8 Reasons Why You Need to Outsource Your Logistics

8 Reasons Why You Need to Outsource Your Logistics

Cathy Carpetta

Cathy Carpetta

May 16, 2024

Surging demand is a fantastic problem to have, but it can quickly expose the limitations of in-house fulfilment

Instead of letting logistics slow your growth, consider a strategic move: logistics outsourcing order fulfilment

By partnering with a third-party logistics (3PL) provider, you can scale effortlessly, optimise costs, offer international delivery, and propel your brand to the next level. 

Let's explore the key reasons why outsourcing order fulfilment might be the secret weapon your business needs.

1. If you want to scale your brand 

Imagine your marketing campaign crushes it, and orders flood in. But with in-house fulfilment, you're stuck scrambling for staff, space, and time. 

Outsourcing logistics eliminates that headache. A 3PL partner (fulfilment company) has the flexibility you need to scale operations to meet your demand. 

You focus on selling more while they handle the logistics operations.

2. If you want to reduce your upfront costs 

57% of companies that have outsourced their logistics to a 3PL have experienced cost savings as a result, according to a DHL report. 

Warehouse rent, packing supplies, logistics equipment—these costs eat into your profits. Outsourcing eliminates those upfront costs. 

This frees up capital for important things – like marketing that actually works, a new product development, opening sales channels or expanding to a new market.

3. If you need faster delivery to boost your sales

The average customer now expects same day or 48h delivery as a standard.

Slow shipping can lead to frustration and bad reviews. 

Fulfilment companies are experts in logistics. They have refined their picking and packing processes to minimise delays and allow your products to be shipped quickly! 

Additionally, many 3PLs have strategically located and specialised warehouses so you can ensure even faster shipping worldwide! 

Bigblue Tips

Say goodbye to 2-week waits! Bigblue delivers significantly faster, getting your products into your customers' hands quicker for a more satisfying unboxing experience. 

With a 92% buyer satisfaction rating for delivery and our extensive fulfilment centres network in Europe, your products can seamlessly reach customers worldwide. 

Discover our delivery experience

4. If you want to have discount shipping rates 

Fulfilment company providers leverage bulk volume to negotiate lower shipping rates with major carriers. 

These savings get passed on to you. Competitive shipping options make your products more attractive, which means more sales and a bigger market share. 

Bigblue Tips

At Bigblue, we leverage our close partnerships with over 20 European carriers to get you the most competitive rates for your needs! 
As one of our carriers' major clients, we leverage our strong relationship to expedite customer requests and escalate issues faster.

Discover our carriers’ network 

5. If you want to improve your stock management 

Many 3PLs offer real-time inventory visibility across their warehouses, thanks to the advanced Warehouse Management System (WMS). 

This allows you to optimise inventory levels by identifying best-selling products, reduce the risk of stockouts, and free up capital tied up in excess stock. 

You gain greater control over your inventory without the need for manual tracking.

Bigblue Tips

Bigblue’s cloud-based Atlas WMS is a game-changer for e-commerce and omnichannel brands.

You have real-time inventory visibility, and we optimise your storage space and manage product locations. You only have to connect to our app and look at your personalised dashboard!
👉 Discover our WMS

Bigblue's dashboard

6. If you want to expand internationally 

Expanding globally is exciting but challenging. 

Partnering with a 3PL provider simplifies the process. They handle customs, manage VAT and duties, and ensure compliance, reducing delays. 

Local expertise helps navigate market preferences and logistics challenges. 

Leveraging their scale, 3PLs offer cost efficiencies, lowering international shipping costs and making your products more competitive globally!

"Bigblue enabled us to expand into new markets and ensure efficient delivery throughout Europe" says Christelle and Lucas, SmartWorkout founders

7. If you are tired of dealing with daily delivery issues 

96% of customers track their packages online after purchase, with 43% checking the status daily.

From order tracking to managing delayed packages, delivery issues can constantly drain your resources.

Outsourcing logistics takes that burden off your shoulders.

A 3PL partner handles order fulfilment troubleshooting and can help you answer customer inquiries. This gives you peace of mind, allowing you to focus on strategic initiatives.

Bigblue Tips

Bigblue offers various delivery options with real-time tracking and estimated arrival dates at checkout. 

Pair this with branded post-purchase emails with a 74% open rate that can divide your Where Is My Order? (WISMO) requests by 2! 

Discover our tracking experience 

8. If you don’t want to manage your own fulfilment team  

Building and managing a skilled in-house fulfilment team requires significant time and resources. 

Recruitment, training, scheduling – it all adds up. Outsourcing eliminates this responsibility. 

A 3PL has a team of experienced professionals dedicated to efficient order fulfilment, picking, packing and shipping, inventory management, and returns processing. 

You gain access to their expertise without the burden of managing in-house staff.

Outsourcing fulfilment can be a strategic move to reduce costs, free up resources for growth, and create a phenomenal customer experience. 

Remember, a successful fulfilment strategy should scale with your business and support your long-term goals. 

If you're feeling overwhelmed by in-house logistics, consider outsourced order fulfilment. It might just be the secret weapon that unlocks your brand's true potential.

If you think outsourcing logistics could be a game-changer for your brand, you can meet with our team of experts to discuss your needs

Frequently asked questions
Everything you need to know.
What are the main benefits of logistics outsourcing?

Logistics outsourcing allows businesses to leverage the expertise and resources of a third-party logistics provider (3PL). This can lead to cost savings, improved efficiency, and increased scalability.

Why is outsourcing logistics good?

Outsourcing logistics frees up internal resources for companies to focus on core competencies. Additionally, 3PLs offer access to advanced technology and economies of scale, improving efficiency and reducing costs.

What is outsourcing logistics called?

Outsourcing logistics is often referred to as Third-Party Logistics (3PL) or contract logistics.

Why do businesses outsource delivery?

Companies outsource delivery to leverage the expertise and infrastructure of 3PLs. This allows them to achieve faster delivery times, wider coverage, and potentially lower costs compared to managing deliveries in-house.

What are the issues in outsourcing logistics?

Some potential challenges of logistics outsourcing include a loss of control, dependence on the 3PL, and potential communication issues. Careful selection and contract negotiation can mitigate these risks.

What is meant by outsourcing in the supply chain?

Supply chain outsourcing refers to the practice of contracting with a third-party company to handle specific logistics functions, such as warehousing, transportation, or fulfilment.

What is 3PL shipping?

3PL shipping refers to using a third-party logistics provider to handle the shipping and fulfilment aspects of your supply chain.  3PLs can manage warehousing, transportation, packaging, and customer deliveries.