Examining 3PL's Advantages for E-Commerce Business Operations

For the most part, eCommerce enterprises eventually realize that they need more resources, expertise, and time to manage everything independently and turn to outside assistance. To handle the duties they are unable to or choose not to do, they frequently resort to third-party logistics or 3PL. What precisely is a 3PL provider, what services do they offer, and what are some 3PL benefits that could be on your mind if you're new to the eCommerce scene?

About 3PLs (Third-party Logistics)

A 3PL logistics operator can store your goods on your behalf. Your belongings will be selected, wrapped, and dispatched. 3PL is an essential link between your production operations and your customers. When you complete orders, your company will grow and your customers will be happy.

These other names may also refer to 3PL businesses:

• Fulfillment business
• Order fulfillment businesses
• Warehouse for fulfillment
• Centre of fulfillment

Fulfilling your fulfillment and storage needs will help you maximize your supply chain management, even if not all 3PLs offer the same services.

Role of 3PL in E-commerce Operations

Among the main duties of 3PLs are inventory control and order fulfillment. Centralized inventory and a targeted distribution approach can achieve cost savings. Furthermore, 3PLs provide transportation services to manage the movement of goods between various supply chain sites. This means arranging for shipments from customers and suppliers, figuring out the most efficient delivery methods, and providing up-to-date information. Some 3PLs can also help with global supply chain-related problems, such as import, export, and customs procedures.

Why 3PL is Essential for E-commerce Success?

Letting a 3PL manage your logistics and inventory can free up your resources for growth-oriented tasks like expanding your clientele or creating new product categories. Additionally, certain e-commerce businesses could collaborate with fourth-party logistics providers or 4PLs. These suppliers support the planning, management, and optimization of your supply chain and logistics by serving as consultants and managers. They could also assist you in finding and managing 3PLs.

3PL Logistics Unveiled

Third-party logistics pertains to the previously mentioned services. However, there is some language overlap here, which you should be aware of to talk confidently about the function of 3PL services at your business. 

One activity area is third-party logistics, which includes order fulfillment, inventory control, and transportation. When speaking or writing, the phrase is frequently shortened to 3PL and mentioned about operational providers. You may also hear the term "freight forwarders" if your 3PL assists with transportation coordination. In addition to managing inventory movement, freight forwarders may also reduce costs.

What does 3PL offers?

By using e-commerce fulfillment services offered by a third-party logistics provider, you may escape the strain of handling logistics. Storehouse operations comprise the majority of third-party logistics services.  Your 3PL warehouses most likely cater to several e-commerce businesses, reserving or assigning warehouse space for each customer's inventory storage. Then, when orders come in, warehouse staff members choose and package goods to be sent to your customers.

How are 3PL Warehouse Operations carried out?

The warehouse where your products are stored, along with several specialized equipment like robots, shelves, and forklifts, are owned or rented by your 3PL supplier. Moreover, 3PLs employ, develop, and oversee their workforce and warehouse. If your items need special handling, the 3PLs ensure the warehouse staff knows and adheres to the appropriate procedures. Your 3PL warehouse personnel can place and retrieve goods more efficiently with the help of warehouse management software. Additionally, that software may maintain your e-commerce website current so clients can purchase with you and view your available inventory in real-time.

Physical and digital security measures help safeguard inventory and preserve the integrity of the inventory management system. Physical security measures can include video and in-person monitoring and biometric or password-based access restrictions for warehouse areas. Access controls, data encryption, and other precautions are examples of digital security.

The 3PL warehouse personnel compares the shipping papers and the receipts when your items are delivered to a fulfillment center for storage. Bills of lading and packing lists are two documents that may be used to prove the product's chain of custody. This check guarantees that the correct items are delivered in the proper quantities. They'll also check for damage. Staff then selects products from shelves and packages them for delivery when it comes time to satisfy an order. They ensure that parcels are prepared for carriers to pick up when the shipping procedure is finished.

The Top 7 3PL services to look for:

Contrary to popular belief, fulfillment can involve more complexity. When searching for 3PLs, consider the advantages of outsourcing fulfillment for your company.

• 3PL E-commerce Platform Integration

Warehouse Management System software is broadly used in fulfillment warehouses. It can be effortlessly integrated with popular e-commerce platforms. Your shopping carts may also be linked to using custom APIs. You can support all sales channels and watch real-time order tracking through a dashboard by collaborating with a seasoned third-party logistics company.

