What are Fulfillment centers and what is the Right Time to avail Fulfilment Services?


Fulfilment centers which are also known as 3pl are third party warehousing services that provide businesses with the facility to deliver orders. This is an ideal option for the organization who does not want to handle transportations or don’t have storage space for their products. There are many well-known and trusted fulfillment services providers in Singapore.

If your business is growing rapidly and you want to do all the business processes with a well-planned strategy then it is necessary to work with a fulfilment services provider that offers a central idea of your data and distributes inventory across multiple stores in a wise manner. Fulfilment centers also provide you with more flexibility to increase or decrease the storage space according to your demands.

Organizations transfer their goods to the fulfilment centers, and they will be responsible for delivering it to the customers. The stock delivered to the fulfilment centers is stored strategically in preparation for the completion of the order. When the organization receives an order, the fulfilment center is informed and they check the warehouse for the package and ship it at the destination address.

Right Time to Use Fulfilment centers:

Organizations in Singapore start fulfilling their orders at the beginning but as their business grows they look for a 3rd party logistics or contract logistics provider (3pl companies) to help them in their supply chain management. It becomes difficult for the business owners to decide the right time to outsource their logistics to fulfilment centers. Fulfilment centers are beneficial for every business and you have a great opportunity if you are in Singapore because you will find specialized services providers both in small and large operations. Below are some conditions that indicate that it’s the right time to outsource logistics to fulfilment centers. 

●     You are unable to handle increasing orders

●     Fluctuation in orders

●     You have no time to focus on other aspects of business

●     Lack of Infrastructure

●     When your expenses are increasing

●     In this Covid-19 pandemic

Unable to Handle Increasing Orders:

Increase in orders is great news for every business as it is the main aim of any business, but this fact can also become a failure for the business if it cannot keep up with the growing amount of orders. It will also degrade the brand reputation and will provide customers with a poor experience. If your organization is facing such a type of problem then it is the best time to get help from fulfilment services providers.

Fluctuation in Orders:

If you are running a business whose sales increase and decrease throughout the year then it is not a good idea to pay rent for the whole warehouse. There are some businesses that work at the season base and they also have to pay for the whole year in order to store their products. If this is the problem you are facing then it is best to have fulfilment services as they will provide you with the facility to fluctuate the storage space according to the number of your orders and will only charge for the space you use. 

No Time to Focus on Business:

If most of your time is wasted in packing, managing and shipping your products and you don’t have the time to focus on the other major parts of your business, it is the right time to partner with a fulfilment services provider. If transporting or shipping products is not the main part of your business then there are chances that you may take your business to failure by not giving attention to your core competencies.

Lack of Infrastructure:

If your business is growing and it is reaching the international markets then you should definitely use the fulfilments centers. Transporting goods outside the countries presents a lot of logistics challenges, you have to deal with the rules and regulations of the different countries which is a time-consuming task. By partnering with the fulfilment services provider you will have the ability to grow your network in all major international markets. They have connections in different markets which will help you to grow your business and also improve your infrastructure. It will provide your customers with a better and satisfactory experience and will build trust in your brand.

Growing Expenses:

The main goal of every business owner is to gain profit and you should always find ways to reduce the costs as much as possible. If your demands are growing then they will also increase your costs as you will have to hire extra staff for packing, delivering and managing your goods. Fulfilment centers will provide you with the best solutions to save money. They have connections and ways to deliver the goods in a quick manner with a low cost. You will also have to spend less on storage cost and will not have to hire more labour.

COVID-19 Pandemic:

This is the best time to switch your business to outsourced fulfilment centers. Every business is facing difficulties in almost all its aspects. People are stuck at home and now they have to order everything from the manufacturers. It is the best time because fulfilment centers will help you to continue your business even in hard circumstances. It is also the right time because online demands have been increased to many folds. If your business is shut down, fulfilment centers will take care of your products and they will be accountable to you in case of any damage.

Final Words:

It can be said that if it is becoming difficult for you to manage operations and plan the business process then you should use 3pl companies in singapore. Half of your burden will be taken off from you and you will be able to build strategies more effectively. If you still have any confusion about the fulfilment centers then keep this thing in mind that a recent survey shows that the companies which are working with fulfilment centers are growing at a higher rate as compared to the other companies. 

click here for more articles.