Feb 3, 2023 | Blog, Fulfillment, Warehouse Management Software
What is Kitting?
Packing multiple products under one SKU is known as kitting. Basically, kitting is combining two or more related items into one neat package. No need for customers to browse through multiple options – kitted bundles make getting what you want effortless!
Kitting Services Meaning
Kitting services are one-way businesses can streamline their operations: outsourcing kitting to a third-party fulfillment company helps keep costs down for retailers and their customers when it comes to final product fulfillment – you get what you need with no unnecessary packages!
Kitting services also come in handy in manufacturing; instead of struggling with in-house assembly, the retailer can trust that a third party is putting everything together. Kitting services give businesses breathing room too, so they don’t have to waste precious time assembling products and can focus on selling more products instead.
Examples of Kitting
Packaged-ready-to-order sets are great for those looking to add convenience and speed of delivery to their shopping experience. Examples of kitting include buying pre-made gift baskets, 10-piece kitchenware bundles, or a 5-pack of your favorite T-shirts in assorted colors. So, rather than searching through individual items, customers can find exactly what they’re looking for.
Subscription boxes are the best of both worlds. Customers enjoy their favorite products without lifting a finger, and businesses get trustworthy customers who keep coming back for more. Examples of subscription kitting can range from sports drinks, supplements, and coffee, to beauty products–and most anything that you need on a recurring basis.
Assembled products in kitting are a powerful tool for streamlining operations in the manufacturing and wholesale world. Instead of having customers guess at the best combination or shopping for individual pieces, you can offer a build-to-order or create-to-order process that lets them start from a blank slate.
Benefits of Kitting
Here are some tried and true benefits of kitting for both retailers and customers alike.
Reduce Fulfillment Costs
Kitting and bundling product orders together reduce fulfillment costs – it’s the new way to save time and money. Instead of selling and fulfilling every item one by one, organizing them as an all-in-one package with benefits like faster shipping times and fewer materials used is a simple (and often overlooked) way to reduce overall expenses.
Provide Value
Getting people on board with your newest product can be a real challenge. A great way to convince hesitant customers and demonstrate the worth of a product? Kitting! This promotional tool helps ensure no one misses out on the greatness you’re offering while also helping prove that the product is valuable. Who wouldn’t want to try something in a cool kit – especially when it includes items they already love?
Increase AOV
It’s no surprise that customers love to get the most bang for their buck, kitting creates the perfect opportunity to take advantage of that. Stacking items together allows you to provide attractive packages that deliver a higher-order value without loss of quality – and if there is one thing everyone loves more than savings, it’s convenience. Customers won’t even blink an eye at spending more for bundles when it means they don’t have to find the right combination individually or go to the store.
Clean Up Inventory
Suppose you’re looking for an easy way to eliminate products that have taken up space in your inventory; opt for putting together a kit or bundle. Saying goodbye to those items doesn’t have to be a headache. In fact, it can quickly help you turn over your inventory when you mix and match the items with more popular complementary products. A cleverly packaged kit is a great way to move more products and free up space for new arrivals.
Holiday Shopping
Shopping doesn’t have to be a chore for your customers; kitting can make it much more enjoyable! Customers don’t need to break out their detective skills to create the perfect gift; instead, they need the simplicity of picking a tailored kit. It’s an excellent way for shoppers to simplify their shopping journey during the busy holiday season – time saved, money saved, and no decision fatigue!
Warehouse Kitting Process
Kitting products in a warehouse may seem intimidating, but with the proper planning, it doesn’t have to be. Done right, warehouse kitting is a surefire way to save costs and improve quality control.
- Collect individual items: Since multiple items are combined into one SKU, the warehouse team must pick individual items before packing begins, organizing them all at a staging area.
- Package all items: The individual items should be scanned and placed in the same box or as few boxes as possible.
- Create a new SKU: Once the box has been packed with individual components, make it a single SKU and add it to your inventory system.
