Size Matters
It is difficult to say that for X number of orders per day it begins to make sense to outsource your inventory to a fulfillment house, but there does need to be some volume. Oftentimes startup companies will immediately look to start outsourcing their fulfillment, but it doesn’t make sense. There is something to be said for startup companies to do their own fulfillment and learn what it takes to fulfill and ship their own orders. This allows them to gain an understanding and find the right fulfillment house in Milwaukee to meet their company’s needs when the time comes.
Significant Growth Strategies
After making it through that initial startup phase with your business oftentimes it is followed by some significant growth. You do not want this growth to be hindered by the inability to have enough space and to ship orders out. Working with a fulfillment house before hitting this heavy growth phase can help to alleviate some of the stress on the fulfillment process. Third party fulfillment companies generally have the space, labor and technology readily available to be able to quickly scale with your growth.
Inability to Growing your Business
As a business owner, your main focus should be on growing your business through sales and marketing. Often times business owners get stuck dealing with operations that does nothing to help grow their business. The toughest part is that it is hard for these owners to see it because it does not happen overnight. It is a slow process that occurs and next thing you know entire days are taken up and nothing has been done to sell or market your products. Keeping focused on growing your business is key to success. If you are not able to do this, outsourcing your operations can help free up time in your day to focus on the sales and marketing.
Significant Capital Investments Needed
For companies that are handling their fulfillment in house, there will come a time when a significant capital invest will be needed to either maintain or improve operations. This could be more space, a new WMS, or automation. At this point it might be a good idea to look at the possibility of outsourcing. Most fulfillment companies have already made the significant capital investments needed to operate their fulfillment centers. Ideally, you would be able to find a fulfillment house that allows you to fit right in without them having to make any capital investments.
There is not an exact time that says outsourcing your fulfillment should happen now. Taking the time to explore the option can provide you with some direction. Even if you find out that now is not the right time, you will begin to gain some idea of when the right time is.
For more information on how Christopher Morgan Fulfillment Services can help you determine when the right time is to outsource your fulfillment, Contact Us Today!
