Pick-And-Pack services offer businesses a cost-effective and efficient way to fulfill and distribute orders compared to doing it all in-house. Whether you run an e-commerce business or a manufacturing company, outsourcing your fulfillment needs to a third-party provider can improve all aspects of your operations. When working with a professional distributor, you can cut down on delivery times, reduce shipping costs, and lower the risk of having extra or insufficient inventory. In-house fulfillment can help with maintaining control over your operations, but it requires a significant investment of time and resources. In this blog, we will discuss the main differences between using pick-and-pack services versus in-house fulfillment and how they can impact your business.

What Is Pick-and-Pack Fulfillment?

Pick-and-pack fulfillment is a process in which a third-party provider receives orders from your business, picks the necessary items from their inventory, packs and labels them for shipping, and finally sends them out to the customer. All of your company’s inventory is stored in the , providers house and they manage all parts of fulfillment, including inventory management, order processing, and Shipping logistics.

What Are the Downsides of Distributing In-House?

Although many businesses prefer the idea of handling all of their operations, this can be challenging and time-consuming. In-house fulfillment requires a lot of resources, including space for inventory storage, employees dedicated to manage and fulfill orders, and equipment for packaging and shipping. This can also require a lot of overhead costs, such as labor, rent, utilities, and transportation. Additionally, with in-house fulfillment, there is a higher risk of overstocking or understocking inventory, which can result in lost revenue and dissatisfied customers.

Why Choose 3PL Over In-House Fulfillment?

When considering third-party logistics (3PL) for your distribution needs, there are many benefits to consider.

Reduce Overhead Costs

As mentioned above, in-house fulfillment requires a significant amount of resources and overhead costs. By outsourcing fulfillment to a third party, you can eliminate these costs and use your budget for other aspects of your business.

Keep Inventory Managed, Tracked, & Updated

Inventory management can be difficult when focusing on many other aspects of your business. With pick-and-pack fulfillment services, 3PL providers can help manage and track inventory levels, ensuring that you have the right amount of stock at all times. This can also include real-time updates on inventory levels and alerts when stock is running low.

Decrease Delivery Times

Lowering the amount of time it takes for your shipments to reach partners or customers can not only save you money, but also boosts your reputation. When you keep your recipients waiting from delays, it can damage your relationships and reputation in the long run. Pick-and-pack fulfillment services can help streamline the processes involved in packaging and shipping, resulting in faster delivery times and return customers. Additionally, 3PL providers often have multiple distribution centers strategically located to reduce transit times and costs.