- Scan and ship: Place shipping labels and any other labels necessary on the packaging and send them off. Remember to inform your customer that their order has shipped.
Warehouse management software (WMS) with kitting rules can automate this process. ShipHero not only provides kitting in our fulfillment, but we’re also an excellent resource for kitting advice.
Kitting Services From A 3PL
Many third-party logistics (3PL) companies know the ins and outs of kitting and can provide an efficient solution that ensures accurate kitting and fast delivery. With their help, you can wow customers with your speed and dependability.
ShipHero’s WMS and outsourced fulfillment solutions make kitting (and its perks) simple to access. With kitting, you’ll get all the benefits without lifting a finger. Alex Lewkowict, Founder of Black Wolf Nation and ONE23 Fulfillment, says it best: “The rate shopping alone will pay for the software. Add in the bulk shipping and kitting, and {Black Wolf Nation and ONE23 Fulfillment} are so much more efficient.”
The Future of Personalized Fulfillment
Kitting is the perfect way to skyrocket your business’s efficiency and appeal to customers, all while building bonds with them and creating unforgettable products. By utilizing kitting services, businesses can stay ahead of the competition in the ever-changing buying landscape. Kitting adds a unique, personalized touch to your products, making them stand out among the rest. Grab hold of this opportunity to make more money off of each and every sale and start providing the ultimate customer experience you always envisioned while running your business. To keep up with more innovative ways to build your business, subscribe to our blog!
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Maggie M. Barnett, Esq. COO of ShipHero – Author
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
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Kitting FAQs
What is kitting in a warehouse?
Kitting consists of packaging items together into a single new product with its own SKU, which is then sold as a single new item.
What is a kitting process?
Grouping related items into a single product offering is the first step in the kitting process. After the items are organized in the warehouse, they can be quickly packed and shipped to customers. Kitting can also be outsourced to companies that pick, pack, and ship the items.
What does kitting mean in logistics?
Using kitting in logistics, products are bundled together and delivered as a single unit.
What is the purpose of kitting?
Kitting can boost sales and increase efficiency. Pairing it with more trendy items will help businesses move less-popular merchandise. In addition, the price per item is usually lower, which creates value for customers. So, kitting can increase revenue and profit while increasing customer satisfaction.
Jan 27, 2023 | 3PL Warehouse Management, Blog
Are you looking for a way to simplify your eCommerce shipping and logistics? If so, consider using a Canadian third-party logistics (3PL) provider. This is a perfect option, whether expanding into the Canadian market or trying to find a better fulfillment solution. With all the benefits of working with a 3PL in Canada – from improved customer experience to reduced transit times – you’ll wonder why you didn’t jump on board sooner. Keep reading as we explore why you should use a Canadian 3PL!
What is a Canadian 3PL?
If you’re an eCommerce seller, you know what it’s like to be stuck with mountains of orders and need somewhere to put them before sending them. This is where a 3PL partner with prime warehouse space comes into play: allowing businesses to store their products in arrival-ready spots and quickly get them off to customers.
But what exactly is a 3PL? It stands for third-party logistics, companies specializing in taking care of the logistics needs of businesses related to freight shipping, distribution, and warehousing. On top of this, 3PLs should have integrations with top eCommerce platforms to collaborate on order fulfillment. Plus, they also need partnerships with mail carriers like Canada Post to ensure that products can be shipped safely from one destination to another — something any successful business will want assurance on.
For more information about 3PLs, read our blog, The Ultimate Guide to Third-Party Logistics.
Why Would You Need a Canadian 3PL?
With Canadian eCommerce fulfillment, expanding your market share couldn’t be easier. Canadian 3PLs specialize in handling eCommerce fulfillment projects – so why waste time trying to figure out Canadian customs when you have a Canadian 3PL expert ready to do it for you? They will not only make sure to guide you through all Canadian tax legalities, but they’ll also ensure that your goods are shipped quickly, securely, and cost-effectively.
What Do They Do for eCommerce Businesses?
