Shipping logistics is a key factor in customer satisfaction within ecommerce, but not all businesses have the capacity to provide this service efficiently and profitably. A great solution is Fulfilment for SMEs, which covers every activity from the moment an order is received until it is delivered to the customer.
Partnering with a logistics provider that takes care of the entire process can be the best decision for your business. This third party is responsible for receiving, organising and storing your products at their facilities, including inventory management, packaging, delivery and even returns handling.
The tipping point: 3 signs that in-house logistics is holding your business back
When should you consider outsourcing Fulfilment services for SMEs? The answer depends on many factors. Not every ecommerce business needs to outsource its logistics, but there are clear signs that internal management is no longer sustainable:
- If your team spends more time managing shipments, coordinating carriers or resolving incidents than selling your products, logistics is consuming more resources than it should.
- When your business exceeds one hundred orders per month and order preparation becomes slow, creates bottlenecks, and leads to more errors and delays, outsourcing becomes an operational necessity.
- If your business lacks the capacity to handle seasonal peaks such as Black Friday, Christmas or sales periods, when order volumes multiply, Fulfilment services for SMEs become the ideal solution.
These signs indicate that you may need to hire additional staff, expand your warehouse space or coordinate multiple transport providers under significant pressure. They are clear indicators that your business needs to outsource its logistics operations.
The Fulfilment calculator: breaking down the real cost per order
When considering a Fulfilment service, it is essential to weigh the cost of external logistics against that of managing logistics in-house. To do so, you will need to gather the necessary data to calculate the actual cost per order:
- Storage costs: include rent, maintenance and inventory management expenses.
- Picking and packing costs: take labour and packaging materials into account.
- Shipping and distribution costs: consider transport rates, insurance expenses and any additional services.
- Returns management costs: estimate these based on your company's historical return rate.
- Technology costs: calculate the investment required in technologies that improve the efficiency and quality of your logistics service.
Understanding both the individual and total costs will help you determine the true impact of logistics on your business and decide whether it is more cost-effective to manage it internally or outsource it to a specialised provider.
In-house vs outsourced logistics: a comparison table of risks and benefits
Profitability is a key factor when choosing Fulfilment services for SMEs, but this decision should not be taken lightly. Understanding and comparing the risks and benefits of both in-house and outsourced logistics will help you make the right decision for your business.
Internal Logistics
Risks:
Requires significant investment
Warehouse space is needed
Qualified personnel is required
Benefits:
Process control
Cost control
Flexibility and agility
External Logistics
Risks:
Loss of control over logistics flows
Possible damage to brand image if customer satisfaction is not achieved
Shipment customization is more complex
Benefits:
Reduces required investment
Offers flexibility and scalability
Reduces operating costs
Provides access to professional services
Offers access to economies of scale
Helps meet temporary needs
Supports business growth
How to scale during demand peaks without increasing fixed costs
Scaling your ecommerce business means being able to handle higher order volumes while maintaining quality standards, improving delivery times and optimising resources. Having the right logistics infrastructure in place is essential to adapt to these changes and support business growth.
A Fulfilment solution for SMEs adapts to your workflows and demand peaks, your personalisation requirements and your ecommerce system, ensuring efficiency at every stage of the process.
Transition guide: steps to outsource without losing control of your inventory
To outsource your logistics operations without losing control over your inventory, focus on the following key aspects:
- Choose a logistics partner that allows you to integrate its technology into your operations, enabling you to manage stock, monitor orders and track incidents.
- Look for a provider that offers a high level of customisation in the order preparation process.
- Select a Fulfilment solution that provides ongoing support and personalised assistance to ensure smooth operations and maintain customer satisfaction.
- Trust a logistics partner that offers genuine scalability, with the ability to absorb significant demand peaks whenever required.
At GLS, our Fulfilment solutions for SMEs are designed around the specific needs of each customer. Thanks to our extensive experience, we provide the high-quality service that your ecommerce business needs to continue growing.