Fulfillment Outsourcing Impacts Costs, Efficiency, & Flexibility

Following is an excerpt from an interview about fulfillment outsourcing with Saddle Creek’s Perry Belcastro which appeared in “Targeting Fulfillment,” a special report in the June issue of Internet Retailer.

E-retailers are almost always more passionate about developing and marketing their product than they are about storing it, picking it off the shelf, boxing it and shipping it. That’s where third-party logistics companies, or 3PLs, can create efficiencies . . .

Fulfillment Outsourcing Specialists Give Retailers a Break on Their Fulfillment Duties

With Saddle Creek’s warehouse network, the company says products can be delivered virtually anywhere in the United States in two days or less via ground service.

“Being closer to the consumer allows us to use lower-cost shipping methods and still meet customers’ expectations for efficient delivery times,” says Perry Belcastro, Saddle Creek’s vice president of fulfillment services.

Some of Saddle Creek’s locations consist of a single building while others are a campus, with each building storing the goods of multiple Saddle Creek clients. Saddle Creek’s retailer clients often can save money by sharing the warehouse space with other companies instead of renting or buying enough space to store their goods themselves, Belcastro says.

Saddle Creek also employs and manages warehouse employees, taking on a human resources function that can be difficult, especially during peak season. “One of the biggest costs of running a business is labor, and if we can handle the HR aspect of the seasonal spikes that many retailers experience, that creates efficiency for them,” Belcastro says.

Read the full article beginning on page 11 to learn more.

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