Canadian 3PLs have emerged as a critical partner for eCommerce businesses looking to expand their operations. Canadian-based logistics providers are taking the lead in getting goods shipped quickly and cost-effectively, regardless of where inventory is sourced. With Canadian 3PL services, businesses can feel confident that their products or services will move from supplier to consumer with speed and agility.
But Canadian 3PLs offer more than just fast delivery—they can also help companies find the right balance between location and labor. By choosing the right industrial real estate properties, Canadian 3PLs have access to quality employment opportunities and hyperlocal amenities that help create an efficient supply chain. It’s all part of creating a winning strategy on the digital shelf!
Benefits of Using a Canadian 3PL For Your eCommerce Logistics Needs
Canadian 3PLs can offer your eCommerce business many logistics services you won’t find with other companies. For instance, Canadian 3PLs bring the invaluable benefit of experience with Canadian regulations, so you won’t have to worry about surprises. Plus, they can provide customs clearance and brokerage services; in other words, they take care of all the paperwork for you!
Canadian 3PLs also offer unbeatable convenience—they can pick up goods at induction points across Canada and provide an uninterrupted transition from start to finish. As a bonus, Canadian 3PLs let business owners get in on Section 321, which enables duty reimbursement or duty deferral for goods crossing the Canadian-American border. (Restrictions apply. Visit our Section 321 page for more information.)
Questions to Ask Potential Canadian 3PL Providers
- Are the goods picked up in the U.S. by the third-party logistics provider and delivered to their Canadian warehouse/DC or to the customer in Canada?
- Does the 3PL offer guaranteed direct service with a specific date?
- Is there a way to track every order with the logistics provider?
- Is the 3PL able to provide pick-and-pack services?
- Is the 3PL well versed in sales taxes and duties?
- Does the company offer last-mile delivery? White glove services?
- Are there many warehouses across Canada owned and operated by the 3PL?
- Do they have easy access to major population centers?
- Can you access your inventory, orders, shipments, and operations via a web portal 24/7?
- What kind of technology does the provider use? Integration-capable enterprise software is preferred.
Not All Canadian 3PLs Are Created Equal
Retailers have to navigate a constantly changing landscape, making it no surprise that 3PLs have become such a hot commodity. Most retailers understand the importance of finding the right Canadian 3PL provider that can help keep up with their eCommerce needs. But not all Canadian 3PLs are created equal: some offer comprehensive services like website hosting and mobile commerce enablement, while other Canadian 3PLs may provide basic warehousing and order fulfillment. To ensure you’re getting the perfect 3PL for the job, it’s important to take your time and do your homework. Analyze reviews, get reference reports, and be sure you’ve found a Canadian 3PL with all the bells and whistles you need for success.
Did You Know ShipHero is Also a Canadian 3PL?
Business owners around the nation can breathe a sigh of relief, ShipHero is one of the top Canadian 3PLs. Everybody has access to their fast and cost-saving Canadian warehouse locations thanks to their presence in Canadian cities such as Toronto and Vancouver, plus access to Calgary, Ottawa, Montreal, and Quebec City (to name a few). Canadian businesses can now receive up to a 20% reduction on all shipments annually – allowing them to save money and pass those savings along to their customers! So if you’re a Canadian business looking for top-notch shipping options – look no further than the Canadian experts at ShipHero.
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Click HERE to Schedule a Meeting Today
About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.
Follow Maggie on Twitter & LinkedIn.
Jan 20, 2023 | 3PL Warehouse Management, Blog, Fulfillment
If you’re about to take your eCommerce business to the next level, selecting the right 3PL (Third-Party Logistics) partner is an essential success factor. Not only do they help manage your day-to-day operations and fulfillment but having a reliable 3PL can also streamline customer service, reduce costs, and drive growth. We’ll outline key considerations so you can confidently choose a 3PL that meets all your unique needs!
