Introduction
The unexpected collapse of Huboo Technologies Limited (now Hub Realisations Limited Company number 09727464) left numerous businesses without warning to face severe disruption. The collapse resulted in unfulfilled orders and stock remained trapped in warehouses while companies needed to find immediate new fulfilment solutions. The disaster exposed the concealed dangers of depending on one logistics provider.
What Happens When a Fulfilment Provider Fails?
Business Operations Grind to a Halt
The collapse of Huboo prevented numerous eCommerce sellers from sending their products to customers.
The combination of unmet orders and customer dissatisfaction resulted in chargebacks and revenue loss.
The Process of Retrieving Stock Turns into a Major Challenge
The inventory of businesses became inaccessible to them.
The process of recovering their goods took weeks while some businesses never managed to retrieve their stock.
The search for alternative solutions leads to higher expenses for companies.
The emergency fulfilment services cost more than Huboo’s original pricing structure.
Businesses which depended on Huboo for cost savings ended up losing money.
How to Protect Your Business from Fulfilment Failures
Use multiple fulfilment providers to spread risk.
Check Companies House filings to monitor your provider’s financial health on a regular basis.
A backup plan should be established for emergency situations when a provider goes out of business.
Conclusion
The collapse of Huboo created business crises for numerous companies which demonstrates that depending on a single provider presents significant risks. Will customers trust Huboo Tech Limited or will they distribute their risk during this time?
