eCommerce Strategy Consultant - Rick Watson - RMW Commerce Consulting

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Why Does Lousy Fulfillment Tank Revenue?

Users and evaluators of 3PLs be warned: I recently reviewed a Forrester study regarding the performance differences between top 3PLs (so-called "high maturity") and the bottom 3PLs.


What differences did the Forrester study find between high and low maturity 3PLs?

The difference presented by the Forrester data was striking. Here are a few key facts when comparing high to low maturity providers:

  • 32% reduction in average fulfillment cost per order

  • 35% on-time delivery rate improvement

  • 35% improvement in pick-to-ship cycle time.


What impact can poor fulfillment have on customer trust and loyalty?

Furthermore, 79% of retail leaders surveyed say that poor fulfillment can cause a loss of customer trust and loyalty. Just think about that for a moment.

If you are curious to read more, check out a much more detailed article below I've published on the RMW Commerce website.

This research follows research I did last year on the topic of the Fulfillment Accelerators -- how growing mid-market brands survive and decide how to manage their fulfillment and growing businesses.

Regardless of if you decide to use a third-party or keep fulfillment in-house, it always starts with the same thing: honesty.


What is the importance of knowing your fulfillment metrics?

In this case, honesty starts with a simple question -- do you know your metrics? If you don't, you don't understand what good looks like and will not even be able to clearly evaluate where you stack up between your existing performance, and the range of low and high maturity 3PL providers in the market.

In this case, knowledge is really power. But, it's also consumer loyalty and revenue too.

Read more here.


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