Earthblog

by Angela Cavallari Walker

According to a survey conducted by The Logistics & Supply Chain Forum, a large percentage of companies are not currently working with a 3PL or third party logistics company.

Of those surveyed, 23% felt that other fulfillment options were a better fit for their companies. One cited reason for this response was the belief that business owners could better control the level of service, cost and quality. Almost half of the other respondents had not even taken the time to review or weigh the option of using a third-party logistics provider.

Fulfillment outsourcing offers many opportunities for companies to control the shipping and fulfillment process without the hidden headaches associated with managing a warehouse, staff and equipment. Most fulfillment outsourcing now includes access to technological offerings such as a Warehouse Management System (WMS.) These systems are integral to the success of managing the storage and movement of inventory in a warehouse and depending on the level or tier can cost anywhere from $35,000 up to $2,500,000.

For fulfillment outsourcing companies such as, SBC Fulfillment, it was important to offer all the access to this technology as well as the control that business owners seek. "Technology continues to be a big driver in our service offerings," says SBC President Brian Schoenbaechler. SBC refers to their Warehouse Management System, SmartTurn as the "glass warehouse" effect, where companies still have the control to view what is going on with their inventory anytime from anywhere.

More reputable fulfillment services companies, such as SBC Fulfillment offer a dedicated client account manager and a customer service support team. By outsourcing their fulfillment, business owners are better able to hold fulfillment companies accountable to a higher level of service.

Perhaps the most surprising feedback from this survey is the amount of opportunity still on the table for both the fulfillment and 3PL industries.

Tags: warehousing | outsourcing | fulfillment | 3PL | WMS

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