It takes a village to raise an e-commerce business. The good news is that when e-commerce successes happen, they come with significant gains for the people who help make products and those who get them to customers on time.
Red Stag Fulfillment is one such logistics and order fulfillment company that is turning valuable work supporting e-commerce businesses into an expansion. The company broke ground on a 313,000-square-foot extension that will increase its warehousing and fulfillment capabilities. The $16 million project is scheduled to complete by the end of August (2020) and will generate an additional 150 to 200 new jobs.
Expanding with the Market
Companies like Knoxville-based Red Stag Fulfillment are the hidden force behind most of today’s e-commerce businesses. These third-party logistics providers (3PLs) help ensure that ecommerce customers receive the right order at the right time while keeping costs low. By focusing on core warehouse and shipping activities for others, 3PLs reach high shipment volumes that allow them to grab discounted rates from carriers, while also implementing industry best practices for order and inventory management.
When the process is done right, the customer never knows that someone like Red Stag Fulfillment was involved.
That level of service and invisibility is becoming more critical as ecommerce sales expand. Ecommerce sales hit a record in the 2019 holiday season, growing 18.8% compared to 2018. And, having the right 3PL fulfillment partner can play an even more significant role: limiting the number of returns you have to process thanks to increased accuracy of last-minute orders that scramble out of a warehouse.
Every beat of growth in ecommerce increases complexity that companies must understand to respond to, whether that’s choosing an outsourced 3rd Party warehouse or adopting their own warehouse and inventory management solution.
A Global Presence at Home
Red Stag Fulfillment’s expansion is happening at its existing Knoxville, Tennessee location. The increase will allow it to serve existing clients best as well as extend offers for new businesses around the world. Any brand with a U.S. customer base can reach them within two days thanks to Red Stag’s footprint.
For 2019, the company shipped 99.998% of orders on time, with 99.997% order-accuracy.
“The new expansion is part of Red Stag Fulfillment’s commitment to calculated, profit-driven growth as well as delivering fulfillment excellence to our customers,” said Red Stag Fulfillment President Eric McCollom. “Strong companies are built brick by brick, and that’s what we’re doing for Red Stag Fulfillment and our customers with this growth.”
By enabling more companies to outsource their warehouse and fulfillment efforts, Red Stag is empowering business owners to focus on mission-critical sales and customer service elements of their operations. Not having to worry about orders getting out the door makes it easier to test new products and markets, offer greater deals, and adapt as the economy changes.
Their advice to anyone considering outsourcing but not knowing where to begin or what to expect: Ask. The best 3PL partner for you is going to be someone who knows your industry segment, understands shipping constraints and customer demands, and takes the time to help you understand those things too.
Find a company that feels like a friendly neighbor (even if they’re hundreds of miles away) because that’s the kind of help we all need to keep things running smoothly.