In-house Fulfilment vs Outsourcing; What is better?

Breathtaking design for home living.

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Breathtaking design for home living.

In-house Fulfilment vs Outsourcing; What is better?

Nam aliquet ante porta, gravida elit interdum, luctus porta sapien justo, at fringilla felis suscipit vestibulum.

Breathtaking design for home living.

The 3PL that delivers on time, every time

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We’re not just another order fulfilment company. We’re the industry leader that delivers the highest quality B2B and B2C services to supercharge your business. If you’re looking to scale your business with world-class services, we’re here for you

What is in house fulfilment?

In-house fulfilment refers to the process of picking, packing, and shipping your customers orders without the use of third party companies, such as a 3PL. In-house fulfilment is also sometimes referred to as ‘direct logistics’, or ‘self fulfilment’, but the company may still rely on third party carriers for their shipping.

What is outsourced fulfilment?

Outsourced fulfilment, or indirect logistics, refers to the process of relying on third party companies to manage your order fulfilment. These third party companies are referred to as 3PL (Third Party Logistics) or ‘order fulfilment companies’, and they will manage your; order processing, picking, packing, shipping, and returns.

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Common issues and challenges with in-house fulfilment…

When your first starting out, in-house fulfilment is usually the best option, especially if you are unsure of how things will go. On occasions where you are expecting a high order volume (through things such as pre-sales) then it may be more beneficial to outsource.

However, when your business begins to scale and grow, you may run into issues because the entire process can be complex, costly, and time consuming. Let’s explore the most common issues with in-house fulfilment…

Slow delivery times

If you receive an influx of orders, delays are likely to occur if you only have a small team of people to fulfil them. Although you don’t really have control over how fast an order reaches the customer once it has been shipped, you do have control over the couriers you use, and how quickly orders are fulfilled.

Partnering with unreliable, slow couriers can have a negative impact on your business, since customers now expect fast shipping.

Order Inaccuracy

There is nothing worse than receiving an order, only to find out it has incorrect or missing items. Unfortunately, this can sometimes become an inevitable occurrence if a business is struggling with their in-house fulfilment. Busy periods should be one of the best times for them, but it can end up being their worst nightmare due to an inability to keep up with everything.

Poor inventory management

Poor inventory management can be the downfall of an eCommerce business. If you have too much, you’re left with limited space for new products, or you’ll pay extra storage fees. Too little, and you risk missing out on sales. Investing in good high quality inventory management and tracking systems is crucial, but these can be costly.

Limited Storage Space

As you grow and scale, you will obviously need more space. Its great when you first start out and have the ability to fulfil orders from small spaces, such as your house, but this will quickly become an issue the more and more you grow. You can always lease a warehouse yourself, but this can be extremely expensive.

High Costs overall

As you may have gathered, in-house fulfilment can become extremely costly, and you may not leave yourself enough money to put back into other areas of your business. From the storage facility, to labour costs, to packaging and shipping, to technology and other equipment… you will find that that your costs quickly add up.

Reasons why you may need to outsource your fulfilment

As a 3PL company, here are the common pain points we here from clients looking to outsource

  • Can’t get their orders out on time, slow operations overall
  • Limited network connections
  • Struggling with expiry date tracking and the FIFO fulfilment process
  • Don’t have enough money to grow and scale their business,
  • Don’t have enough time to focus on other areas of their business, such as sales, marketing, and product development
  • Poor inventory management
  • Struggling to handle returns
  • Struggling to handle demand, seasonal peaks, etc.
  • High costs on storage, shipping, and packaging
  • Poor customer satisfaction overall
  • Don’t have access to proper software or technology
  • Can’t enter the global market, too expensive
  • Struggling to manage orders across multiple platforms

Entering The Global Market Has Never Been Easier With Our Global Shipping Options

Homeware; Exploring the growing market…

What is in-house fulfilment?

In-house fulfilment refers to the process of picking, packing, and shipping your orders without the use of third party companies, such as a 3PL. In-house fulfilment is also sometimes referred to as ‘direct logistics’, but the company may still rely on third party carriers for their shipping.

Homeware; Exploring the growing market…

What is outsourced fulfilment?

Outsourced fulfilment, or indirect logistics, refers to the process of relying on third party companies to manage your order fulfilment. These third party companies are referred to as 3PL (Third Party Logistics) or ‘order fulfilment companies’, and they will manage your; order processing, picking, packing, shipping, and returns. Some companies offer extra services, such as; kitting, bundling and assembly, customer service, general rework, and more. Each company is different.

Homeware; Exploring the growing market…

Common issues and challenges with in-house fulfilment

When your first starting your business in-house fulfilment is usually the best option, especially if you are unsure of how things will go. On occasions where you are expecting a high order volume (through things such as pre-sales) then it may be more beneficial to outsource.

