How Can Businesses Benefit from Efficient Supply Chain Operations?
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How Can Businesses Benefit from Efficient Supply Chain Operations?

By CIOReview | Wednesday, October 27, 2021

Businesses can scale their order management and fulfillment perfectly by outsourcing to a 3PL, even during the year's busiest seasons.

FREMONT, CA: In terms of customer experience, supply chain management is the man behind the curtain. It ensures that purchased items are packed and dispatched as quickly as feasible, and it also places a premium on business cost-cutting. According to one study, most industry professionals (70 percent) believe that the supply chain operations would be a key driver for greater customer service.

As a result, any company to whom one outsources their supply chain activities should make getting the items where they need to go easier, faster, and cheaper. Fortunately, with the appropriate service, one can get precisely that. Here is how outsourcing the supply chain operations can benefit the company.

Boost the Productivity

Even if one has the most efficient systems in place for supply chain operations, there is much to be said about collaborating with a third-party logistics (3PL) provider specializing in procurement and fulfillment. They not only have the infrastructure and relationships to get orders loaded into carrier trucks faster, but they also have the infrastructure and relationships to save shipment time. However, this efficiency is not limited to traditional fulfillment techniques. By delegating order packing and picking to a dedicated fulfillment center and staff, outsourcing can improve the efficiency of BOPIS (Buy Online, Pick-Up in Store), BOPAC (Buy Online Pickup at Curbside), and ship-from-store (SFS) fulfillment.

Scale Fulfillment Operations

Peak season, blowout sales, and trendy products can put an undue amount of pressure on an organization’s fulfillment team. Not because one does not have the infrastructure positioned to manage sales, but because every company has a limit. Fortunately, because their entire organization is focused on fulfillment space and operations, 3PLs have a considerably higher threshold than retail and eCommerce enterprises. Businesses can scale their order management and fulfillment perfectly and other supply chain operations by outsourcing to a 3PL, even during the year's busiest seasons. This allows them to service more clients and consistently provide a great customer experience.

Lower Shipping Rates

It is not only time-consuming to negotiate rates with individual carriers, and it is also unpredictably volatile, as prices fluctuate according to demand and market conditions. Working with a 3PL for supply chain operations has the advantage of already having those shipping costs locked in. And they are frequently lower than what one would find in a carrier bid.