3PL Partner Meaning
3PLs are the real MVPs of eCommerce. By leveraging 3PLs, merchants can offload a sizable portion of their supply chain management and never worry about fulfilling orders on time. With 3PLs handling everything from warehousing to order fulfillment and shipping coordination to retail distribution, exchanges, and returns, merchants can sit back and let their 3PL do all the heavy lifting. In the end, 3PL partners mean more time for merchants to focus on other areas of their business rather than managing their own warehouses or logistics.
How to Choose a 3PL Provider
3PL has revolutionized eCommerce, allowing businesses to choose the right 3PL partner and focus on maximizing sales rather than worrying about supply chain management. If you’re considering a 3PL partner for your business, be sure to weigh these factors on how to choose a 3PL provider that’s right for you!
Flexible and Feature-Rich Integrations
When you’re on the hunt for a 3PL, how do you decide which provider is the right fit? Capability is key: if your third-party provider doesn’t have the capacity and expertise to cover all your bases, from fulfillment services and reverse logistics to subscription box solutions, you may be in for a bumpy ride. Keep an eye peeled for providers offering flexibility and feature-rich integrations with your eCommerce platform – that way, as consumer demand continues to skyrocket, you can rest assured knowing you’ve picked a partner able to roll with the punches. With capability and scalability in spades, there won’t be any supply chain kinks that they can’t help you iron out!
Adapting to a Changing Market
When it comes to stability in the logistics industry, you deserve the best. That’s why it pays to look for a 3PL with a track record of adapting to a changing market – ensuring your business that potential innovations won’t rock their stability down the line. Plus, multiple locations allowing for shorter shipping times and increased national reach is a bonus – so you can have confidence that your supply chain needs are taken care of! An esteemed reputation for providing top-notch service is worth considering when it comes to peace of mind.
Communication and Trust
How do you ensure your 3PL has the best reputation around? Find a partner that knows the importance of making connections! It’s not just about happy customers – it’s about happy vendors, carriers, and employees. A great 3PL will take the time to understand your business needs, so communication is key here – make sure they take their engagement levels seriously and bring in their expertise. With a compatible culture and shared values, you can be sure they’ll exceed expectations every step of the way.
Safety First
When it comes to safety, what you should look for in a 3PL is the same thing you’d do when checking the brakes on a cart: check twice and confirm. Spot-check that your 3PL has the most up-to-date PCI, FDA, and DEA certifications and a HAZMAT Shipping Certification. After all, safety first!
Top-Tier Customer Experiences
With a third-party logistics provider, customer service and attention to detail often make or break the relationship. The good news is that experienced 3PLs will rise to the occasion to provide business solutions that leave you nodding your head in approval, like how easy it is to calculate savings and track delivery times. Plus, with omnichannel retail taking over the market, you’ll want to find a partner that knows how to navigate through these complexities and provide top-tier customer experiences. Look for someone with an impressive track record, a reusable approach, and expertise in handling similar operations.
Scale Without Breaking a Sweat
If you’re feeling cramped and think it might be time to upgrade your operations, outsourcing is an ideal option. You only need the perfect third-party logistics provider who can make scaling up a breeze. Your provider can help you address peak demand without investing in physical infrastructure and personnel. Don’t forget to ask them one crucial question: “What’s the maximum amount of scalability you offer?” That way, you’ll know just how easily they can pick, pack, and ship your goods should demand suddenly skyrocket.
Customized Solutions
Third-party logistics can help your business stand out by providing customized solutions tailored to your unique needs. Each provider will offer a unique blend of software integrations, postponement strategies, and tailored production techniques – so make sure you work with an experienced 3PL who can leverage these things. Once you kick off the process, you’ll be able to tap into cost savings while still providing excellent service.
Accuracy is Everything
When it comes to 3PL providers, there’s no room for inaccuracy. If your 3PL can’t keep its inventory and orders accurate, you’re in for a world of customer disappointment and not-so-fun losses. Make sure the 3PL partner you pick employs a robust Warehouse Management System that keeps order and inventory accuracy levels high. It’s worth all the effort to find the right provider because, in this business, accuracy is everything!
