Is it Time for In-House Fulfillment? 3 Signs You’re Ready to Run the Show

Apr 1, 2022 | Blog

By: Aaron Rubin, Founder & CEO at ShipHero

Getting eCommerce products from the warehouse to the customer has become more difficult than ever. With supply chain disruptions and a sudden rise in online orders, eCommerce entrepreneurs are seeking ways to optimize their delivery processes that allow for heightened visibility and better standards of control over their inventory. 

To achieve this streamlined version of shipping, some brands have brought their fulfillment operations in-house. While this can grant you more control over your products and how they’re shipped, it does come with its own costs and some degree of risk. Let’s take a look at what in-house fulfillment entails and how to know your brand is ready to meet the challenge. 

What does in-house fulfillment mean? 

In-house fulfillment means all facets of the eCommerce shipping process are handled internally, without the help of a third party. By switching your brand to an in-house fulfillment approach, you’ll be responsible for packaging, labeling and mailing products, as well as tracking the order and keeping your customers updated on its progress. 

When should you consider in-house fulfillment? 

When you’re still trying to get your business off the ground, paying a 3PL to handle your shipping can ease the financial burden associated with fulfillment, but after a while, you might see more value in having control over the process. 

Before you decide to take this step, let’s look at a few considerations you should make to guarantee in-house fulfillment success. 

Complex Products or Packaging

Most 3PLs and full service fulfillment providers have a standardized process for packaging and shipping their products. If your brand comes with complex packaging requirements, or if your products are especially fragile, managing fulfillment yourself might be a good idea. 

This way, you can rest assured that customers receive their orders intact, with the appropriate packaging that provides the intended brand experience. 

Order Volume

A relatively low order volume makes it much easier to handle some aspects of fulfillment, like inventory management, on your own. Depending on the size of your warehouse and the available bandwidth of your staff, it might not be worth paying a 3PL to take control of your shipping. 

However, if you’re looking to expand your product line or customer base, in-house fulfillment might not be sustainable. As your sales numbers increase, so will the amount of space, inventory and labor required to make a shipment. If you’re anticipating growth, paying for a full service fulfillment provider might be the best way to help your eCommerce brand scale. 

Customer Expectations 

With major retailers like Amazon setting the standard for eCommerce delivery, you’ll want to make sure your fulfillment operations can keep up with customer expectations. These days, buyers expect their package to arrive within a week or less. If you can’t fulfill these orders within that time frame, it might be time to start looking for a reliable 3PL.

However, if your warehouse is located in an urban area, close to where your customers live, quick delivery becomes much more feasible. Additionally, close proximity to your customers means you can offer other fulfillment options, like in-store or curbside pickup. 

How to manage in-house fulfillment

Before you move fulfillment in-house, it’s important to ensure that your brand is ready to take on the challenge. Even if the process seems optimal at the initial stages, changes in sales, technology and the supply chain can expose new issues that have the potential to impact your bottom line. 

3PLs and larger fulfillment service providers are able to navigate these changes by employing a well-trained staff and utilizing scalable warehouse management software. Putting together the right team and resource pool can make the process much easier.

In-house fulfillment might seem like the best way forward, but it’s important to consider a variety of risk factors before diving in. Sure, cutting out a 3PL and handling fulfillment yourself can give you more control over the process, but doing that work yourself comes with additional costs that you’ll need to be sure you can afford. 

Rent

Depending on the size of your eCommerce brand, you might need to rent additional space to store your products. Not only can renting a warehouse be expensive, but you’ll run the risk of locking yourself into a lease that could hinder your brand’s growth. 

For example, if sales continue to do well, you may eventually need even more space than your rented warehouse can accommodate. Without extra room to grow, providing consistent and reliable delivery to an expanding range of customers will be a challenge. 

Labor

Another major expense for in-house fulfillment is the cost of additional labor. If your eCommerce brand is doing well, your existing workforce might not have the bandwidth to move high-volume shipments day after day. Committing to in-house fulfillment also means you and your employees would have less time to manage other essential aspects of an eCommerce brand, such as marketing and sales. 

With a 3PL, on the other hand, additional resources can be committed to your shipments as the business begins to grow, without piling on to your team’s existing workload. 

Software 

An efficient in-house fulfillment process requires high-quality warehouse management software. In today’s eCommerce environment, simple spreadsheets and paper-based procedures just don’t cut it. 

Customers expect detailed delivery updates, which requires thorough inventory management, pricing information and an efficient warehouse. All these features of fulfillment can be handled and enhanced with the right software. 

Conclusion

While in-house fulfillment might seem like a great option right now, it’s important to remember how quickly that can change. Even positive changes like a sudden increase in sales can cause trouble for eCommerce brands that use in-house fulfillment with a finite amount of storage space and labor. 

