Hidden costs of In-House Order Fulfillment

costs of order fulfillment

When you manage your fulfillment and warehousing in-house, you may have faced many obstacles and challenges throughout. Warehousing and inventory management is not so easy process as it seems to be. It needs proper management, planning, and execution otherwise it can costs you a big amount especially if you are a startup company. Although partnering with a trusted logistics provider just like Tenaxx Logistics for third party fulfillment service may seem a little expensive up front, you will ultimately save more money in the long run as your business grows.

Here are some of the hidden costs in warehousing and in storing inventory which can help you weigh the cost benefits of using a fulfillment company.

Is your warehouse and inventory management up-to-date?

You should always keep your warehouse and inventory up-to-date, as it makes a big difference in your business. When a customer places an order, the first important task is to fulfill the order and accurately manage your inventory count. All the inventory record should be up-to-date for running a business successfully.

Do you require more employees?

You may need more employees to oversee your warehouse management and customer service when you are busy focusing on new market strategy and sales. The cost of employing new people for handling warehousing operations can add up, as there are additional expenses to their salary. Moreover, you have to provide them training so that they work to your expectations.

What about security issues?

One of the main responsibility which comes to you when you handle your own warehouse and inventory is the security of your goods. Without security, your inventory could be damaged or stolen, costing you hundreds or thousands of dollars. You should also check the type of inventory you are keeping and whether it needs some specific climate environment to remain in the right condition.

Do you have enough space for your goods?

If you are trying to store all your goods in your warehouse space or at home, the cost and inconvenience will be high. For setting up a big space, you have to spend a large amount of money so that you can store the products in a manner where it can be easily organized and accessible.

Do you have enough warehousing experience?

You are in full charge of your schedule and workload when you run your own business and most importantly all the success goes straight to you. However, if you do not understand your workflow and requirements, you may find the work more complicated than you think. Outsourcing your order fulfillment to a company that fully understands the process and can provide you with cost benefits and will allow you to focus on other important areas of your business.

Hire Tenaxx Logistics for third party fulfillment services!

If you’re looking for 3PL service, look no further than Tenaxx Logistics. We have the space, services, modern equipment, and commitment to customer satisfaction. To know more about our 3PL services, contact us today.