3 Step Guide to Choosing the Right Third Party Logistics Provider for Your Company

Third party logistics providers play a huge role in the successful order management and delivery when it comes to eCommerce and online transactions. A supply chain incorporates different factors like packaging the manufactured items to prevent damages, warehousing and storing of the goods, and shipping them to the correct locations. All these aspects are integral to 3PL management and require special attention. Besides, every brand or company has some of their personal issues to take care of as well. In such a situation selecting the right 3rd party logistics service for handling the order fulfillment of your company requires special attention. Read on to find out the key points that you should consider before partnering up with 3pl and order fulfillment agencies.

Inhouse decisions: The very first step is to jot down your logistical requirements and be clear about what are your priorities and expectations. You must also outline which responsibilities you want the company to take up directly, rather than depending on the fulfillment agencies.

A special team: It is better to have in-house experts work closely during and after the 3PL selection process. Having experts to help you out means that your team will ensure that all the prerequisites and necessities are fulfilled by the selected 3rd party logistics company. Rather than creating the team handling the supply chain after the partnership has been confirmed, having the members on the board from the get-go can yield better results.

Research and shortlisting: Once you have your end set with a clear-cut objective and a functional team to take care of the same, the next step is to complete your research. Go through as many sources as possible to understand how your short-listed 3PL and order fulfillment centers work. Though it does not seem very practical, asking around in your close circles can be of huge help in this context. 

3 Processes That Are Closely Related to Inventory Management but Not quite the Same

If your profession is related to the present-day eCommerce scene, terms like inventory management, inventory optimization, and logistics management become a part and parcel of your daily life. A fulfillment logistics company offers different services like inventory and warehouse optimization, and order management. Though the terms might seem similar, they are drastically different in reality.  It is seen that people often confuse inventory management and handling with related processes that are equally significant but are not quite the same.  The eCommerce fulfillment procedures are pretty complicated and involve multiple factors. If you are interested in understanding the difference between inventory management and other related processes read on to find out. 

What are the processes linked to inventory management?

Managing the stocks, restocking the finished products, and their warehousing all come under inventory management. That being said, procedures like order management and supply chain management are equally important for completing the customer's orders. Some of the other closely linked processes include the following. 

Inventory Control: Inventory control is a part of the main inventory management process. It deals with moving the items and finished products stored inside the storage unit or the warehouse. 

Inventory Optimization: Inventory optimization is one of the most crucial processes that go into managing the stocks and stored goods. This process deals with how efficiently and effectively the fulfillment services can manage the inventory in the first place. This helps in cutting down the costs and the expenses incurred along with more organized and methodological management.

Order Management: Tracking the placed orders and marking out the stock the moment the supply vehicle reaches the warehouse is of paramount importance when it comes to fulfillment of the online orders placed by the customers. Fulfillment logistics companies spend the bulk of their resources on receiving and delivering the orders along with taking the help of the software systems for the same for the best results.

How Logistics Fulfillment Companies Can Help You as a customer:

Logistics fulfillment company play a very important role in the whole supply chain and the other aspects related closely to e-commerce at present. Logistics refers to all the proceedings that are linked with the transportation of the raw materials along with the finished goods and their storage, warehousing, shipping and even return. The seller cannot be present in every corner of the world where their products are being sold. That is why a bulk of the main work falls on these fulfillment logistics company as it becomes their responsibility to ensure that the customer is satisfied with the service. 

What makes Logistics and Fulfillment Services Beneficial for the Customers?

The answer is simple. Fulfilment center India provide a variety of different services that makes the entire buying and selling a lot simpler from the get-go. These agencies are like an added help with their own team of professionals and experts who focus solely on the logistical aspect of the job. This leaves your main team to concentrate on the more relevant issues. Some of the most important services that make fulfillment logistics company so popular are as follows:

Choice of Delivery: Whether you need the order to be delivered today, tomorrow, or on a scheduled time is made possible by these service providers.

