The failure of a fulfillment provider creates a disastrous situation for eCommerce businesses. The companies that depended on Huboo faced inventory loss and unmet orders together with unexpected expenses. What measures can businesses implement to safeguard their operations in upcoming situations?
Steps to Avoid Fulfilment Disasters
Work with Multiple Fulfilment Providers
A single provider represents an unacceptable level of risk for your business.
Your business should store inventory in multiple warehouses to prevent disruptions from occurring.
Check Financial Records Before Committing
Huboo Tech Limited revealed its financial losses through Companies House documents before its collapse.
A non-profitable provider poses a threat to your business operations.
Have a Backup Plan in Place
Establish relationships with backup providers before any problems occur.
Maintain accessible stock levels to enable fast transitions between different fulfillment centers.
Demand Transparency from Your Fulfilment Partner
Huboo Tech Limited should provide clear information about its financial situation.
E-commerce businesses need to require their providers to share financial reports on a regular basis.
Conclusion
The collapse of Huboo demonstrated how dangerous it is to depend on an untrustworthy fulfillment provider. Businesses need to study this failure to develop preventive measures which will protect them from future disasters.