However, when your business begins to scale and grow, you may run into issues because the entire process can be complex, costly, and time consuming. Let’s explore the most common issues with in-house fulfilment…

Slow delivery times

If you receive an influx of orders, delays are likely to occur if you only have a small team of people to fulfil them. Although you don’t really have control over how fast an order reaches the customer once it has been shipped, you do have control over the couriers you use, and how quickly orders are fulfilled.

Partnering with unreliable, slow couriers can have a negative impact on your business, since customers now expect fast shipping.

Order Inaccuracy

There is nothing worse than receiving an order, only to find out it has incorrect or missing items. Unfortunately, this can sometimes become an inevitable occurrence if a business is struggling with their in-house fulfilment. Busy periods should be one of the best times for them, but it can end up being their worst nightmare due to an inability to keep up with everything.

Poor inventory management

Poor inventory management can be the downfall of an eCommerce business. If you have too much, you’re left with limited space for new products, or you’ll pay extra storage fees. Too little, and you risk missing out on sales. Investing in good high quality inventory management and tracking systems is crucial, but these can be costly.

Limited Storage Space

As you grow and scale, you will obviously need more space. Its great when you first start out and have the ability to fulfil orders from small spaces, such as your house, but this will quickly become an issue the more and more you grow. You can always lease a warehouse yourself, but this can be extremely expensive.

High Costs overall

As you may have gathered, in-house fulfilment can become extremely costly, and you may not leave yourself enough money to put back into other areas of your business. From the storage facility, to labour costs, to packaging and shipping, to technology and other equipment… you will find that that your costs quickly add up.

Homeware; Exploring the growing market…

Reasons why you may need to outsource your fulfilment…

As a 3PL company, here are the common pain points we here from clients looking to outsource

  • Can’t get their orders out on time, slow operations overall
  • Limited network connections
  • Struggling with expiry date tracking and the FIFO fulfilment process
  • Don’t have enough money to grow and scale their business,
  • Don’t have enough time to focus on other areas of their business, such as sales, marketing, and product development
  • Poor inventory management
  • Struggling to handle returns
  • Struggling to handle demand, seasonal peaks, etc.
  • High costs on storage, shipping, and packaging
  • Poor customer satisfaction overall
  • Don’t have access to proper software or technology
  • Can’t enter the global market, too expensive
  • Struggling to manage orders across multiple platforms

Now let’s explore the benefits of outsourcing your fulfilment…

Increasing customer satisfaction through your fulfilment strategy…

Giving your brand a competitive edge; exploring your fulfilment options…

Customer satisfaction is at the core of any business’s values. This is why timely and accurate order fulfilment is crucial when ensuring that your customers are satisfied from start to finish. A high level of customer satisfaction helps you;

  • Build a loyal customer base
  • Encourage repeat orders
  • Increase your level of customer retention overall
  • Most importantly- grow your business and drive sales through other things such as reviews, positive word of mouth thanks to a high level of customer satisfaction.

Partnering with a fulfilment company can help you increase and maintain your customer satisfaction levels through quick fulfilment, speedy delivery, and a high level of order accuracy.

What are the benefits of outsourcing?

There are many benefits when it comes to outsourcing your order fulfilment, which we will explore below…

cost effective solutions…

As mentioned, a fulfilment company aims to provide cost effective solutions for things such as;

  • Storage/warehousing
  • Packaging
  • Labour costs
  • Shipping
  • Systems and Software

Running a business can be quite costly as it is, from the costs involved in manufacturing/buying your products, down to the costs involved in shipping your products to your customers- it quickly adds up. Fulfilment companies generally have strong relationships with a variety of suppliers and couriers allowing you to leverage their buying power to get cheaper rates. Not only this, but you can get cheaper rates on storage/warehousing and labour since the overall cost is divided amongst a variety of different clients meaning your overall costs are reduced.

Time Effective solutions…

As well as providing cost effective solutions, a 3PL company can also provide time effective solutions by handling things such as;

  • Picking, packing
  • Shipping
  • Kitting and Assembly
  • Customer Service
  • Inventory Management

All of the above tasks can be time consuming, and you may find that you don’t have time to focus on your sales, marketing, or product development. This is why a 3PL can be beneficial to you, since you’ll have more free time to focus on other, equally as important areas of your business.

Access to their network…

If you partner with a good fulfilment company, you will gain access to their network which can open up an abundance of opportunities for you.

When you partner with us, you gain access to our network of couriers, carriers, and suppliers, as well as gaining access to our global network of fulfilment partners. What does this mean for you? As mentioned, you get reduced rates on packaging and shipping, however you also gain the ability to utilise the power of cross-border selling by growing your business internationally through our network.