Respond Quickly and Effectively
Responding quickly and effectively when issues come up is a key factor of success for any company or individual. It can be the difference between a smooth-running operation and one that consistently trips up on large and small snags. Since no one can predict the future, understanding the importance of being responsive helps ensure that whatever comes your way is addressed in an efficient and timely fashion. Don’t leave your customers hanging – make responsiveness a priority! After all, how would you feel if you were constantly waiting around for answers?
Enterprise-Level Technology
In this ever-changing technological era, how do you choose the right 3PL provider for your business? Well, it’s simple: get yourself one that provides enterprise-level tech. Nothing says ‘sophistication’ quite like having a streamlined order-to-delivery process – and that’s exactly what advanced technology solutions can give you. And while you might not require such complex systems now, who knows how future-proof you’ll want your business to be in the near future? So don’t take any risks – ensure your 3PL has robust technology from the get-go!
How Much is a 3PL?
You don’t have to worry about how much a 3PL costs; in fact – it could save you money! Bulk ordering from the same vendor can save your bottom line with discounted rates. And who knows, if you’re persuasive enough, you might even command better terms for yourself. You won’t need to invest in warehousing and haulage tech, labor costs, and the like – 3PLs can do everything for you. That means no more spending money on expensive mistakes and worrying about how to handle logistics without help.
Powering the Best 3PLs in the Business
Taking your eCommerce business to the next level is no small feat and choosing your 3PL partner can be a make-or-break factor. Your 3PL can help you manage operations, streamline customer service, reduce costs, and drive growth, but how do you know they’re right for you? Well, that’s where due diligence comes in. Weigh out all the options mentioned in this blog, and don’t settle until you find one with enough experience and savvy to fuel your eCommerce rocket ship. When it comes to WMS, ShipHero has the goods. So, if ShipHero WMS powers your 3PL, rest assured that your business will be on its way to success in no time!
So, there you have it! If you want to learn more about all things 3PL, check out our guide here, which dives deeper into this fascinating world! These are just a few reasons why choosing the right 3PL is essential to your business success.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.
Click HERE to Schedule a Meeting.
Jan 13, 2023 | 3PL Warehouse Management, Best Practices, Blog, Inventory, Warehouse Operations
Ready or not, the future of 3PLs is here! Companies are constantly seeking strategies to optimize workflow and ensure their goods get to customers quickly and efficiently. To stay competitive in this ever-evolving landscape and remain successful, 3PL providers must embrace new technologies, stay organized, and boost efficiency. In this blog post, we’ll explore the future of 3PLs and discuss strategies for getting organized and becoming more efficient.
Why 3PL Efficiency and Organization is Important
3PL organization can be tricky, but it’s essential for operating at peak efficiency. Not only is there the challenge of keeping up with daily tasks and staying organized in the present, but 3PL centers must also look to the future and plan accordingly.
Establishing an efficient 3PL organization structure will enable your operation to remain competitive for years. Implementing organizational solutions like strategic product grouping, ergonomic layouts, and optimized replenishment cycles are all examples of what 3PL companies should use when creating a successful warehouse system now and in the future.
Creating a More Organized Warehouse
If 3PL organizations want to optimize their existing warehouse space, creating a more organized facility is the key. It starts with ensuring inventory is accurate for better visibility and then investing in 3PL warehouse management software for improved automation and 3PL billing software for efficient payments.
Then, you can reach new heights through vertical space utilization with stackable pallets that take up less space. Visual aids are like mini cheat sheets that make picking easier, so take advantage of that. Finally, don’t forget the power of cleanliness—keep your 3PL facility neat and tidy for a painless experience at every step.
Ways To Boost 3PL Efficiency
Maximizing warehouse efficiency is vital, but it requires the proper organization to make the necessary improvements within your warehouse management software and overall procedures. If done correctly, these steps could help your 3PL organization save time and money and allow a competitive edge in the market.
