Efficient Ways of Reducing Your Logistics Cost

    11 Mar by MTM Team

    Reducing logistics costs by streamlining supply chain processes is one of the major concerns of businesses everywhere. Organisations employ various methods ranging from optimising inventory levels, better utilisation of floor spaces, improving supplier/third party relationships, to decreasing freight costs by re-charting better shipping networks and creating organised operations to add to their bottom line.

    If you run an e-commerce business or are planning to start one, it is likely you have heard about warehousing, shipping, and fulfilment services in Australia. Making sales is no doubt exhilarating, but what happens after the customer has bought the product? It needs to reach them on time, right? The question is how you ensure the product lands up in the customer’s hands on time and in good condition.

    There are three ways this could happen:

    • A drop shipper fulfils the order for you
    • Your organisation handles the job of fulfilling orders itself
    • You tie up with a third-party logistics company that will handle your warehousing and fulfilment

    Fulfilling your own orders has some important benefits. If you are starting out, or your packaging needs are somewhat unique, it is better for you to take care of your own logistics. Also, businesses struggling with cash flow are advised to handle their own logistics.

    On the other hand, you may be interested in exploring third-party warehousing and fulfilment services if your business is expanding rapidly and you need more time to focus on your core competencies. There are several reputable 3PL providers in Australia that offer high quality professional packing, storage and delivery services at competitive prices thus allowing you to concentrate on the important aspects of your business.

    Top benefits of hiring a well-established 3PL company include:

    1. Avoiding long-term leases

    Many logistics companies offer a high degree of scalability.  That means as you experience fluctuating demands, a third-party logistics provider can quickly adjust to your needs. Leasing or building your own warehouse on the other hand requires a great deal of resources and commitment.

    2. Avoiding hiring your own staff

    Hiring, training and managing staff takes time and money. If your business is in the growth stage, you may be wary of promising someone a job. The best option under the circumstances would be outsource order fulfillment to a reputable logistics company which has its own warehouse staff and personnel.

    Fulfilment Services in Australia

    A fulfilment service is a third-party warehouse that prepares and ships your orders for you. Using a fulfilment service is a great option if you don’t want to hire staff for inventory management, order processing and shipping, or wish to concentrate on more important things like online marketing instead of backend logistics. It can also help you save money by leveraging the service provider’s resources and expertise for more efficient e-commerce fulfilment services in Australia.

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