In today’s time of soaring global inflation, the overall expense of living and business in general and the energy expense in particular is skyrocketing. As a result, everyone is forced to cut back shortly. Therefore, business people are bound to suffer more as everything in their setup depends on energy.
In this regard, the money spent on order fulfilment adds to the already substantial costs of online sales, which is a significant hurdle to success. The typical cost for individuals in the UK who opt to manage their order fulfilment is £5. When totalling up to the hundreds, if not thousands, of orders a company receives daily, this can cut its profit margin. Hence, they need to take special care of their spending by finding ways to decrease costs wherever possible.
To save time, energy, and money, online stores prefer using third-party fulfilment services, also known as 3PL, services to handle the ordering, packing, and shipping processes. Generally, good 3PL service providers are very upfront about fulfilling orders while keeping the pricing within budget despite the unpredictable fluctuations in energy bills.
Benefits of Choosing Fulfilment Centres for Reducing Energy Cost
Here are the five reasons detailing how effective fulfilment can lead to energy savings and how fulfilment centres can help you streamline and lower online shopping expenses for different kinds of online stores.
1- Efficient Inventory Management
When businesses prefer fulfilment centres over their inventory management, it helps them streamline their inventory and reduces the need for excessive lighting. In this way, lower energy costs would give them more benefits while maintaining significant stock levels.
2- Consolidated Shipping
Moreover, any fulfilment centres allow for consolidating shipping. It means they help companies combine multiple orders in free shipments, leaving all remaining headaches on fulfilment centres. This helps them reduce their transportation cost significantly, contributing to overall energy savings.
3- Smart Packaging Solutions
Adding more to it, effective fulfilment services generally involve the usage of innovative packaging. Relying on fulfilment centres for packaging reduces businesses’ costs by reducing the weight of the shipment, directly impacting energy consumption in logistics. Further, fulfilment services doing it for hundreds of companies would provide you with custom packaging solutions per your demands without being a burden on your pocket.
4- Automated Processes
Automation in fulfilment operations can lead to significant energy savings. Generally, small and medium businesses lack advanced automated technologies, such as conveyor systems and robotics. As a result, they either have to do everything manually or by spending excessive energy on traditional mechanics. On the other hand, all this hassle is managed efficiently by fulfilment services, thereby consuming less energy, particularly in high-volume operations.
5- Location Optimisation
Last but not least, fulfilment centres strategically located closer to key markets can minimise the distance products need to travel, reducing energy costs even further. This saves on shipping costs and allows for faster deliveries, improving customer satisfaction while leading to a more energy-efficient logistics network. Individuals and businesses can effectively reduce their energy bills while promoting sustainability by adopting fulfilment strategies that incorporate these aspects.
The Four Steps of Fulfilment Success at Kun Fulfilment
Businesses, particularly those in the Small and Medium Business (SMB) sector, face rising energy costs associated with their fulfilment operations. The combination of high shipping charges, hardware and software investments, and the need for effective data management can lead to significant profitability challenges.
At Kun Fulfilment, we are committed to streamlining your fulfilment process while reducing energy costs through innovative solutions and strategic outsourcing.
1- Smart Technology Investment
Many companies lack the resources necessary for a robust fulfilment operation, leading to increased expenditures in both hardware and software. Kun fulfilment recognises the importance of investing in a dependable and efficient data management system. This shift allows our clients to focus on strategic growth rather than getting bogged down by the complexities of industry mechanics.
2- Prioritising Workforce Efficiency
While some companies may choose to handle orders manually, this approach often results in escalating training and operational costs. At kunFulfilment, we are proud of our skilled workforce, well-versed in the retail supply chain, to help you navigate every aspect of the fulfilment process.
3- Optimised Space Utilisation
Securing adequate storage space is critical for any online business, but managing a warehouse poses additional challenges, including energy management and compliance with retail distribution standards. Thus, you can avoid the fixed costs and energy expenses associated with maintaining your warehouse, streamlining your operations and costs.
4- Strategic Outsourcing with 3PL Providers
For both new and established businesses, outsourcing fulfilment to a 3PL provider like Kun. We handle every aspect of fulfilment, including the procurement of pallets and forklifts, and maintenance. This not only alleviates the administrative burden but also minimises your direct energy costs.
Bottom line
Capping your energy cost has become a prerequisite for every business nowadays. At Kun Fulfilment, our commitment to reducing energy costs while enhancing your fulfilment operations is unwavering. Contact us today to learn how we can help your business thrive in this price-sensitive marketplace while successfully managing your energy expenditures.