Improved omni channel fulfilment

With the world of eCommerce continuously adapting and changing, you don’t want to be left behind when it comes to successfully managing omni channel order fulfilment.

Omni channel fulfilment allows you to sell on multiple platforms, while all of your inventory and orders are managed from one centralised place. Managing this on your own may be tricky if you don’t have a good inventory management system in place to accompany your omni channel fulfilment. You may also struggle with demand, but a fulfilment company has the team and resources require to successfully handle demand during things such as seasonal peaks and promotional sales, allowing you to drive sales and grow your business.

Improved Inventory Management…

Inventory management can be one of your biggest downfalls if you don’t get it right. Poor inventory management could lead to;

  • Under/over-stocking an item
  • Unnecessary costs as a result of not having the correct inventory in place; too much, and you end up paying for more storage, too little and you risk losing customers or paying a rush fee with your supplier/manufacturer.

An experienced and knowledgeable fulfilment company will know how to handle your stock, and what inventory management method to use.

Improved Returns Management…

Sometimes, when running an eCommerce store you will run into returns. Returns happen for a number of reasons, but its important to remember that a returned order does not always mean you have lost a customer completely – its how you handle the return that matters the most.

Returns management goes hand in hand with inventory management since you will need to have a good system in place to make sure you are not losing out on money as a result of poor returns management. Handling returns can be time-consuming. A fulfilment company is fully trained in the world of returns, which means this is another thing they can take off your plate for you.

cost effective solutions…

As mentioned, a fulfilment company aims to provide cost effective solutions for things such as;

  • Storage/warehousing
  • Packaging
  • Labour costs
  • Shipping
  • Systems and Software

Running a business can be quite costly as it is, from the costs involved in manufacturing/buying your products, down to the costs involved in shipping your products to your customers- it quickly adds up. Fulfilment companies generally have strong relationships with a variety of suppliers and couriers allowing you to leverage their buying power to get cheaper rates. Not only this, but you can get cheaper rates on storage/warehousing and labour since the overall cost is divided amongst a variety of different clients meaning your overall costs are reduced.

Time Effective solutions…

As well as providing cost effective solutions, a 3PL company can also provide time effective solutions by handling things such as;

  • Picking, packing
  • Shipping
  • Kitting and Assembly
  • Customer Service
  • Inventory Management

All of the above tasks can be time consuming, and you may find that you don’t have time to focus on your sales, marketing, or product development. This is why a 3PL can be beneficial to you, since you’ll have more free time to focus on other, equally as important areas of your business.

Access to their network…

If you partner with a good fulfilment company, you will gain access to their network which can open up an abundance of opportunities for you.

When you partner with us, you gain access to our network of couriers, carriers, and suppliers, as well as gaining access to our global network of fulfilment partners. What does this mean for you? As mentioned, you get reduced rates on packaging and shipping, however you also gain the ability to utilise the power of cross-border selling by growing your business internationally through our network.

Improved omni channel fulfilment

With the world of eCommerce continuously adapting and changing, you don’t want to be left behind when it comes to successfully managing omni channel order fulfilment.

Omni channel fulfilment allows you to sell on multiple platforms, while all of your inventory and orders are managed from one centralised place. Managing this on your own may be tricky if you don’t have a good inventory management system in place to accompany your omni channel fulfilment. You may also struggle with demand, but a fulfilment company has the team and resources require to successfully handle demand during things such as seasonal peaks and promotional sales, allowing you to drive sales and grow your business.

Improved Inventory Management…

Inventory management can be one of your biggest downfalls if you don’t get it right. Poor inventory management could lead to;

  • Under/over-stocking an item
  • Unnecessary costs as a result of not having the correct inventory in place; too much, and you end up paying for more storage, too little and you risk losing customers or paying a rush fee with your supplier/manufacturer.

An experienced and knowledgeable fulfilment company will know how to handle your stock, and what inventory management method to use.

Improved Returns Management…

Sometimes, when running an eCommerce store you will run into returns. Returns happen for a number of reasons, but its important to remember that a returned order does not always mean you have lost a customer completely – its how you handle the return that matters the most.

Returns management goes hand in hand with inventory management since you will need to have a good system in place to make sure you are not losing out on money as a result of poor returns management. Handling returns can be time-consuming. A fulfilment company is fully trained in the world of returns, which means this is another thing they can take off your plate for you.

