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Scaling your retail fulfillment operations takes careful planning. Yes, fulfillment can make or break the customer experience. But it can also determine your business’s profitability, depending on how it’s handled. The delivery phase of your supply chain involves managing the transpiration of goods, selecting carriers, optimizing routes, tracking shipments, and ensuring the most timely and low-cost delivery possible. Needless to say, there’s a lot to consider.
On top of that, consumers want fast and cheap delivery. That always feels at odds with the rising shipping costs that most retailers are forced to front, at least partially. As a result, retailers are considering how to compete with the Amazon’s of the world while still protecting their margins.
The most common order fulfillment methods are to handle logistics in-house or outsource to a
third-party logistics (3PL) provider. Both options have different advantages, but choosing the right
one should be based on your company’s needs now and into the future.
3PL versus in-house logistics: Understanding your needs
The choice between 3PL and in-house logistics hinges on several factors, each crucial to your business’s unique demands. Let’s explore these considerations through our detailed infographic, designed to guide you through making the best choice for your growing retail business.
Selecting the right omnichannel technology partner
Whether you decide to outsource fulfillment or take it on in-house, using an integrated technology partner that tracks orders and inventory across all locations and fulfillment types is critical. As an omnichannel retailer, you may also be wisely using your stores as distribution centers. This strategy can dramatically reduce shipping costs while providing customers with more ways to get their goods.
It also allows for more buy online, pickup in-store (BOPIS) options, including:
- Curbside pickup or BOPIS
- Buy in-store, ship to home
- Locker pickup
An inventory management system like Square for Retail enables retailers to see the full picture of their inventory across locations and react quickly to sales or inbound inventory changes. Accurate stock reporting also helps retailers make data-backed decisions and more accurately forecast their demand. The right inventory tools save retailers time by allowing employees to easily scan, search, and update stock across locations, so you never miss a sale.
The automated inventory sell-through report is a tool that we use to really look at the future of our business. We want to look at the sales velocity, and we want to know what’s doing well. So that really helps us just discuss our numbers, and look at what we need to change, and just keep pushing forward to the future.”
Alexis Lilly → ,anager, Nappily Naturals, United States
Making the choice that’s right for your business
Deciding between 3PL and in-house logistics is not just about current capabilities but also about your strategic vision for the future. Consider how each option aligns with your business goals, customer expectations, and long-term growth plans.