To get the most out of your in-house fulfillment process, it’s essential to find resources that are ready to scale along with your brand. ShipHero’s warehouse management software could provide the flexible and customizable solution you need. 

If you’re looking for a partner to help your eCommerce scale to new heights, contact the Software Experts at ShipHero today.

Click HERE to Schedule a Meeting Today

Aaron Rubin, Founder & CEO

ShipHero

About the author:  Aaron Rubin is the Founder & CEO of ShipHero. He is responsible for planning and executing the overall vision and strategy of the organization. Rubin’s greatest strengths are leadership, change management, strategic planning and a passion for progression. He is known for having his finger on the pulse of ShipHero’s major initiatives, his entrepreneurial spirit, and keen business acumen. His leadership of ShipHero is grounded in providing excellent customer service that drives improved business operations. His passion for ShipHero comes from the culture and his ability to have an impact on the lives of employees, customers, partners, and investors.

Follow Aaron on Twitter & LinkedIn.

The Top 5 Things Emerging eCommerce Brands Can Do to Control Their Supply Chain Destiny

Feb 25, 2022 | Blog

By:  Maggie M. Barnett, Esq., COO at ShipHero

Over the years, plenty of brands moved their fulfillment outsourcing overseas, setting up a series of complications in the wake of COVID-19. 

While the pandemic continues to disrupt supply chains, brands are taking the opportunity to reevaluate their logistics processes and build a stronger shipping plan. By taking steps to identify pain points, leverage warehouse data, and bring outsourced fulfillment closer to home, the interrupted logistics network can become less of a daunting obstacle.

1. Identify supply chain pain points

The first step to solving supply chain woes is to identify where the pain points are. Most eCommerce brands are hitting roadblocks when importing their products into the U.S. and communicating with their fulfillment partners.

Whether it’s a lack of flexibility, an inability to meet customer demand, or outdated IT systems, it’s essential to understand specific areas of trouble in order to start making improvements. The best way to narrow down the exact issues impacting your supply chain is by leveraging warehouse data.

2. Leveraging warehouse data

To get an idea for where there’s room for improvement, brands are beefing up their data capture and analysis procedures. This elevated visibility offers a way to better understand inventory, customer demand, warehouse capacity and how these factors drive the cost of running a business. 

Without a digitally driven logistics operation, risk mitigation becomes infinitely more difficult. In such a volatile supply chain environment, improved visibility is a key initiative for emerging consumer brands aiming to optimize their fulfillment processes.

3. Mitigate supply chain risks

For years, eCommerce brands moved their fulfillment outsourcing to other countries, opening the door to an untenable amount of risk that went mostly ignored until the onset of the pandemic.

Now, brands are opting to bring their fulfillment operations back in-country, granting them more control and flexibility when shipping products to their customers’ doorstep. While this might come with a higher price tag than warehouses in another country, mitigating the risk of bottlenecks and inventory shortages is well worth it. While the fulfillment outsourcing cost might be higher in-country, the ability to get supplies and shipments reliably will help meet customer expectations and avoid expensive issues down the line.

4. Communication within the business 

For any successful business, communication is key. That’s especially true for teams juggling the uncertainties of today’s supply chain. In order to avoid bottlenecks and mis-ships, sales, devs and warehouse workers need to all be on the same page.

For brands working through multiple 3PLs, communication is especially difficult. When evaluating your shipping partnerships, it’s a good idea to find fulfillment outsourcing options that offer more efficient and holistic processes.

Communication with your customer base has also gained new importance in light of shipping complications. Being upfront about delivery times, or including a breakdown of raised prices can go a long way when building trust in your customer relationships.

5. Determine the best supply chain solution for you

No two eCommerce brands are exactly alike, and the shipping solutions that work for one business might not apply to another. There’s no cut and dry solution to today’s supply chain issues, so brands need to find creative, custom solutions that empower their customers, employees and shipping partners. 

Conclusion

Outsourcing fulfillment, especially with multiple 3PLs, can easily complicate any of the steps listed above, so it’s important to seek out reliable partnerships that can set your brand up for success in the long term. 

That’s why so many brands are turning to ShipHero for a reliable fulfillment option that offers superior data management. From emerging eCommerce stores to Fortune 500s, ShipHero helps clients grow their business with a dependable shipping partnership. 

If you’re struggling to get your Fulfillment Operations under control, contact ShipHero’s Fulfillment Experts today to talk about our fully outsourced fulfillment solution.

Click HERE to Schedule a Meeting Today

Maggie M. Barnett, Esq., COO

ShipHero

About the author:  Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter & LinkedIn.