Increasing customer satisfaction through your fulfilment strategy…

Customer satisfaction is at the core of any business’s values. This is why timely and accurate order fulfilment is crucial when ensuring that your customers are satisfied from start to finish. A high level of customer satisfaction helps you;

  • Build a loyal customer base
  • Encourage repeat orders
  • Increase your level of customer retention overall
  • Most importantly- grow your business and drive sales through other things such as reviews, positive word of mouth thanks to a high level of customer satisfaction.

TSP as your partner for growth…

Regardless of whether you are an established business, or you’ve just started out, TSP Fulfilment can help you with our fulfilment services.

With over 20 years of industry experience, we are experts when it comes to anything from picking, packing and shipping, down to kitting and assembly and handling your returns. We are the perfect option for business. Explore our range of services below…

What is Kitting and Assembly?

Kitting and assembly is a fulfilment service that is offered by most 3PL companies. It is a process that involves compiling, or assembling different parts and components together to create one final product, bundle, or kit. It is worth noting that this then becomes one singular SKU rather than multiple.

Kitting and assembly gives you the chance to offer customised bundles, kits, and products, meaning that you can drive more sales through discounts, promotions, etc.

Homeware; Exploring the growing market…

Partnering with a fulfilment centre; TSP as your partner for growth…

Regardless of whether you are an established business, or you’ve just started out, TSP Fulfilment can help you with our fulfilment services.

With over 20 years of industry experience, we are experts when it comes to anything from picking, packing and shipping, down to kitting and assembly and handling your returns. We are the perfect option for business. Explore our range of services below…

80+ Global Fulfilment Centres

 

We integrate with over 150 platforms

 

18M Sq Ft of Global Warehouse Space

 

Storage, Pick and pack

At TSP we handle everything, starting with the storage, picking, and packing of your products.

We serve a range of markets so we have experience storing, picking, and packing a variety of different products, so we’ve got you covered regardless of what you sell.

Outsourcing your pick and pack with us will help free up your time, while also improving the entire process due to our highly experienced team of staff.

B2B and B2C Fulfilment

Regardless of whether you just do B2C or B2B, or a mixture of both, our team have the knowledge and resources required to successfully get your orders picked, packed, and shipped to your customer or chosen retailer.

While we handle your B2B and B2C fulfilment, you can focus on putting more time and money back into other areas of your business, such as your sales, marketing, and product development.

Shipping and logistics

After we pick and pack your orders, we ship them too.

We ensure you get better deals on shipping and packaging by letting you leverage our buying power, meaning you can save money and put it back into growing your business.

We also partner with a range of couriers, ensuring the needs of your business are being met through a diverse choice in reliable couriers.

Amazon FBM, FBA, SFP…

We are your one stop solution for all Amazon seller services, including FBA, FBM and SFP. With over 20 years of industry experience you can be assured that we are fully equipped to support you..

So regardless of what Amazon service you’re using, or if its a mix of all 3, we’ve got you covered. Check out our Amazon page for more information regarding our Amazon fulfilment services.

Inventory & Warehouse Management

Our cloud-based system, MintSoft is easy to navigate and provides you with real time updates so you can always make informed decisions about your stock.

We also run our own in-house system that can provide accurate information for the following;

  • Notify you of stock replenishment needs
  • Notify you of when and when not to re-order
  • Ability to track inventory
  • Ability to automate orders
  • Respond to trends

Returns Management

Returns are inevitable when it comes to your eCommerce business, but managing them correctly is a critical aspect on 3PL services. Here at TSP, we will handle the entire process from start to finish, helping you to main a high level of customer satisfaction.

So, never worry about handling a return again, because TSP has you covered.

Carbon Neutral Fulfilment

Are you a sustainable business? Looking to become more sustainable? Working with us means you can do your bit for the planet too, since we are a certified carbon neutral 3PL company.

Kitting, Bundling, and Assembly

Do you sell custom bundles or kits? We’ve got you covered. Our team is trained in kitting and bundle building, so you can be assured your customers will receive their orders in an accurate, timely manner.

Global Fulfilment

Do you require international shipping, or are you looking to expand into global markets? We’ve got you covered with our extensive network of couriers and global warehouses.

Explore our global fulfilment solutions page to see how we can help you dominate the global market, right from the heart of Newcastle.

Customs Bonded Warehouse

Here at TSP we are one of the very few Newcastle based order fulfilment companies with a dry bonded warehouse license.

Our network of freight forwarders means you can easily utilise the power of cross-border selling, allowing you to boost sales and drive growth.

Fulfilling orders for a range of markets…

At TSP, we are able to serve a range of markets within the eCommerce industry, demonstrating our flexibility when it comes to your order fulfilment.

Fulfilling orders for a range of sectors…

At TSP, we are able to serve a range of markets within the eCommerce industry, demonstrating our flexibility when it comes to your  fulfilment.