Blog Posts Whitepaper: How 3PLs Can Help to Fine-Tune Subscription Box Fulfillment
With an estimated 7,000 subscription companies vying for the attention of consumers around the globe, the subscription box market is growing increasingly competitive. Today’s subscription-based businesses need to employ every possible resource to make their box stand out from the crowd.
Many subscription companies are turning to third-party fulfillment providers to provide a better experience for subscribers. With help from a 3PL, they are better able to flex to meet demand, offer personalized box options, minimize shipping costs and more.
A new whitepaper from Saddle Creek Logistics Services explores the competitive advantages of outsourcing subscription fulfillment operations. Outsourcing to Optimize Subscription Box Fulfillment breaks down the biggest benefits of outsourcing, provides tips for finding a provider and offers a firsthand look at a fulfillment operation in action. Following is an excerpt…
5 Reasons to Outsource Subscription Fulfillment
The boom in subscription box sales has caused many companies to experience explosive growth — practically overnight. Storing and receiving the influx of products can quickly become a challenge. And with little historical sales data, predicting demand from month to month can be difficult, so it is hard to gauge how much space will be needed. A fulfillment provider with flexible resources can scale space to accommodate both growth and fluctuations.
Subscription companies typically have periods of intense volume due to their monthly (or quarterly) delivery cycle. Adjusting labor and space to suit these dramatic peaks and valleys can be very challenging. Paying for space and staffing to accommodate the highest volume each month when operations are only at capacity for one week can be very expensive. Fulfillment providers can balance the variations because they work with multiple customers.
A personalized experience is a top priority. In fact, it is the most important reason for subscribing, 28 percent of curated box subscribers say. As a result, many companies allow customers to pick and choose the contents of their subscription to suit their personal tastes. While curated boxes are popular, they are very labor-intensive, requiring significant product customization within a tight timeframe.
Effective third-parties have the staffing and processes to handle a variety of configurations based on client profiles, wants, interests, etc. This can be particularly helpful as order volume grows.
For more advantages of outsourcing, read the whitepaper.