How to find the perfect 3PL company for your order fulfilling?
Outsourcing your warehousing and shipping - what to consider when choosing your 3PL partner?
Third party logistics (3PL) companies can represent an important ally for your business, by helping you manage your operations, giving you more time to focus on other crucial areas of your business. Activities such as managing inventory, shipping, receiving, picking, packing and other warehousing processes can consume a lot of time, and 3PL companies can provide services to take care of all this important activities.
For ecommerce businesses third party logistics providers are essential, because they handle and take care of order fulfillment, giving owners time to focus on making sales. This is why it is so important to find the right 3PL that is perfect for the needs of your company, and that can be reliable on delivering consistent positive results. On this article we will address the most important things to consider when choosing your 3PL partner:
- Location: The closer your products are to your target areas, the easier it will be to reach your customers and create value for them. It can also help with how fast your products reach your buyers. The location of your 3PL partner’s warehouse should match your distribution plan, and preferably be close to you higher consumption areas. In some cases, 3PL companies have multiple warehouses in different countries and you can choose to work with the one that makes more sense for you.
- Technology: Your 3PL provider should offer advanced technology solutions, this will make them more beneficial as partners as they will be able to increase their productivity and even decrease labor costs. By utilizing the right technology, processes and services can be optimized and automatized. You should also make sure the integrations offered by the 3PL company are compatible with your systems.
- Scalability: Look for a logistics partner that has the ability and capacity to scale your business and respond to your changing needs. As your sales and operations grow, you will want a partner that can adapt, and help you scale your business in the best possible way.
- Price: Although this is an important matter in the selection of your Logistics partner, basing your decision solely on the price can be bad for your business. You don’t want to end up partnering with a company that does not offer the service quality your business requires. You should consider a lot of factors including the price, making sure the costs will not affect your profitability, but also other things such as the value this partner can add to your work. The cheapest isn’t always the best solution.
- Area of expertise: Typically, logistics companies have a particular trait they specialize in, so the goal is to find those 3PL companies which their area of expertise matches the needs of your business. Before choosing a provider, it would be good to identify the specifics of what you need, to be able to find the most suitable partner who can complement them.
Focusing on this areas during the search for the correct 3PL company will give you crucial information and understanding of every potential partner, which will make the decision process so much easier. This decision must not be taken lightly as it will have a big impact on the operations of your business for better or for worse. So making sure, you posses all the information needed before making this important choice can make the difference.
Checklist: How to Select the Appropriate Service Provider?
Once you decide to outsource your logistics, you need to identify the right service provider. Here’s a checklist what to consider:
- Warehouse management system and integration to you Online Store.
- Shipping methods they provide you.
- Transparent Pricing (monthly fees, startup fee, fees per title etc.)
- Warehouse location and capacity.
- How the receiving of goods is handled?
- Scalability when your operations grow – pricing and capacity.
- International shipping possibilities.
Benefits of outsourcing logistics
Focus on growth
Does maintaining your online store inventory use up time from the core business itself? Could you use your time more efficiently? Outsourcing storage and shipments can bring entrepreneurs time to focus on online marketing and sales as well as online store site optimizing, product descriptions, and thereby generating growth.
Logistic services with experience
For many business owners, the supply chain is not their first area of expertise, which can make optimizing of logistics more challenging. When outsourcing to a third party, you can rely on in-depth industry knowledge as well as a proven success. OGOship has designed the warehouse management system and value-added services to meet the demands of growing online stores.
No fixed costs and ease of scaling
If you are growing or entering new markets, or even experience seasonal changes, inventory levels and shipment needs naturally vary. It may not be possible to accurately predict the amount of warehouse space or the volume of shipments that your online store needs, but with outsourcing, it is easy to scale operations with minimum risk.