Walt Disney Early Days
As you know, it’s always my priority to research the trending business topics. Lately there has been a lot of discussion over whether companies are losing too much profit with mega online retailers that provide logistics support for businesses that ship products to customers. While I don’t have any direct experience with this aspect of business, I have worked with several clients in the industry that need support of their supply chain management. While many would like to keep this part of the business in-house, it’s just not feasible or a good idea for most. We look at one Los Angeles 3PL company, owd.com/third-party-logistics-los-angeles.php to find out the pros and cons of using bigger box warehouses to handle logistics.
Keep in-house or outsource Supply Chain Management
This debate is not usually entered into until a business has come to the end of warehousing their own product from a small garage or several small garages. When they get to the place where order fulfillment is taking too much time away from actually growing the business, it’s time to start considering the options. Since many companies grow from a garage, the ancillary industries of outsourcing shipping and fulfillment has grown as well. Some businesses do only fulfillment, consider Amazon or Shipwire. These businesses have all the infrastructure to house, pick, pack and ship products to customers. And none of the customers they ship to (in many cases) are receiving products as the company they purchased from. For example, if you go to amazon to buy a Sony headset, you’re going to receive it in an Amazon box, not a Sony box. So the product belongs to Sony but the branding and delivery belong to the 3PL company. But not in every case.
The growing number of small to medium sized businesses who rely heavily on branding understand the importance of getting their products to their customers on time and from the brand, in a branded box. This is where the research begins and ends.
Pros and cons of using Amazon
Amazon gets traffic. End of story. The more visitors to their website, the more opportunity a business has to sell a product. But they must count the costs. If they’re spending 30% just for this service, is it really worth it? And what would it cost to have another company handle their order fulfillment services? Would they get the same level of service? All of these questions must be asked by any entrepreneurial minded individual who started a business and wants to build it while keeping as much cash in her pocket as possible.
Learn more about creating a healthy third party logistics partnership in this video:
According to Sharron in the interview, it’s important for companies to “date” and get to know each other. This way, each party will have the opportunity to understand business goals and to set up a long-term relationship that is mutually beneficial.
Do your homework. Find a company that understands who you are as a brand and will deliver your brand. Get in touch with the company who has done research for this post, source: One World Direct, and see if there are “sparks” that fly. Good luck and Good job!
AAJ is one of the leading warehousing company that serves pan India. We offers complete warehousing services, third party logistics services, transportation services and supply chain value added services across India. Our target is customer satisfaction and for that we follow the core values like efficiency, transparency, accuracy, innovation.
উত্তরমুছুনTop Logistics Companies In India