If you are contemplating whether your business should remain inhouse or try outsourcing, Lesters Logistics can help you make an informed decision. In this blog, we will explore both fulfilment options and help you determine which method is best suited to your company.
What is Outsourcing Fulfilment?
Outsourcing fulfilment means a company hires a third party logistics provider (3PL) to handle all aspects of the fulfilment process, including receiving stocks, pick and pack orders, and shipping them directly to customers.
Why Businesses Choose Outsourcing Fulfilment
Outsourcing fulfilment can be beneficial for businesses who are looking to scale quickly, as it eliminates the need to invest in warehouse space, staffing and equipment. Many 3PL provides (like Lesters) also offer additional services like tracking stock, real-time analytics to help you manage your business operations more efficiently.
What is Inhouse Fulfilment?
Inhouse fulfilment means everything is managed within your business. Every customer order is processed, picked, packed, and shipped directly from your facility handled by your team. It can be a good choice for businesses that have the space, resources and skill to handle inhouse fulfilment.
Why Businesses Choose Inhouse Fulfilment
As mentioned above, businesses have full control over stock, the quality of packaging and shipping times. It’s perfect for small businesses that need to closely manage their operations and customer experience. Some businesses choose inhouse fulfilment as it adds a personal touch when managing fulfilment themselves.
What Are the Main Differences Between Outsourcing Fulfilment and Inhouse Fulfilment?
- Control: With inhouse fulfilment, you have full control over your stock and processes. Outsourcing, on the other hand, means trusting a third party provider with your operations. If you partner with Lesters, we will make sure that your operations will run effectively and efficiently.
- Cost: Inhouse fulfilment requires significant upfront investment in warehousing, staffing, and equipment, whereas outsourcing allows you to avoid these costs and pay a monthly fee to the 3PL provider.
- Scalability: Outsourcing fulfilment allows for greater flexibility as your business grows. 3PL providers have the resources to scale with you, whereas inhouse fulfilment can become challenging to scale quickly, as it requires more staff and space.
- Knowledge: With outsourcing, you benefit from the experience of a 3PL provider, which may have advanced fulfilment technology and operational efficiencies. Inhouse fulfilment requires you to build and manage everything internally.
Which one is most suited for Your Business?
Outsourcing is usually the best choice for small to medium sized businesses that want to scale quickly without the capital investment in warehousing and staff. It’s a great option for companies looking to focus on their operations.
Inhouse fulfilment might be a better option if you want to maintain a close connection with your customers and offer a tailored service. However, it also comes with the challenges of warehouse management and processes.
What is the Main Difference Between Fulfilment and 3PL?
The main difference is that fulfilment can be done either inhouse or outsourced. Whereas 3PL refers to the outsourcing of these services to a third party provider. A 3PL provider usually offers a wide range of services, including global shipping, freight management and stock tracking, making it a great choice for businesses looking to scale internationally or to help them manage complex logistics.
Why Partner with Lester's Logistics?
Choosing the right fulfilment strategy is very important for business growth and keeping things organised. By partnering with Lesters Logistics, you gain access to an experienced team that are dedicated to delivering reliable fulfilment services.
Our bespoke packaging solutions and third-party logistics services are designed to help you scale without compromising on quality, control, or customer experience.
With our ability to offer tailored services, real-time tracking, and eco-friendly packaging options, we’re here to support your business at every step, allowing you to focus on what matters most, growing your brand.
