How To Reduce Costs When You Outsource Your Fulfilment

March 7, 2014

As order fulfilment is one of the most important parts of any business, it is essential that it’s done properly, which often means investing a lot of money into setting up an efficient supply chain, particularly if you’re just starting out.

If you’ve chosen to partner up with a fulfilment centre then you won’t have to worry about the big decisions regarding your order fulfilment – the professionals will take care of all that and it will usually cost less than if you were taking it all on yourself.

But whether you’re outsourcing all or just part of your fulfilment needs, it’s still possible to lower your overheads even further with a few simple changes on your end:

Let’s take a look at how you can reduce your order fulfilment costs

Try “kitting” your products

Kitting is the industry term for combining or preassembling prod just starting out.ucts into ready made packs, such as popular 2-for-1 deals or items that people regularly purchase together. If you are able to do this before sending your products to your fulfilment house, you can end up saving a lot of money per item because the fulfilment house spends less time putting together the packages themselves.

Double check your orders before sending them out

Taking the time to check your products before they are sent to your fulfilment house can reduce mistakes that must then be dealt with by the fulfilment company, or even returned back to you to fix, the cost of which can eat into your profits unnecessarily.

Reassess your workforce

When you have established a relationship with your chosen fulfilment house and everything is running smoothly, it might be time to take a look over your remaining workforce and see where there are excess bodies. You don’t necessarily need to cut your total number of staff in two; you could use the now freed up employees to increase the marketing and advertising side of the business, encouraging growth.

So those are just a few of the many ways to lower your costs even after you’ve outsourced your fulfilment, and the best part is they’re simple to put into practice and won’t cost you a thing!

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