Self Fulfillment For DTC Brands
In recent years, there has been a significant shift in the way consumers shop, with more people turning to online shopping and Direct-to-Consumer (DTC) brands. With this shift, businesses have also adapted to the changing landscape by implementing different order fulfillment strategies. While outsourcing fulfillment to a third-party logistics provider (3PL) was once the norm, more and more businesses are now turning to in-house fulfillment. In this article, we'll explore the benefits of doing in-house fulfillment for a DTC brand and explain statistics that back up the pros of fulfilling your own orders. We'll also look at how Luminous, an inventory management software, can help brands that do their own fulfillment.
What is In-House Fulfillment?
First, let's define what we mean by in-house fulfillment. In-house fulfillment means that the DTC brand manages its own order fulfillment process, from receiving orders, picking and packing products, to shipping them out to customers. This is in contrast to outsourcing fulfillment to a third-party logistics provider, where the provider manages the entire fulfillment process on behalf of the brand.
Benefits
One of the most significant benefits of in-house fulfillment is greater control and flexibility over the entire fulfillment process. When a DTC brand manages its own fulfillment process, it has greater control over the quality of the fulfillment process, ensuring that it meets the brand's standards. The brand can also make changes to the fulfillment process quickly and easily, without needing to go through a third-party logistics provider.
In addition to greater control and flexibility, in-house fulfillment can also lead to cost savings for DTC brands. By managing their own fulfillment process, brands can eliminate the middleman and avoid paying fees to a third-party logistics provider. This can result in significant cost savings in the long run, especially for brands with high order volumes.
A study by DHL found that in-house fulfillment can lead to cost savings of up to 25% compared to outsourcing to a third-party logistics provider. The study also found that in-house fulfillment can lead to faster order processing times, with orders being fulfilled up to 50% faster compared to outsourcing.
Another benefit of in-house fulfillment is greater transparency and visibility over the entire fulfillment process. With in-house fulfillment, DTC brands have full visibility over their inventory levels, order processing times, and shipping times. This level of transparency can help brands identify bottlenecks in the fulfillment process and make improvements to streamline the process.
Perks of Luminous
Implementing in-house fulfillment can seem like a daunting task for many DTC brands. However, with the right tools and resources, it can be a smooth and seamless process. This is where inventory management software like Luminous comes in. Luminous offers a hands-on implementation where our team aids you in the setting up of warehouse operations. The software then perpetually keeps track of inventory, locations, and so much more to keep your operations running smoothly.
