vital during these challenging times. Additionally, they can help your business to remain competitive and grow rapidly. By automating shipping processes and saving time and money, your business can stay afloat and flourish during these uncertain times.

Picking and packing orders – what it is & how it works

A 3PL provider will link up their system to your e-commerce store or marketplace through a pre-built integration. From their your product data will automatically sync across along with orders as they come in. Once your inventory has been onboarded and stored in the 3PL’s centre, they will be able to quickly and accurately ship out your customer’s orders within a matter of minutes. Most 3PLs use clever shipping algorithms to pick the best value and most effective shipping service for the weight, size and time requirements of the order.

Picking and packing orders is a skill that takes time to master, so we suggest getting in touch with our experts and learning from us how we can help your business automate the process!

Fixed costs of picking and packing orders

Order picking and packing can be one of the more time-consuming and cost-intensive tasks for businesses. By outsourcing some or all of these services to a 3PL logistics firm, businesses can reduce the costs associated with these fixed costs. This can help them focus on other areas of their business that contribute more value to customers such as social media, marketing and better procurement. By reducing the amount of time spent on order pick and pack, businesses can save money in other areas, like shipping expenses and inventory management. Outsourcing order pick and packing services is a great way to streamline operations and save money in the long-term. A good 3PL will have high KPIs and standards and make it easy for you to keep track of orders to ensure confidence in their work.

Staff costs of picking and packing orders

Picking and packing orders is a time-consuming and tedious task that can put a strain on your staff. That’s where 3pl logistics comes in. These firms offer a variety of services that make it easy to integrate into your workflow. These services include picking and packing orders, shipping, warehousing, preparation & rework, quality checking and international logistics. In a time when costs are rising, implementing third party logistics can help you save money and re-focus to sell more and stay competitive in today’s marketplace.

Benefits of outsourcing picking and packing orders for small business owners

Small business owners are constantly trying to find ways to save money in a competitive economy. One great way to do this is to outsource pick and pack orders. By focusing on core operations, you can free up time and resources for other tasks. So, what are you waiting for? Speak with a 3pl logistics company such as Rapid Pack Fulfilment who will take care of the logistics for you!

Using a 3PL can turn fixed costs into variable costs

You know those times when costs are going up and you’re not sure how to handle it? Working with a reputable 3PL can be the answer to your prayers. By taking on the fixed costs of transportation, storage, and handling, you’re able to keep more of your profits for other purposes. In addition to this, a 3PL can help your business save money on rent, inventory, and handling costs. This is essential in these cost-sensitive times. By using the services of a 3PL, you’ll be able to cope with rising costs and stay ahead of the curve. No worrying about rising gas prices or carrier surcharges, a 3PL with contracted rates will provide you with the confidence to scale and stay above the rest of the pack.

3PL order fulfilment

 

3PL myths and misconceptions

Shipping costs can be a major expense for any business, but it’s not impossible to reduce costs and stay competitive. By choosing a reputable and experienced 3PL, your business can reduce shipping costs significantly. However, there are many myths about 3PL that businesses can avoid if they’re looking to save money. For example, choosing the wrong 3PL can lead to shipping delays and increased shipping costs. By understanding how to choose the right 3PL for your business, you can optimise efficiency and minimize cost. Furthermore, by figuring out where to take advantage of the services offered by a 3PL, you can keep expenses low while still meeting customer needs. Businesses are often worried that a 3PL is less accurate than doing the packing in-house, however this is rarely the case. By utilsing technology such as barcoding, RFID and double/triple checks they are actually likely to be more accurate than an employed team and with clear KPIs to follow and adhere to. Another myth is that 3PL logistics providers cannot handle a brand’s custom packaging and unboxing experience. This is not the case and a good 3PL will be able to take your requirements and carry it out exactly for each order providing a consistently high customer rating.

“3PLs are only for enterprise-sized businesses.”

There is a lot of talk these days about “3PL”. In short, there is no right answer – it depends on your business and what services you need. However, one thing that’s for sure is that 3PLs are not just for enterprise-sized businesses. Even if you’re small and don’t need all the bells and whistles associated with some 3PLs, chances are you can still save money by signing up with one! Plus, many SMEs have found great financial as well as time savings by working with a dedicated logistics provider. So why not give them a try? You might be pleasantly surprised at just how much they can help simplify your operations.

“3PLs have too many hidden fees.”

There are a lot of myths surrounding third party logistic companies – one of the most common being that they charge hidden fees. However, this is not true at all! Most 3PLs offer transparent pricing with a clear rate card, and you can always calculate what you’re paying for. Moreover, by using the right shipping packaging and cargo handling techniques, you can slash costs anyway. The best way to take advantage of these cost-saving opportunities? Contracting for longer-term shipping arrangements with a reputable 3PL.

“I’ll sign up with one just before Christmas”

Though it is great to sign up with a 3PL consider onboarding with them from around August/September so that all processes and people are suitably bedded in before the peak Q4 period. By doing this you can scale your marketing campaigns to capture sales in Halloween, Black Friday, Cyber Monday and the Christmas / New year period. 3PL logistics companies can get very busy during the latter part of the year and space is not always available so it is good to contact them early to secure your slot.

Frequently Asked Questions

Barcode scanning - 3PL

Is there anything else that 3PL can do for me as a business owner?

There are a few other services that third-party logistics providers can offer businesses. These include fulfilment and shipping services, as well as technology and logistics consulting or even marketing services. Additionally, some third-party logistics providers can help businesses track inventory and optimise supply chain management processes.

How can I determine if a 3PL provider is the right fit for my business?

In order to determine if 3PL is the best fit for your business, you will need to consider a few key factors. These factors include inventory management needs, shipping requirements, and pricing flexibility. You can find more information about 3PL services on the websites of various providers or by contacting customer service representatives at each company. Where possible you should be able to arrange a visit or speak with existing clients. Here at Rapid Pack Fulfilment we run regular tours and always welcome visitors to our facilities to meet the team and those who would work with your brand.

How do I price my services using 3pl logistics?

One way to price services using 3PL logistics is to calculate the total cost of shipping a product including the picking and packing. Then, divide that cost by the estimated shipping volume to get an estimate for shipping each order individually. Finally, multiply the estimate for shipping volume by the cost per order to get an estimate for how much you should charge for each order.

Conclusion

3pl Logistics providers can help your business save money on a number of fronts, as outlined in this blog. From picking and packing orders to staff costs, 3pl’s take the hassle out of running an ecommerce business. By understanding your business’ specific needs, you can make the most of a 3pl’s services and save money in the process. Regain your time and focus, allowing you to scale up your business and more profitably.

So, what are you waiting for? Contact us today to see how we can help your brand.

Published On: July 30, 2022 / Categories: Advice /

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