Ease of Return: In many cases, the customer would want to return the order due to various reasons. Most of the big names in this industry make it a point to pick up the item to be returned from the doorstep of the buyer themselves making it a lot easier for the customer. Ensuring A speedy and simple return process is an integral part of the fulfillment center’s job.

Order Tracking: You as the client can easily track your order and see the exact stage your order is at. This is an added advantage as when the customer knows all the tiny nitty-gritty of their order generation, it makes them feel relieved. 

what are the types of services offered by an e-commerce order fulfilment centre?

3PL companies in the USA or commonly known as fulfilment centres exist to act as a backbone of online vendors or eCommerce businesses. With the outbreak of a covid-19 pandemic, several consumers were compelled to purchase their products online.

Earlier, the trend of online shopping was seen as a luxury- it was confined to rich-class or wealthiest families only. However, with the emergence of several eCommerce stores, online shopping is becoming more affordable and accessible for consumers all over the world.

We’ll walk you through the basic roles carried out by top fulfilment companies.

Today, eCommerce retailers work under extensive pressure for several hours to ensure the products are shipped to the consumers on time. While it’s easy to fulfil the steps involved in online order processing initially, an uptick in the consumer base can make it difficult for shop owners to keep an eye on everything.

Here, the role of fulfilment centres comes into the picture. These organizations have the knowledge to process order receipts, package goods, and ship them to consumers’ addresses. Next, the rate of return on consumer’s orders is processed.

Both small-sized as well large sized businesses can outsource the order fulfilment processes to a 3PL service provider. The professionals working within a fulfilment company are responsible for processing consumers' orders right from the beginning (i.e., once an order is placed by the customer).

The fulfilment centres will be responsible for handling duties such as unloading goods from the shelves, warehousing, shipping, processing returns, as well as picking and packaging. Modern fulfilment centres have a technical infrastructure for the purpose of managing and streamlining fulfilment processes- especially order fulfilment software.

What are the advantages of seeking out e-commerce fulfillment services?

Once an order is outsourced to a fulfilment centre, the eCommerce business can focus on the expansion of its operation rather than shipping, warehousing, or packaging.

Why are the services of 3PL shipping companies in Michigan advantageous for ecommerce business owners?

New Ecommerce business owners are familiar with the term 3PL logistics provider; however, they aren’t aware of the roles carried out by experts working in fulfilment centers. So, what does the term fulfilment center entail?

A fulfilment center employs a team of experts commonly referred to as third-party logistics provider. These experts can process online consumer orders on behalf of an ecommerce business owner.

 

This process can include everything-right from warehousing, inventory management, shipping, and so on. Such processes are carried out inside a fulfilment center. One of the major advantages offered by a fulfilment center is that it allows ecommerce sellers to hand over their primary responsibilities to a reliable person.

 

It helps business owners to save their time and money. Business owners will have the time to carry out other businesses tasks like product selection, generating traffic to their website, sales and marketing, and so on.

 

The working algorithm of a fulfilment center is methodical and highly effective. An ecommerce retailer can rest assured as a part of their sales procedures will be carried out by experts. There are several top 3PL companies in Michigan.

 

What is the working procedure of 3PL companies in USA?

An ecommerce retailer has the autonomy to outsource his fulfillment tasks to a third-party logistics provider. A relationship has to be established between the ecommerce business owner and a 3PL shipping companies to carry out the fulfilment procedures. Next, the products are endorsed to fulfilment centers once an order is placed by consumer.

 

Fulfilment centers are responsible for storing inventories within the warehouse. The product order will be packaged, picked up, and shipped, once it is processed. These centers are known for offering inventory and stock management services.

 

Once a product order is placed by a consumer, they will pay a significant amount for the items purchased through the website of the online store. The products will be shipped and packaged via 3PL solutions.

How can top order fulfilment companies cater to the needs of eCommerce business owners?

