Let’s face it. You want to take your business to the next level, but are struggling to meet fulfillment requirements to handle demand. Starting and/or scaling a business with limited warehousing space is a major challenge for a growing business. With ecommerce on the rise and warehousing space at an all time premium, the demand for outsourcing order fulfillment is becoming ever more transparent. In this article we will detail some of the main benefits of partnering with a 3pl company.
Customer Service
Business to customer: The core competency of a 3pl business is that it can receive, store, and fulfill products in the most efficient way possible. This leads to better fulfillment success rates as well as faster shipping times. Consequently, customer satisfaction improves as customers are more informed on shipping details of their product and they receive it faster. 3pl companies often have a large customer service team that is ready to serve the needs of your clients. This can range from product dissatisfaction to damaged goods. It is important that your customers get a fast and accurate response from a service team member to ensure that their needs are met. One instance in which this can be very beneficial is quickly identifying manufacturing defects that can cost you time and money.
Business to Business: The relationship between a 3pl company and their clients are often preferred over larger fulfillment options such as Amazon FBA. This is because they are better equipped to handle specific needs and are better suited to tailor the fulfillment process. In the initial stages of order fulfillment, a 3pl can help you seamlessly determine carrier options, pricing, equipment needed, and provide prep services that require constant interaction. The fact is, many companies look to make revisions in the packaging and bundling of their products. This can be a nightmare to handle when working with a large fulfillment center as they are not equipped to handle individual needs. They will not have the time to get on the phone with you and labor over how to make the product better. A 3pl is in the venture with you, and thus will always be there to improve the initial fulfillment process. After orders have been fulfilled and quickly delivered, 3pl companies are better able to track inventory and handle any service related issues that may arise in the process. One of the most daunting problems, returns, are a specialty of many 3pl companies. Not only can they take back bothersome returns, they work with you to decide how they can be added back into inventory if possible.
Innovation
It can be very tough to innovate the supply chain process of a business when you are constantly focused on other aspects. Time consuming aspects of running a business, such as R&D, product cost, and employee management can take away from innovation within the supply chain process. 3pl companies are born to innovate and through years of experience, can find methods to improve both your product and your supply chain process. 3pls work to integrate supply chain technology into your business process. This will provide cheaper costs to you without sacrificing service to your customers. They are better able to understand the logistics problems of tomorrow and prepare for issues that may arise in the future that can hamper your growth. Some of the innovative technologies that 3pl companies can provide are tracking software, inventory management software, EDI, transportation management systems, and RFID tracking. These capabilities will innovate your supply chain process and keep the ball moving forward.
Flexibility/Properly Scaling
One of the main challenges of trying to fulfill orders without a 3pl is determining the warehouse space needed to meet demand. With little to no experience, many companies are left to forecast inventory turnover without having the proper data to support it. This can lead to leasing a warehouse space that is too small or too big. If the warehouse space is too small, you are going to have to quickly look to find a new warehouse to meet demand which can be very costly if orders can not be fulfilled over a specific time frame. Additionally, transferring inventory and equipment can be a very painstaking process if you are not fortunate enough to get a new warehouse that is close by. If you lease too large of a warehouse, you are often left with dead space and are just throwing money out the door.
A 3pl company is designed to scale with you. You only pay for the space that you need. If the business grows, most 3pl companies will be able to accommodate this increase in demand by providing additional space, all under the same warehouse roof. In addition to warehousing, a 3pl can better handle an increase in shipping demands. They can set up additional carrier pickups as well as drop offs that may be harder for a smaller scale company to negotiate. Advanced equipment needed in the fulfillment process, as well as human capital is something that a 3pl will always be better equipped to handle.
Customers, partnering with 3PLs, can save significant amounts of time when it comes to scheduling loads or finding carriers. Using supply chain management software, 3pls can automate load scheduling for a regular day/time of the week, irregular scheduling, or when specific inventory is running low and needs to be replenished. This will save you time as you will spend less effort worrying about ensuring carrier pickups and drop offs. One needs to consider that ecommerce is in a current state of boom and there is a very competitive market for selecting carriers. Many of these carriers such as Fedex and UPS, are having trouble meeting their own demands. This is why it is important to have an expert in this field that has deep connections to ensure you are getting the best service for your dollar.
Save Time and Money
Human capital is one of the biggest expenses that companies face when trying to fulfill orders on their own. On the surface level, companies need to hire warehouse workers that can pick, pack, and ship orders efficiently and effectively. However, companies quickly learn that much more intensive training is required to run the supply chain smoothly, not just basic labor. Workers that are better trained with more experience can help identify supply chain issues before they arise. Additionally, they are often better at providing feedback to management on how the process can be better streamlined. This is difficult for new workers to provide as they have limited experience to know what these potential issues are. This is where a 3pl can step in. All employees in a 3pl are trained on how to properly pick and pack products the way you desire. This is going to create a finished product that truly impresses your customer and keeps them coming back for more. 3pl warehouse workers are all trained to use warehouse management software to adapt to changes in the supply chain. They can identify key concerns based on previous experience, and will report to management immediately. This is critical in cutting costs.
More importantly, having advanced warehouse workers is going to cut down the risk that may arise from fulfilling orders on your own. 3pls have high safety standards and provide a plethora of training with heavy machinery to limit warehouse injuries as well as damaged inventory.
Bottom Line
The bottom line is that 3pls are constantly looking to refine their process. From grid walks to technology innovation, they are constantly trying to find ways that will cut costs for both parties. They understand the expectations that clients set forth and are ready to tackle any supply chain problem that is set in front of them. Partnering with a 3pl will improve your customer service, carrier relationships, shipping success metrics, shipping speed metrics, and enable you to truly scale your business in a healthy way. JDS Prime Logistics is a leading 3pl provider that is ready to handle your needs. We look forward to addressing any concerns you may have and encourage you to reach out to us.