Is growth ever a problem? NO...Never!
It is the goal of every ecommerce entrepreneur to have their business take off. It should be celebrated, not only by the client but the operator, as more growth means more business for each. With exponential growth, it can be difficult to manage the business as you feel you are just holding on to survive. One solution is outsourcing your fulfillment, which can ease the pain of exponential growth and helping with a plan to handle how the growth affects labor, volumes, returns, etc. You need a flexible and knowledgable fulfillment company that can react quickly.
IDS can help you with this situation by providing our years of experience working with start-ups, new product launches and changes in the operational profiles. Here's how:
Space & Shared Labor
Similar to what we have recently discussed with Holiday / Seasonal volume spikes, an advantage to outsourcing your fulfillment operation is utilizing a shared labor approach. As a 3PL, you can pull labor from other areas of the warehouse or bring in new employees to supplement growth. We have additional space that we can use for growing operation, and it is a variable cost for this growing customers. If handled in-house by the customer, these costs would be fixed and with exponential growth can be costly.
PLAN & Rely on Experience
Planning and forecasting with a large jump in growth can be difficult. Customers can rely on us to help using our experiences and knowledge of fulfillment operations to quiet these concerns. Communication is key and together we can put together an action plan to handle the increase in business.
Tiered Pricing Approach
For start-ups, an approach we have used is tiered outbound shipping rates. This allows a customer to see with growth and an increase in volumes how it affects the pricing structure. This can help companies look at to the future and understand the impact on forecasts 6 or 12 months down the road.
Hopefully, an importance has been put on IT integration between the 2 parties before the growth happens, whether it is an API or EDI connection. Avoiding a manual process of handling orders will be crucial to streamlining the process to when the orders is received to when it ships out.
You do not have to worry about how you are going to ship all your orders out when the growth period happens. It is vital to work with the right fulfillment company that has experience and knowledge on how to handle your concerns and maintain the success of the business. IDS understands this and how it is necessary to be flexible. It is complex and requires an expertise.
If you are looking for a 3PL that is able to handle your growing ecommerce operation, we're here to help. We will not be shocked when the big spike in volumes comes through and will work together to succeed.
For more information on how IDS can help your growing operation, contact us today!