3PL or third-party logistics is a part of the supply chain whose functions include storing manufacturers’ goods before they reach the consumers. They offer logistics services that cover the management of any procurement. A 3PL warehouse has to do with storage.
It is particularly essential for small-scale e-commerce businesses. These e-commerce businesses have managed to grow their operations by using the management and fulfillment services offered by these warehouses. When orders are placed and fulfilled, it makes customers happy, and your business runs smoothly.
Before you choose any 3PL warehouse to work with, you must properly understand how it works. This information helps you to know how to integrate their services into your operation. In this article, we’ll look at the processes and benefits of 3PL warehousing.
Processes Of 3PL Warehouse Operations
As an e-commerce business owner, here are some processes of a 3PL warehouse you need to get inclined to meet the expectations of your clients in time
- E-commerce platform Integration: Many e-commerce business owners primarily depend on multichannel selling. Your fulfillment warehouse needs a strong 1T for this to be possible because they’ll require seamless integration with multiple sales platforms. This strong IT should also enable you to view and track the progress of your orders online.
- Inventory Management: As an e-commerce business owner, working with third-party logistics companies provides you with 3PL warehouse services. Your account representative also applies the experiences he has gathered while working for other e-commerce business owners to help you manage your goods.
- Packaging And Shipping: Picking, packing, and shipping services are essential to fulfilling an order. After your customers have placed an order, the agents in the 3PL warehouse receive it, then source it and package it.
- Same-day Delivery: The agents in the 3PL warehouse provide same-day delivery services to your customers. The packing and shipping are done as soon as the orders are placed. The delivery is made depending on the distance from the warehouse.
- Returns: This is also known as reverse logistics. This is an inevitable part of e-commerce. The factors affecting returns are numerous, including the type of products you sell. Sized products like shoes and clothes have a higher level of reverse logistics.
Benefits Of 3PL Warehousing
- Reduction In Cost: When 3PL warehouse agents work with carriers for a lot of customers, they’ll be able to leverage better rates than individual shippers by using the frequency of their orders and their collective volume
- Mitigate risk: In the world of demand and supply, unforeseen circumstances are bound to occur. These 3PL warehouse agents are responsible for averting those delays and providing a quick alternative to the problem.
- Save Time: You can save a lot of time when you entrust your work it the hands of an expert. They shoulder all the workload that would have been a challenge in the past, thereby creating more time for you.
A good 3PL warehouse service provides you with every flexibility you need as an e-commerce business owner. When you decide to use these warehouses, you aren’t just hiring a service provider. You should know that you’ve now hired an extension of your operations.