It's not uncommon for direct-to-consumer (DTC) brands to handle logistics issues on their own without the help of a logistics supplier. While fulfilling and shipping orders yourself is a cost-effective strategy in the early stages of business, it's not a scalable solution in the long run. 

 

As the monthly order volume increases, so does the time spent on warehouse picking, packing, and traveling to the post office to ship orders. That's why fast-growing brands turn to logistics suppliers to help handle all the logistics from receiving and storing inventory to shipping orders. This way, they can spend less time on eCommerce logistics and supply chain efficiencies and more time growing their business. 

 

In this article, you'll learn why e-commerce companies often work with logistics suppliers, the top players in the industry, and the many benefits of outsourcing logistics to experts. 

 

What is a logistics supplier?

 

A logistics supplier, also known as a third-party logistics (3PL) provider, is a company that specializes in providing services to help manage the supply chain, including warehouse management, order fulfillment and shipping orders. There are several excellent logistics suppliers in the marketplace, but it is important for e-commerce businesses to take the time to find the right logistics supplier to meet and exceed business needs. 

 

Logistics suppliers typically offer.

Inventory management

Warehousing solutions

Order fulfillment

International logistics

Freight transportation

Supply Chain Management

Transportation Services

 

Self-shipping vs. working with a 3PL provider

 

Self-shipment orders are common in the beginning stages, but in the long run, there are many challenges and hidden costs associated with self-shipment and self-shipping. You must consider the cost of packaging materials and supplies, shipping and even shipping insurance. Warehouse management can also be an expensive investment; starting in 2021, rents for logistics warehouse tenants are expected to rise by 10% due to strong demand for warehouse expansion and construction.

 

In addition to costs, you must also consider where your time is being spent. Every hour you spend checking new orders, packing items, driving to the post office, and waiting in line is a missed opportunity to expand your customer base, develop new products, market your business, and more.

 

By partnering with a logistics supplier, you can take advantage of a robust logistics infrastructure that includes multiple operations center locations, best-in-class technology, digital operations expertise, digital logistics solutions and shipping discounts that save you time and money in the long run.

 

Customers also see the benefits of a logistics supplier

 

Partnering with a logistics supplier can help you stay competitive by providing the supply chain and fulfillment infrastructure you need to meet your customers' expectations. Here are a few ways logistics suppliers can improve the overall customer experience

 

Faster, more affordable shipping

Whether it's by allocating inventory or negotiating discounted bulk freight rates with carriers, there are a number of ways logistics suppliers can help you speed up delivery and reduce transportation costs with distribution centers that can fulfill orders more efficiently. By saving on fulfillment costs, you can offer your customers more affordable shipping options, such as affordable 2-day ground shipping or even free shipping, which can help reduce cart abandonment rates and increase brand loyalty.  

 

Better Order Tracking

With a technology-enabled 3PL, you get a full view of your entire eCommerce order tracking process in real time. With access to order tracking, you can outsource the order management process while maintaining control, empowering customers, and quickly resolving any issues that may arise. Without a proper order tracking system, important tracking information can be missed, leading to a backlog of emails from unhappy customers.

 

Faster Returns Process

Logistics suppliers can also help you improve your returns management process. With expertise and return management solutions, logistics suppliers can make returns easy and cost effective for customers. A streamlined returns process gives your customers more confidence to buy from you in the future and even recoup their money with an exchange.

 

Conclusion

 

Partnering with the right logistics supplier can help you scale faster and prepare for future growth. While outsourcing logistics may seem risky, it is often a necessary step in the growth trajectory of any successful business - and if you find the right partner, this step can pay huge dividends for your business. 

 

JIKEship is a fulfillment and logistics supplier that can help optimize your supply chain, improve customer satisfaction, and take your business to a higher level of success. Click the button below to learn more about how JIKEship works, request pricing and see if we're a good fit for your business, or read this review to learn more about JIKEship's logistics capabilities.