Welcome to Parcelconsulting
Welcome to Parcelconsulting
Today’s consumer culture largely revolves around eCommerce because it is convenient, and it allows people to stay at home during the global pandemic. The massive overall ecommerce growth in 2020 alone has put incredible strain on logistics companies around the world, but there is no slowing down. Customers want on-demand shopping, the same way they can get on-demand television or their favorite food delivered to their doors in minutes.
With the familiar fulfillment model being turned on its head, many eCommerce businesses are at a loss for how to navigate overwhelmed supply chains while still meeting customer demand. That’s where fulfillment consulting comes to the rescue. Third party fulfillment consultants connect your business to teams of experts that can figure out the best fulfillment warehouse provider for your needs.
Parcel Consulting specializes in 3PL and fulfillment consulting for nearly all business types and sizes. Here’s how our fulfillment consulting services can help your business scale effectively today.
As eCommerce companies adjust to customer needs in a post-COVID world, third-party fulfillment has become increasingly popular. In some cases, third-party fulfillment has been the only way to keep shipments moving—while in others, it is the best way to meet Amazon’s requirements to maintain your Prime badge.
Amazon fulfillment has long been a popular choice among ecommerce sellers who did not want to handle their own fulfillment. However, as the 3PL market grew, Amazon began offering SFP (Seller Fulfilled Prime) to its merchants who wanted to sell to Prime customers directly from their own warehouses. This allowed sellers to skip the endless FBA fees and use their own branding when fulfilling orders. It seemed like a win-win. Then, Amazon conducted a review of its SFP merchants and issued new, stricter rules.
Third-party sellers who want to keep their SFP Badges must now prove to Amazon that they consistently meet the one or two-day delivery expectations of Prime. It requires a nationwide footprint with multiple distribution centers and a delivery network that spans the country and can reach any address in 48 hours. Therefore, sellers are calling in the pros for fulfillment consulting. If your ecommerce business is in this same position, a third party logistics team can help you optimize your order fulfillment so you can keep your SFP Badge and keep your customers happy.
Meanwhile, even the ecommerce behemoths are making strategic moves to speed up their order fulfillment. Amazon has expanded their warehouse footprint, turning malls into distribution centers and opening more than 1,000 micro-DCs in suburban areas. Target acquired Shipt and, more recently, same-day delivery service Deliv. The startup’s technology assists in the batching and routing of orders and will be integrated into Target’s R&D for improved delivery. Even Walmart has big plans for the rest of the year with its recent launch of Walmart Plus, a new Prime competitor focusing on same-day and next-day delivery. All of these moves are meant to close the gap between customers and the products they want delivered.
3PLs offer a variety of services from procurement to storage to transportation, but their bread and butter is, of course, order fulfillment. These companies handle storage, picking, packing, shipping and delivery for their clients and give sellers more time to focus on business growth. The two main offerings are on-demand fulfillment and outsourced fulfillment. Let’s look at the differences between them.
On-Demand Fulfillment: On-demand fulfillment is a flexible, agile solution that connects retailers to warehouses/fulfillment centers to work together on the basis of need. It allows sellers to only pay for the space and services required for their current operation, making it easy to scale up or down quickly. There are three advantages of on-demand fulfillment. First, sellers can match consumer expectations while still delivering a branded experience. Second, sellers save on warehouse costs. And finally, there are no contracts, so sellers do not have to make long-term upfront investments in a fulfillment partner.
Outsourced Fulfillment: Outsourced fulfillment is a more long term solution, typically for established companies that have a good grasp on their projected business needs. When you outsource your fulfillment, you’re essentially hiring a partner company to manage the post-purchase customer experience. It requires placing trust in another organization, so it’s wise to choose the right e-fulfillment partner.
There are many different reasons to consider a 3PL to supplement or entirely outsource your eCommerce fulfillment, but choosing the right fulfillment partner can be difficult. Some focus on direct to consumer shipping only, while others focus on business to business only. Some focus on business to consumer but have strict requirements on SKU count and/or SKU velocity. In other cases, you may partner with a growing 3PL that is eager to earn your business, but because they don’t specialize in your product or business model, the experience will be terrible.
Make sure you choose an ecommerce fulfillment partner that is flexible, scalable and able to offer reliable support in the event of unexpected situations. Your partner should not only be able to handle the post-purchase process for you but also improve that process so you’re getting the most out of your spend. After all, these companies specialize in shipping everything out on time every day.
Start with finding a reputable, well-reviewed fulfillment company that can meet your current needs, preferably one that also serves larger businesses so you know they’re capable of higher volumes. Look for growth potential and a wide shipping carrier network. You’ll need a multicarrier strategy to meet today’s ecommerce demand, and you don’t want to be limited by your 3PL. Most importantly, never settle for a fulfillment partner that doesn’t meet all your needs. There are plenty of fulfillment partners that can help you achieve your goals. It’s simply a matter of getting connected with the right 3PL partner for your business.
It’s easy to become frustrated contacting various 3PL’s and not getting a clear response to all your questions, or they outright state you don’t have enough volume or too many SKUs. Parcel Consulting understands the difference between each provider and can help connect you with 3PL’s that fit your model and want your business. That’s why we’ve created a fulfillment consulting division within our company that specializes in all available options for companies that need better 3PL and ecommerce fulfillment solutions.
Parcel Consulting has aggregated and partnered with the best options for same-day, next-day local delivery in the United States and Canada. We work with businesses of all types and sizes to provide the best tailored local delivery options and technology for their needs.
We’ve been preparing for this for more than a decade and we’re here to help! Give us a ring to discuss your options at: 833-PARCEL-1 (833-727-2351).