A fulfilment company is responsible for carrying out tasks that are involved in online product selling on behalf of an eCommerce seller. Here, an eCommerce seller will outsource his tasks to a third-party logistics provider. A 3PL logistics provider is known to handle processes related to packing, shipping, receiving orders, picking up, and keeping an eye on the rate of returns. Check out the services provided by top order fulfillment companies.

How does a fulfilment company work?

Fulfilment companies often allow a business to outsource its order fulfilment procedure- right from picking up goods, packaging, warehousing, shipping, and processing returns. Usually, a modern fulfilment center is known to implement advanced technologies.

 

An advanced order fulfilment software can streamline and manage fulfilment processes in a smooth manner. Once the fulfilment and management processes are outsourced to a professional fulfilment company- businesses will get a chance to think about their expansion. They’ll no longer have to worry about shipping, warehousing, inventory management, and returns.

 

A 3PL service provider is known to handle orders and manage inventory in an efficient and accurate manner. An advanced fulfilment software allows businesses to access high-quality data to gain valuable insights.

 

Apart from this, businesses can manage their inventories via cloud-based technologies, batch optimization and tracking, custom reporting, and real-time stock visibility software. A fulfilment company is known to enhance the consumer experience.

 

It offers incredible shipping options, and secured packaging options, along with built-in software to track orders and returns. These systems can increase customer satisfaction. The services provided by order fulfilment companies in the USA can allow e-commerce business owners to expand their consumer base.

 

With the availability of shipping facilities offered by a fulfilment company, eCommerce business owners will be able to ship their products to different nooks and corners of their world. Learn more about the order fulfillment services by reaching out to the fulfilment center.

What are some of the exceptional services provided by third-party logistics companies in the USA?

Ecommerce sellers who are new to the world of online buying and selling are unaware of the roles carried out by fulfilment centers. It’s important for eCommerce business owners to understand the meaning of fulfilment centers, the roles carried out by them, and the benefits of hiring them.

A fulfilment service is fulfilled by a third-party logistics or 3PL provider or even a third party. Here, an eCommerce seller will outsource their responsibilities to a third party logistics provider. 

 

Once the service is outsourced to a 3PL service provider, the service provider will start to process the orders immediately. Whenever an order is placed via an eCommerce retailer’s online website, it is forwarded to the service provider. 

 

Next, the experts working in these centers will be responsible for carrying out activities like inventory management, storage, warehouse, packaging, and shipping. It helps eCommerce retailers to hand off major tasks to a third party.

 

As a result, retailers can focus on major business tasks related to marketing, product selection, increasing traffic to their website, and so on. 

 

While the terms warehouse center and fulfilment center are used interchangeably- the functions of the two facilities can differ from each other completely. A warehouse’s function is limited to inventory storage- however, the services of a fulfilment center are versatile. 

 

What are the functions of a fulfilment center?

 

Third party logistics companies in the USA are known for handling a number of duties:

• Receiving inventory from the seller
• Creating pick lists. Picking up products and inventory from storage facilities when orders are placed and received
• Assembling necessary kits and items
• Packing boxes
• Labelling shipments
• Shipping orders
• Handling product returns
  
  

While the service cost of a 3pl service provider in USA can seem a bit expensive initially, it can yield lucrative outcomes and help eCommerce sellers to save their time, efforts, and money in the long run.

Four inventory management techniques implemented by the top fulfillment centers in India

Inventory management is a term that you will often come across in the spectrum of eCommerce. 3rd party logistics companies and order fulfillment agencies across the globe place special attention on the different inventory management techniques that help your company to deliver the ordered items on time at the correct addresses. Managing the inventory essentially deals with how much of the stock needs to be refilled and how well they are packed and shipped. The top fulfillment centers in India take the help of numerous formulas to analyze the requirements and come up with as accurate results as possible. Read on to find out which inventory management technique would work the best for you. 

What are the different inventory management techniques that the best 3PL solutions in India apply?

