Outsourcing your packaging and fulfilment has many benefits. One of the top benefits is that it can save your business lots of money. This is for many different reasons including the cost of staff, efficiency, and business focuses. This article depicts how and why outsourcing your packaging and fulfilment saves you money.
- Staffing costs are lower
- Fast and efficient
- Enhanced customer service
- Stock control is more efficient
- Seasonal options are available
- You can focus on selling
- You can save money on rent
- Transportation costs are lower
- Time = money
The first, and probably the most obvious statement to make is that outsourcing your packaging and fulfilment massively reduces your staffing cost. Wages are one of the biggest costs for any company. For example, the average salary for a fulfilment manager is £30k and then you would need to pay national insurance etc. Plus you need multiple staff to keep everything in order. By outsourcing your packaging and fulfilment you can reduce this cost massively.
Fast and efficient
Due to the fact that packaging and fulfilment companies are experts at what they do, they are really fast and really efficient, which ultimately saves you money. The technology and practices we adopt means that your deliveries are sent out much more quickly and efficiently than your average in-house fulfilment operations.
Enhanced customer service
The scanning technology used at Complete Packaging means that we always know where your packages are. This ultimately enhances customer service and saves you money in the long run. Understanding where your packages are reduces the room for error and means you will have less complaints to deal with. If your customers are satisfied, so are your pockets. This also means you are more likely to have repeat customers. And, did you know that a new customer can cost 5 times more than a repeat/existing customer?
The advanced and accurate technology used to track your goods and orders also saves you money because it means you can accurately control your stock. There’s no need to over or under order because you will also have an accurate and immediate understanding of how much stock is available to you. Often, businesses waste money on ordering too much stock or having to spend more money of quickly creating stock when there’s a run on orders. Keeping up to date can minimise this.
Seasonal options available
Another reason that outsourcing your packaging and fulfilment can save you money is your seasonal options. If, for example, your product is usually bought during the summer only but the winter months are quiet, you can look into only outsourcing during the busy times so that you can keep everything else running smoothly. When things quieten down, you can do the work yourself again should you wish. Or, perhaps you want to consistently outsource because otherwise you would need to hire (potentially very expensive) temporary staff at short notice when things get busy. Hiring temporary staff can be expensive because you have to spend time training them and often the cost is higher than a salary. So, there are multiple seasonal advantages to outsourcing your packaging and fulfilment services and it could save you a lot of money.
Focus on selling
Sometimes, when you’re just trying to get all your orders out on time, it can mean that other areas of your business aren’t getting as much attention. You still need to market and sell your products even during busy periods. Giving somebody else the task of getting your goods from A to B means that you have much more time to focus on expanding your business, and turning over more profit, which makes you more money (even better than saving money!).
Save money on rent
If your business is expanding, you might need a bigger area to store your stock and this can be very expensive on your own. Packaging and fulfilment companies have huge bulk storage facilities where you can store your stock at a fraction of the price as hiring your own storage facility. Other than staff, rent is one of the biggest costs for any business and any way that this can be reduced is beneficial to you and your company and is one of the main reasons that outsourcing packaging and fulfilment can save you money.
Another huge cost is transportation. Hiring couriers and shipping costs can be huge but due to the number of orders that we send out our prices are much lower. If you think about, buying in bulk is much cheaper and it’s the same for delivery costs! If you’re sending one item, it will cost a lot more per item than sending 100. In fact, did you know that you can save around 15% to 35% off shipping rates when going through a fulfilment company?
Time = money
Many of the ways that outsourcing your packaging and fulfilment saves you money are related to time. Being able to focus on selling and improving your customer service so reducing complaints are all ways that you can save time. Without trying to be cliché: time is money. So, by saving time you are also saving money. It’s worth thinking about whether or not outsourcing your packaging and fulfilment is worth simply just because of the time element. Running a business can be stressful and there’s a lot of things to think about all the time.
Complete Packaging are here to help run your business more smoothly and save you time and money on your packaging and fulfilment costs. We have a team of experts with decades of experience in the industry so if you’ve been reading this article thinking that you might want to benefit from one of these advantages, get in touch.