• Shipping and Receiving of Freight, including FTL and LTL

When shipping inventory, full truckload (FTL) and less than truckload (LTL) freight services are used depending on volume. Understanding how to utilize these choices best might result in freight cost savings.

FTL services can help develop volume-based cost efficiencies if you handle sizable orders in regular cycles. LTL could be more advantageous if you must divide orders due to supplier scheduling or have urgent orders to meet demand surges. Some 3PLs also offer residential LTL freight, which is helpful if you need to ensure that consumers receive big products.

• Selection, Packaging, and Delivery

Services like pick, pack, and ship form the foundation of order fulfillment. Customers' orders placed via one of your sales channels are sent straight to your fulfillment center. A picker locates and packages the order's contents, ensuring the packaging materials remain economical. Additionally, packers are responsible for attaching the appropriate shipping label to every item and delivering it to the final-mile carrier, which will provide it to your client.

• Kitting 

Kitting is assembling parts or merchandise into a single package for shipping. Whether your firm operates on a subscription basis or needs any other kitting service, working with an expert 3PL is critical.

By outsourcing fulfillment to the appropriate 3PL partner, you may expedite the packing and shipment of several goods sold simultaneously or as part of a promotional bundle. Complementary item bundling is a popular e-commerce approach that streamlines the consumer experience and enhances the product offering.

• Same-day Dispatch

Certain third-party logistics companies offer same-day shipments. When you choose this delivery method, your customers' purchases are selected, packaged, and dispatched on the same day they are made. Faster order delivery to your clients via same-day shipping might increase customer satisfaction. 

• Inventory Control

Having a 3PL partner can help you manage your inventory more effectively. Account representatives frequently offer advice on supply chain management, the best times to replenish, and how many goods to stock for each season. This cooperative strategy ensures effective stock management, saving you the trouble of doing it alone.

• Reverse Logistics

Reverse logistics, or returns management, must be completed as effectively as feasible. Returns are already a loss, but by collaborating with a knowledgeable 3PL, you may lessen that loss. For you to resale undamaged things to someone else or take other necessary action, your supplier inspects returned items to evaluate the damage and determine if they are suitable for stock return.

A strong 3PL partner can help lower your return rate by minimizing fulfillment mistakes and damage. Your return rate also depends on several factors, including the kind of product you offer.

Key Benefits of Third-Party Logistics

E-commerce companies may expand and prosper with the aid of outsourced fulfillment services. The following summarizes some advantages of working with a third-party logistics service.

• Renting warehouse space is not required. You may scale warehouse capacity using third-party logistics, which reduces storage costs and facilitates expansion.
• By selecting a 3PL based on the locations of their warehouses, you may position your items closer to your clients. This translates to less expensive shipping and quicker delivery.
• You can reduce your shipping costs with your 3PL partner. Because fulfillment warehouses ship in large quantities, they may be able to negotiate lower shipping costs with big carriers. This could be particularly relevant if you transport big, heavy, or bulky items.
• You have access to freight shipping, package consolidation, and kitting—value-added services that may improve your business.
• You acquire a knowledgeable companion. With the help of a third-party logistics provider, you can choose the suitable provider for your business for packaging, shipping, inventory operation, and reverse logistics. 
• Fulfillment experts give your customers special ordering, packing, and shipping services. As a result, client faith and satisfaction may increase. 
• Your staff may concentrate on your company's core capabilities, freeing you to focus on product development, marketing, and sales.
• Poor fulfillment risks compromising customer happiness and profitability, but with the assistance of an expert 3PL, you can expand your organization for predictable development.

3PL Services Facilitate E-commerce Expansion

Because of 3PLs' effectiveness and scalability, companies can better manage higher order quantities, adjust to changing market conditions, and improve operational agility. Furthermore, 3PLs frequently provide cutting-edge technological solutions like real-time tracking and inventory management systems. These can help create more efficient operations and better client experiences. In a competitive market environment, 3PLs help online firms expand and scale by providing continuous logistical assistance, alleviating operational difficulties for e-commerce organizations.

Go for MapMyChannel and choose your perfect 3PL provider

When your company is prepared to grow, MapMyChannel might alleviate the fulfillment burden. Using a 3PL for outsourcing may improve customer satisfaction, increase cost control, and streamline processes. ShipStation Integrations and ShippingEasy Integrations are the two main 3PL providers. Order accuracy may be increased with the assistance of knowledgeable fulfillment workers, and MapMyChannel promises to reimburse you for any errors. Ready to learn how a 3PL may support the success of your company? Have a discussion with MapMyChannel to select the ideal 3PL supplier.