If you’re considering outsourcing order fulfillment to a third-party logistics partner, don’t underestimate the importance of location. An ideal distribution network needs to be able to reach your key markets cost-efficiently. Then, it can produce the quick deliveries that will maximize your service levels.
Why is outsourcing order fulfillment important?
Without strategically placed facilities, shippers risk running longer transit times and providing slower service that will result in unhappy customers down the line. Therefore, many shippers are adopting a bicoastal distribution strategy. A bicoastal network will help you close the gaps between your products and end customers while increasing costs savings.
However, many companies can’t afford to build their own facilities from coast to coast. A third-party logistics providers with an established bicoastal distribution strategy in place can provide many benefits to companies outsourcing order fulfillment.
Increase speed to market
Getting your product to market as fast as possible is crucial for the success of any shipper. If your competition is constantly providing better delivery times, your brand perception will decrease. To overcome geographical barriers and gain an edge over your competition, consider the advantages of distributing your products from points closer to their end destination.
With bicoastal distribution centers, you can quickly service customers on either side of the country. Additionally, you’ll increase customer satisfaction by meeting delivery expectations. Lastly, when you’re competing against industry giants like Amazon, the ability to cover more ground is always a plus.
Reduce shipping costs
The added costs that come with longer transits are another reason you should look into bicoastal distribution. It’s important to work with a logistics partner that has fulfillment warehouses conveniently located near your buyer. Otherwise, you’re facing the reality of crossing multiple zones, incurring higher shipping costs, and disappointing leaving customers waiting.
Mitigate potential risks
Whether it’s an unexpected natural disaster or national emergency, no business is completely safe from risk. Therefore, having a backup plan can be crucial for long-term survival. Planning for the unplanned is where having facilities on both coasts can especially come in handy.
By using a decentralized, multi-facility strategy in comparison to a single, centralized facility, shippers can mitigate their chances of experiencing huge delays or being forced to shut down altogether. Logistically it makes more sense to split your inventory across multiple locations. However, if you need further proof, just take a look at what’s currently happening with COVID-19.
Improve the returns process
Returns typically involve overcomplicated processes that take too much time and effort if they’re not properly streamlined. Bicoastal distribution centers help simplify returns and exchanges because of their ideal placement. Therefore, shippers can respond more quickly to customers with actionable solutions.
At the end of the day, logistics partners that offer bicoastal distribution centers can give any shipper the speed and service they need to operate at maximum efficiency, cut out the waste, and keep their customers happy.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, our services include omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
We have over 2 million square feet which are all state-of-the-art facilities, offer dray services to support the warehouses, and handle distribution to retailers and wholesalers.
Our main drive is to simplify your supply chain by delivering exceptional service and optimizing your operational performance. We aim to build, protect and foster strong business partnerships.
O’Neill’s reliable 3PL platform, combining sophisticated technology with robust, flexible processing designs and speed-to-market gateway models, was built by our management team of seasoned executives with backgrounds in transportation, distribution and technology across domestic and international supply chains.