Tired of spending your precious time adjusting orders, packing products, and then scheduling time around your busy schedule to drop your products off at the post office, FedEx or UPS? Whether you are a larger, mid-size or small retail ecommerce store the advantages of working with a 3pl fulfillment partner are paramount. If you want to gain more time back in your day so you can focus on your business read the below as we lay out the top 6 benefits of partnering with a 3pl.
1. Cost Savings tips
Have you ever calculated how much your time is worth when you pick, pack, and ship your own products? If the answer is more than you would like to admit, it may be time to consider partnering with a 3PL fulfillment company. By outsourcing your fulfillment operations to a third-party logistics provider like Badger Fulfillment, you can enjoy significant cost savings in multiple ways.
One of the most obvious ways that 3PL fulfillment companies can save you money is through cheaper shipping costs. They can leverage their relationships with carriers to negotiate discounted and customized pricing, which you may not be able to access on your own. This can lead to significant savings on shipping expenses, which can directly impact your bottom line.
2. Carrier Capacity
Carrier capacity is an important factor to consider when it comes to shipping and logistics. As an entrepreneur or business owner who regularly ships packages, finding a fulfillment partner that offers a large carrier capacity can have significant benefits for your business.
A 3PL (third-party logistics) provider with a large carrier capacity can help you save money on shipping costs by leveraging the volume discounts that come with shipping a large number of packages. When multiple carriers are used, the total number of packages shipped increases, which can result in lower shipping rates for the entire pool of carriers.
Additionally, having access to multiple carriers allows your 3PL to find the most efficient and cost-effective shipping solution for each individual shipment. This flexibility can help you save money by ensuring that you are always using the most cost-effective carrier for each shipment, rather than being locked into a single carrier with higher rates.
3. Scalability for E-commerce Shops
Scalability is a crucial factor in inventory management and warehousing, as it allows businesses to adjust their operations to match their current needs. Whether you are experiencing a busy season or a slowdown in sales, it’s essential to have a fulfillment partner that can accommodate your changing inventory requirements. That’s where a 3PL fulfillment company like Badger Fulfillment comes in.
At Badger Fulfillment, we understand that businesses have fluctuating inventory needs, and we have the scalability to handle them all. Our state-of-the-art facilities and technology allow us to scale up or down depending on your company’s size, scope, or activity level. Whether you’re a small business just starting out or a larger company experiencing a busy season, we can help you manage your inventory effectively.
4. Service Improvements
Improving services is crucial for any business looking to boost customer satisfaction and loyalty. Partnering with a 3PL fulfillment company that prioritizes service excellence and continuous improvement is a great way to achieve this goal.
By working with a reliable 3PL provider, you can expect a range of service improvements that can benefit your business. For instance, a trustworthy 3PL will stand by their guarantees and promises, such as timely and accurate shipping, right-sized packaging, and eco-friendly packaging solutions. This can improve your reputation with customers who value sustainability and prompt delivery times.
5. Technology
If you have ever had a quick change to an order that was already being picked, packed and shipped, then you understand the urgency to pass along the updated order information and hope it is done in time or you just do it yourself for the fear of something not being picked and packaged properly, then its time to invest in a 3PL fulfillment company that can quickly and easily integrate into your e-commerce shop. With real time order updates Badger Fulfillment is able to integrate into the largest e-commerce marketplaces available.
6. 3PL Industry Expertise
Outsourcing fulfillment to a 3PL provider is a smart move for businesses that want to streamline their operations and focus on growth. By partnering with a reliable 3PL, you can tap into their industry expertise and gain valuable insights into all aspects of the fulfillment process.
A top-notch 3PL provider will have a deep understanding of shipping rates, delivery zones, warehousing best practices, and bundling strategies. They can help you optimize your shipping strategy to reduce costs and improve delivery times, while also ensuring that your inventory is stored and managed efficiently.
3PL fulfillment providers offer a lot of benefits to ecommerce businesses that are looking to scale. Perhaps the most important benefit is the cost savings 3PL providers can offer. 3pl providers have access to heavily discounted shipping rates due to the volume of parcels they ship. In addition, 3PL providers are experts in their field and can offer guidance on how to best integrate their services with your existing ecommerce system for seamless order fulfillment. 3PL providers also have the ability to grow with your business as your fulfillment needs increase – something that is essential for businesses that are looking to scale quickly. If you’re looking for a 3PL provider that can offer all these benefits and more, then contact us today. We would be happy to discuss how we can help you save time and money while fulfilling orders.
FAQs
How do I choose the right 3PL for my business?
To choose the right 3PL, assess their expertise in your industry, scalability options, technology capabilities, and customer service reputation. It’s important to ensure that their services align with your logistics needs, budget, and long-term business goals.
When is the best time to implement a 3PL?
The best time to start with a 3PL is when your business experiences rapid growth that strains in-house operations. Signs include difficulties meeting demand, high shipping costs, or the need for faster delivery times. Partnering with a 3PL can help manage volume and improve logistics efficiency.
What is the typical cost structure for 3PL services?
3PL costs can vary but typically include storage fees, order fulfillment fees, transportation costs, and possible additional charges for custom services or returns handling. Understanding their fee structure and any hidden costs is crucial to budgeting effectively.
How do 3PLs handle returns management?
Many 3PLs provide reverse logistics services, which handle returned items efficiently by inspecting, restocking, or disposing of products as needed. A robust returns process helps maintain customer satisfaction and streamline operations.
How does my inventory stay separate from other businesses?
3PL costs can vary but typically include storage fees, order fulfillment fees, transportation costs, and possible additional charges for custom services or returns handling. Understanding their fee structure and any hidden costs is crucial to budgeting effectively.
How does 3PL warehouse management software work?
3PL WMS automates and manages the flow of inventory, tracking every step from receiving to order fulfillment. It uses barcoding, RFID scanning, and digital records to ensure real-time inventory updates, accurate order picking, and efficient stock management.
How does a 3PL impact customer satisfaction?
A reliable 3PL can significantly boost customer satisfaction by ensuring accurate, timely order fulfillment, real-time tracking, and quick problem resolution. This enhances the customer experience, reduces complaints, and fosters loyalty.
How does a 3PL differentiate itself from its competitors?
A 3PL differentiates itself through exceptional service, advanced technology integration, specialized industry knowledge, and customizable solutions. Offering unique features like real-time tracking, sustainability initiatives, and a strong network of partners can also set it apart.
