How fulfillment centers streamline process for online marketplaces

Whether your company’s just starting out or already established and successful, partnering with a third party logistics provider (3PL) creates more efficiency, reduces cost and allows your business to scale quickly. 

WHAT IS A 3PL?

A “3PL” allows a business to outsource operational logistics from warehousing to digital marketing services through delivery, enabling you to focus on marketing, product development and sales.

The responsibility of oversight and supply chain management is transferred to a 3PL, which optimizes business operations. Overall, it streamlines your business, providing a better customer experience and improves satisfaction.

 

A 3PL partner offers services that can include:

• Order fulfillment
• Warehousing
• Inventory management 
• Kitting and assembly
• Other related services

 

Revenue strategies such as offering 2-day shipping options are built into 3PLs to allow small businesses to compete with larger, more established e-commerce brands.

By default, fast shipping eliminates the need for increased spending on marketing, increases the average order value, reduces the cart abandonment rate and ultimately builds brand loyalty.

 

BENEFITS:

Efficiency: A 3PL streamlines the order fulfillment process by incorporating automation for orders, which includes picking, packing and shipping to customers. It can even include tracking and return processing. 

Mitigates risk: A 3PL is responsible for adjusting to unforeseen circumstances so shipping continues as smoothly as possible. In addition, businesses are protected in the event that goods are damaged or lost.

Reduced logistics cost: 3PLs store your inventory so you don’t have to spend money on warehouses while fulfillment experts are trained to keep logistics costs down. This reduces overhead on certifications, equipment, packaging, rent, and other things you’d otherwise be responsible for on your own. 3PLs also negotiate bulk discounts with major shipping carriers for better domestic and international rates.

Supply chain optimization: 3PLs are logistic experts because they use best practices and the newest technology to help your business grow and thrive. The best 3PLs also optimize the order fulfillment process by providing online store integration, access to data and analytics and inventory tracking.

Scaling: Most businesses fluctuate in sales throughout the year and partnering with a 3PL allows you to more effectively manage the ups and downs.

WHO’S USING A 3PL?

From small e-commerce shops to Fortune 500 companies, a 3PL should be versatile enough to grow with your business, providing a variety of services along the way.

 

Small companies: Between overspending on various operating costs, in-house startup fulfillment can be costly and time-consuming. For small businesses currently spending too much time and money on fulfillment and struggling to scale, a 3PL can provide all the services you need.

Medium-sized companies: Businesses that have grown can also benefit from a 3PL since they grow with you. Demand can be unpredictable and challenging during this stage of growth, which could result in order delays. This is where a 3PL can help you forecast demand, address order volume and split inventory strategically across various fulfillment centers.

Fortune 500 companies: Did you know that 90 percent of Fortune 500 companies use a 3PL, according to a 2018 logistics trend article bizjournals.com. That’s because many of them also have successful brick and mortar storefronts and need a 3PL to track inventory across multiple channels.

FULEX OFFERS NO PRODUCT DISCRIMINATION:

Whether you’re selling an individual product or a variety of them, Fulex offers industries with small to medium-size businesses access to technology, tools and services that larger companies have at an affordable price. If you’re considering your options in partnership with a 3PL, consider Fulex, we’re tailored to meet your business needs.