How can I select a 3pl company?
For you to select a 3pl company, First and foremost you should see that a 3pl company is providing facilities for the product you are selling.
- For example, if your business is into selling apparel, then you should search for a 3pl company which should have all the facilities needed for the product.
From storing to packaging to shipping, they should provide all the services concerning that product. Apart from that, for an ecommerce business, there are time constraints too to deliver a product, so for that, a 3pl company should have warehouses strategically placed to cover your target customers locations.
- Likewise, If you are into selling fragile products – furniture or Electronics goods, a 3pl company should have different storage facility related to that product, picking and packaging also need extra care as well as shipping of furniture or Electronic goods.
- As an ecommerce business, you also need Electronic data interchange (EDI) for the smooth communication between the 3pl company and your business.
- Lastly and most importantly, Reverse logistics. It is the crucial part of any ecommerce business; this somehow slows down the operations as well as adds an extra cost; a 3pl company must carry out this part efficiently.
Having all these points in mind – Start Searching!
What should I expect from a 3pl company?
You can expect the following things.
1. Cost and time reduction: When most of your inventory, shipping, and order fulfillment process is managed by a 3pl company, it will save a lot of your processing cost and time. A considerable amount of money and time is saved when you outsource your warehouse and transport facility.
2. Focus and flexibility: You can focus on your core business when all of your inventory, shipping, and order fulfillment process is managed by a 3pl company. 3pl companies have scalable warehouse and other facilities that benefit you when you are planning to expand your business at any point.
3. Reverse Logistics: It is the crucial part of any ecommerce business, this somehow slows down the operations as well as adds an extra cost to the business. Choose a 3pl company that carries out this part efficiently.
4. Industry Expertise: 3pl company has enormous experience of industry best practices, always keep them updated in new technology, which will an ecommerce business take an ample amount of time to gain.
5. Network: 3pl companies have ground knowledge of rules and regulations of the government of different countries, various markets, which comes to be the most practical and cost-effective in each step of your business.
When should I move to a 3pl company?
1. When you feel as an ecommerce business that you are not able to manage all the process, i.e., order fulfillment, shipping, inventory effectively.
2. When you need to scale up your business, which requires a lot of investment for storage, shipping then its time to hire a 3pl company. It not only gives you access to these resources at a minimal rate but also saves time.
3. When you are not able to focus on the core business, all other things like order fulfillment, inventory management, and shipping are taking up most of your attention.
4. 3pl companies have ground knowledge of rules and regulations of the government, markets, capacity constraints, which will an ecommerce business take an ample amount of time to gain.