There are several different methods and ways of handling inventory. Before you take the plunge and decide on which fulfillment company you are going to hire, understanding which technique works the best for you is important from the client’s point of view.

ABC Analysis technique: This method starts by recognizing which items are the most popular and which aren’t. This leads to better restocking and availability of the products.

Batch Tracking: This technique is applied to keep track of the expiry dates of the items in the storage. It groups those products that are defective and/or are not fit for delivery to manage the inventory.

Bulk shipping: Manufacturers send their finished goods to the 3PL solutions and order fulfillment centers for storage, order picking, and shipments. In certain cases, the logistics unit keeps the packed materials as it is and ships them in bulk without unpacking. 

Cross Docking: Cross docking is a method where the need for warehousing and storage is completely scratched off. By implementing this method, the items are moved from the supply truck to the delivery vehicle directly, without storing them in a unit before the shipping. 

Services on the hire by 3PL solutions for successful order fulfillment:

A very important and intrinsic part of any kind of eCommerce chain is the storage, warehousing, and shipping of the ordered items. When a company starts on its venture, it is seen that once the business picks up, there is a lack of storage units where the manufactured items can be kept before shipping. 3PL solutions are the help that you need when you find yourself in such a situation. The main role of a 3rd party logistics service is to store the inventory for their clients. From order pick up to packing to finally shipping them off to their respective buyers, order fulfillment services do it all. If you are new in the sector, read on to understand how a 3PL company works.

What are the services that a third-party logistics agency offers?

A Logistics fulfillment company does everything vital for successfully ‘fulfilling’ or completing an order. Starting from the acquisition of the goods to be stored, carefully storing them so that no damage is done, picking and packing the orders, and up until they are delivered — these agencies provide complete aid in all aspects. The primary services left at your disposal by these agencies include the following.

Warehousing and inventory management: Warehousing and inventory management refer to how the items that will go out for delivery are managed. Storing and correctly selecting orders are extremely vital for delivering the correct order.

Picking and packing: Picking up the orders from the 3PL fulfillment centers is a tough job as even the slightest of mistakes could mean a loss for the company. Similarly, if the items are not packed properly the chances of damage increase leading to similar results.

Shipping and returns: Just as the delivery process is essential to order fulfillment, receiving and returning the orders are also of equal significance. 3rd party order fulfillment agencies make sure that your customers are satisfied with both of their services.

How can you differentiate between fulfillment companies and 3rd party logistics services?

In the era of digitization where even shopping of all sorts occurs on the internet, the successful delivery of an ordered item to the customer plays a huge role in either making a brand or in breaking it. Ecommerce fulfillment companies and 3rd party logistics companies can be the seller's best friends in such situations. Though the two terms — fulfillment services and 3PL or third-party logistics might seem similar, actually there is quite the difference. That being the case, their perfunctory functions and basic utilities are quite similar in nature. If you are interested in selling your products on the internet, read on to find out the differences between the two.

What are the main points on which eCommerce fulfillment services and 3rd party logistics companies can be distinguished?

Though fundamentally similar, the cost incurred, the dynamicity, and the role of the services can be clearly distinct. There are several points of difference between them and it is suggested that before you make a choice, you understand what sort of services you ultimately need.

The nature of services: Order fulfillment centers in India as well as across the world, make delivering the right order at the correct address their sole priority, and therefore they take care of all the necessities to do the same. 3rd party logistics are more about providing the additional help required by providing logistical aid like storage space, warehousing, and even transportation.

The Cost Incurred: 3PLs and fulfillment centers both require a substantial amount of investment at first and both are quite cost-effective in the long run. That being said, 3PLs are seen to be a little more pocket-friendly than full-time fulfillment services. This is probably due to the nature of the facilities offered by them to their clients.

The extent of their services: A fulfillment center can easily provoke the benefits of a 3rd party logistics unit. However, the 3PLs cannot offer all the services similar to the order fulfillment services as their extent is more localized and less widespread than the latter.