It’s no secret that e-commerce has transformed the fashion landscape over the past decade. Allowing smaller brands, that would previously have been restricted to selling in their local markets, to reach a much wider audience. However, scaling your fulfilment operation after your initial sales successes in preparation for further growth can be challenging, especially when your existing logistics set-up is already struggling.
Therefore, knowing when to outsource your fulfilment operations and your supply chain management to a third-party logistics (3PL) provider, can be critical for achieving your growth ambitions. Read on to find out if your brand can benefit from a strong and enabling 3PL partner.
When is the right time to outsource your fashion logistics?
Most emerging brands look after their fulfilment themselves during the startup phase of their company. And although this at first is the most cost-effective option, it can also prove to be more expensive and growth preventing when success compels them to scale up.
In fact, partnering with a specialist 3PL provider at the right moment is often less expensive and far less demanding than investing in your own warehouse, equipment, staff and expertise. Some 3PLs even offer a scalable, pay-as-you-grow solution, giving you access to professional infrastructure and solutions removing the need for a company to heavily invest. But how do you know if your company is ready? Here are some key signs that it’s time to look for a logistics partner:
1. You’ve outgrown your current storage space
One of the most common obstacles faced by fast-growing brands is insufficient storage space. Having enough warehouse space is key to avoiding stock shortages and ensuring prompt fulfilment to all your customers. Managing inventory in cramped conditions can affect efficiency, increasing the risk of errors and cause delays in order fulfilment. By partnering with a fashion logistics provider offering you flexibility in warehousing space, you are guaranteed of always having have the needed storage and processing capacity.
2. Shipping costs are eating into your margins
Shipping a smaller number of products, especially internationally, can be very expensive for smaller brands. That is why this is also a key reason why many fast-growing brands choose to outsource their logistics. In general, transportation is very much volume driven with costs going down when shipping more orders. As a direct result it is therefore a given that smaller brands are hit by disproportionally high shipping costs compelling them to almost finance their own growth when they are unsuccessful or unwilling to charge their customers. An established 3PL can bring relief by leveraging its existing relationships and buying power coming from consolidated volumes of all its operations with carriers and last-mile partners. The right 3PL can therefore make fulfilment more affordable and protect your profit margins.
3. Managing your logistics is taking time away from product and business development
While efficient and professional logistics is critical to your company’s success, it shouldn’t keep you from other strategic priorities. There are a limited number of hours in a day so when you’re spending more time packing boxes than designing your next collection, it will slow down progress in realizing your growth ambitions.
A strong and enabling partnership with a 3PL, will free you from that burden and render significant efficiency gains, which in turn will free up valuable time for you to focus on your core activities again. Like designing your new game changing good received product and of course building your brand awareness.
4. You’re struggling with managing returns
Return orders are an inevitable part of fashion fulfilment operations. Managing timely processing next to your sales order volumes without a professional reverse logistics set-up can be complex.. Sorting, inspecting and refunding of returned orders is more difficult to manage without an advanced warehouse management system.
Next to that, a user-friendly online portal for your customers to submit their returns requests can also be a big help. There’s nothing more frustrating for customers than a confusing or lengthy returns process ending up in you having to make sense of incorrect, incorrect and not enabling information. So, as your brand grows and matures, outsourcing returns management to a 3PL specialized in fulfilment services in fashion can help ensure you deliver a consistently excellent customer experience, when it comes to both Sales and Return orders.
5. You’re ready to expand into new markets
Many fashion and lifestyle brands look to new markets to accelerate their growth, but this can often feel like a daunting step. A specialized 3PL can help brands expand their reach in an efficient and unburdening way. With extensive integrations and with the right systems in place, a 3PL can make scaling globally far simpler and easier by removing the barriers that smaller brands typically face. From customs compliance to last-mile fulfilment, you’ll have all the tools you need to make your international operations a success. By partnering with a specialist like Bleckmann, you’ll be able to connect your brand to an extensive list of international online (fashion)marketplaces such as ASOS, Saks Fifth Avenue, Macy’s and many many more. In short, having to go international doesn’t have to be a roadblock in growing your brand.
Click here to learn how fashion e-commerce marketplaces can streamline your brand’s international expansion.
Streamlining growth for fashion brands
Let us conclude that with the right logistics partner, you can gain the expertise and experience, which you need to compete with larger, more established players and grow.
Probably the most illustrative example of this is the story of Ben Francis and his extremely successful sportswear brand Gymshark - the brand that has transformed into one of the world’s most recognisable and well-known sportswear brands.
Want to find out more about outsourcing your fashion and lifestyle logistics? Contact us today for a free consultation with one of our experts.