With so much opportunity in modernizing warehouses, 3PL organizations should carefully consider automation to improve efficiency and reduce worker efforts for maximum output success. Moreover, 3PL organizations should always consider the return on investment (ROI) when evaluating costs associated with investing in technology and integrating lean best practices into their operations.
In short, improving efficiency may seem expensive at first glance; however, by prioritizing significant investments over minor ones, 3PLs can genuinely reap the benefits of their improved warehouse productivity.
Benefits of Warehouse Efficiency
Warehouse efficiency can be the key to success for 3PLs, leading to the following:
- Increased customer retention
- Improved operations
- Reduced staffing needs
- Better flexibility
- Greater resiliency
A 3PL organization’s success may be rooted in the soil of warehouse efficiency. With a well-oiled operation, they can provide remarkable logistical services while enjoying all of the abovementioned benefits.
How a WMS Can Help Make 3PLs More Efficient
3PLs have enough going on without constantly worrying over disorganized 3PL services – that’s where warehouse management software (WMS) comes in. Put your 3PL organization to the test with a seamless, integrated platform that clients can customize to each customer’s needs; no getting lost in the sauce trying to make sense of chaotic processes when you implement WMS.
Cross-docking and advanced tracking capabilities mean 3PLs don’t have to worry about time-consuming, tedious tasks. They can keep all their 3PL services running smoothly, saving them from missteps or costly delays.
Increase Efficiency in Your Warehouse Today
3PLs must be ready – because technology isn’t standing still. In an increasingly fast-paced and competitive world, 3PL providers must stay ahead by embracing new technologies and getting organized with efficiency-boosting strategies.
Luckily, there are several ways to boost efficiency in your warehouse. You can increase organization and efficiency with a warehouse management system and proper use of warehouse space. After all, since 3PL operations are responsible for such an essential role in many businesses’ success, you must keep up with the times and stay ready for whatever comes next.
If you’re looking for ways to make your operation run smoother, try ShipHero’s Warehouse Management Software today! And remember – an efficient 3PL is a happy 3PL.
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About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs.
Stay informed about everything in third-party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.
Jan 6, 2023 | 3PL Warehouse Management, Best Practices, Blog
Are you feeling overwhelmed as your eCommerce business grows? Can’t quite keep up with the demand but don’t have the capital to invest in a massive supply chain infrastructure of your own? You don’t need to. With a 3PL (third party logistics), you can access sophisticated systems, warehouses, and transportation networks that provide unmatched customer service and cost savings. In this blog post, we’ll explore how tapping into 3PL infrastructure may be just what’s needed for growing eCommerce businesses to weather even the stormiest market.
What is Third Party Logistics?
3PL warehouses provide businesses with access to infrastructure and technologies they wouldn’t be able to obtain on their own, enabling them to reduce friction and deliver value efficiently to customers. 3PL companies have become invaluable tools for eCommerce businesses by expertly handling inventory management, warehousing, order fulfillment, and other logistics services. 3PLs are undoubtedly revolutionizing the world of eCommerce — it’s no surprise that 3PLs are the way of the future when it comes to optimizing supply chain processes for maximum efficiency.
When Do Businesses Need a 3PL provider?
If you’ve never seen the impact of third-party logistics providers, you may be under the impression that it’s an expense you can do without. But trust us when we say that it pays off a lot more than doing all your fulfillment in-house! 3PL companies can help merchants – from small businesses to eCommerce empires – with their scalability needs. When faced with unforeseen order growth or a spike in customer demand, working with a third party warehouse and its services can save you time and money in the long run. After all, nothing’s worse for your brand than breaking promises to customers, especially in an era when 60% of global consumers expect same-day or two-day delivery.
How 3PLs Bring Technology to Infrastructure
3PLs have come a long way since the days of organizing physical products in dusty warehouses – they’ve brought technology to infrastructure! Online merchants are all too aware that keeping up with the big retailers means implementing advanced 3PL tech, such as their warehouse management system (WMS). A WMS allows 3PLs to connect data from various sources, enabling end-to-end visibility into every single order. Wherever you send it, you can track it! So what exactly does this mean? In short, online merchants can more easily compete with larger retailers by turning to technology-enabled 3PLs for services.
