How to breakdown fulfilment charges
Some companies make their fulfilment and shipping charges too complex, so let’s keep it simple. To store and handle your items we would like to unveil what you should be looking for and where you should be looking at to compare fulfilment providers.
If you think about the processes of fulfilment they can be broken down into 3 sections. Goods in, Goods stored, and Goods out. Each one of these processes can have different connotations but the fundamentals stay the same, so here’s what to look out for in your fulfilment charges:
We can receipt goods in a number of ways ; by the box, by the pallet or multiple 20ft/40ft containers. We normally charge receipt of your items in two ways:
RH&D Palletised stock – (Receive, handle and distribute). Calculated on a ‘Cost per pallet’ handling charge. These are one off, fixed charges that if given enough planning and notice can help you manage your fulfilment costs correctly. Small deliveries receipted ‘by the box’ are normally free of charge.
Hand ball job: You may want us to unload a container full of the same or different size parcels and boxes with identical or variable stock included. This is normally completed on an agreed price or an hourly rate to help you budget.
Stock taking: You may want us to break down goods for a stock take from manufacturer or supplier to ensure you are getting what you are paying for. This can be done with ease, but to help save you money we would recommend a prior discussion with your manufacturer or goods supplier about what we are expecting to receive, this will help fix the charges and give you a chance to budget better.
Unlike most we keep our storage charges simple. We store in pallet spaces and dependent on volume of pallets, the more you store to be fulfilled the cheaper the pallet storage rate.
Picking and packing: Depending on the complexity of your customers orders we can agree a set pick/pack rate that will give you a first unit cost then an additional cheaper charge for each unit picked. This will help you be scalable and ensure you can turn up the order volume without feeling the costs.
Packaging: We can normally produce or source your packaging cheaper than you would be able to due to our buying power, so why not talk to us about how you want your goods to be packaged and we can go from there. We can break it down into a cost per order to give you a true cost. We would recommend buying your packaging in as much bulk as possible as the economies of scale will mean that the production lengths of each part will be longer which will bring the unit cost down quiet considerably.
Carriage: As you know Royal Mail and next day courier services work on volume, size and weight. We will always work with our suppliers to get your goods dispatched as quickly and cost effectively as possible. We are able to use your postage or courier accounts or our own so you do not have to worry about all the paperwork and processing. We also have access to all of the palletised networks in the U.K and Europe offering variable delivery services. From UK next day and economy services, to Airfreight, land freight and container shipping the services on offer are both cost effective and allow you to budget accurately.
If you need any further information or a price on your goods fulfilment then we would love to hear from you. Please either fill in one of our enquiry forms, or why not pick up the phone today and we can help answer all your questions.