By Richard Tucker, Business Development Consultant at Prolog Global Fulfilment
As retail and ecommerce businesses scale, fulfilment increasingly becomes a strategic differentiator rather than a back-office function. Knowing when to outsource this function and to which partner is key with many brands continuing to rely on traditional third-party logistics providers that were never designed to support fast-moving, customer-centric fulfilment operations.
Knowing when to outsource your fulfilment
Effective fulfilment is crucial for customer satisfaction and operational efficiency in any business but as brands grow, so do the fulfilment challenges. Rapid expansion can divert attention away from core business activities and operational complexity can overwhelm internal teams resulting in order errors and service issues becoming more frequent. Space constraints may limit further growth and shipping costs can rise without access to optimal carrier networks. For businesses with ambitions to expand internationally or adopt new commercial strategies, these pressures only intensify.
Fulfilment and 3PL services – one size doesn’t fit all
When it comes to outsourcing there are generally 2 options – a 3PL logistics provider and an e commerce fulfilment specialist. It is important to distinguish between fulfilment and 3PL services, as the terms are often used interchangeably. Fulfilment refers to the complete end-to-end process of delivering products to customers, encompassing order processing, inventory management, picking and packing, shipping, returns handling, and customer experience integration. It sits at the heart of ecommerce operations and directly influences customer satisfaction and brand perception.
A 3PL, on the other hand, focuses primarily on logistics execution. Its role is to support the client’s logistics strategy through warehousing, order picking, and transportation management. While a 3PL may perform some fulfilment functions, it is not always optimised to manage the full ecommerce journey or to adapt quickly as customer expectations evolve.
Size can be a disadvantage
The size of a 3PL can often seem appealing as it provides confidence that it can effectively fulfil the number of orders. However, while scale can offer advantages, a 3PL that is too large may undermine fulfilment performance. Large 3PLs are typically built to serve complex, multi-client logistics environments and their strengths often lie in transportation management, bulk warehousing, and broad supply chain optimisation. They may have a surplus of resources and capabilities, which could lead to inefficiencies and higher costs.
At scale, large 3PLs can become operationally rigid, relying on standardised processes that struggle to adapt to changing order volumes or bespoke customer requirements. Smaller and mid-sized ecommerce brands may also find themselves deprioritised behind enterprise clients, while layered management structures and excess infrastructure can introduce inefficiencies and drive-up costs without improving service levels.
A well-structured fulfilment network can handle the scale of orders that a business may face, even if it spans multiple countries or has a diverse customer base. It is crucial for businesses to assess their current fulfilment capabilities and consider the potential for growth when evaluating the size of a 3PL or considering a fulfilment partner.
E commerce fulfilment demands speed, flexibility, and precision.
Fulfilment specialists, by contrast, are purpose-built for order fulfilment. Their operations are designed around ecommerce workflows, enabling them to handle fluctuating demand, high SKU volumes, omnichannel sales, and international distribution with greater agility. Rather than forcing brands into a one-size-fits-all model, fulfilment specialists focus on execution at speed while maintaining accuracy and service quality. A well-structured fulfilment network can support high order volumes, multi-country distribution, and diverse customer bases while remaining flexible and cost-effective.
Conclusion
Outsourcing fulfilment at the right time allows businesses to scale efficiently without sacrificing service quality, by saving time, reducing costs, offering better delivery speed, improved order accuracy, and improved customer experience.
In an increasingly competitive ecommerce landscape, fulfilment is fundamental in success. If fulfilment is on your agenda and you are questioning whether to outsource or if your current 3PL is truly fit for purpose, it may be time to consider a specialist approach to help you scale your business and unlock long-term growth.