- Automating the 3PL Automating the 3PL process isn’t just for robots, it’s for people too! By automating processes, businesses can save precious time and effort. Ordering and tracking become an effortless breeze. With real-time updates in your online store, warehouse staff is updated on orders as soon as they’re placed. Furthermore, various parameters allow you to quickly search and find exactly what you need. And that’s not all – fulfillment software also ensures optimal inventory management, so reordering is quick and efficient. Automation leads to reduced delivery times so customers can receive their packages faster.
- Data Moves Freight Whether it’s to shave off delivery time or reduce inventory costs, data can help get freight moving in the right direction. Fulfillment software can use past data to ensure you’re sending your products to the best possible locations. No more guesswork! With built-in metrics focusing on peak times, revenue, by channel, and quantity orders by USPS zone, you’ll have unbeatable insight to optimize your supply chain. Plus, data logs only get more accurate as time goes on and you gather increasing amounts of order history – it’s a win-win!
- Reduce Errors 3PL technology is here to make our lives easier, especially when reducing errors in order fulfillment. By automating the shipping process with connected technologies, 3PL infrastructures eliminate duplicated work and human error that can cost customers time, money, and an overall bad experience. What’s more, 3PL technology offers insight into the 3PLs performance with complex data like accuracy levels and delivery timelines that demonstrate how orders are being handled every step of the way.
- Meet Customer Expectations Customers today expect lightning-fast delivery within the same day or two days, which can only be achieved if the right technology is in place. That’s where a tech-enabled 3PL comes in; they can help you optimize your storage and shipping to meet customer expectations. With their system, your inventory will be distributed to warehouses closest to your customers. Each time an order is placed, algorithms select the courier providing an efficient, cost-effective solution.
How to Tap into 3PL Infrastructure
Partnering with 3PL services can help give you a leg-up in today’s competitive world, but it’s essential to be sure the 3PL infrastructure can keep up with your business growth. Before signing on, evaluate the 3PL’s existing logistics operations—are they set up to store, pack, and efficiently pick orders while accommodating a rise in inventory? Additionally, ask about the cost and if any steep start-up fees come into play. While upfront costs may seem high, future savings may be unlocked when you consider what is included in the quote – from less overhead to lower labor costs down the line. Ask your 3PL vendor what reporting capabilities they offer; this allows you to track areas such as order accuracy and timeliness of deliveries, along with any potential risks or liabilities associated with broken or lost items. You’ll also want to confirm that 3PL integrates well with your existing inventory, order management, and warehouse management software for a smooth transition into 3PL services. Are you looking for warehouse software that works for 3PLs? ShipHero’s warehouse management system comes with integrations plus real-time reporting, the perfect combo for staying ahead of the future of your business!
Third Party Logistics Advantages and Disadvantages
The 3PL infrastructure, which is tailor-made for the e-commerce industry, makes it easy for small to medium-sized businesses to launch their products worldwide and scale up their operations on demand. However, 3PL isn’t entirely sunshine and rainbows – there can be hiccups ranging from extra fees to lags in shipping standards. As always, it’s important to weigh the advantages and disadvantages of 3PL in your decision-making process before investing time and energy into outsourcing logistics.
Advantages:
1. Better Shipping Rates
When many brands join forces and leverage the volume of their orders, they can negotiate better rates from carriers. That’s why 3PL providers are so great: You may be small in number alone, but together you’ll get heard loud and clear for discounted prices that lead to greater profits per order.
2. Decreased Shipping Time
So how do you compete with Amazon Prime to get packages to customers? Building tons of warehouses across the country might be expensive, but you can hit that two-day mark without breaking the bank by using a 3PL.
3. Real-time Transparency
Real-time transparency gives brands the advantage of being in direct control: accurately stocked shelves and order status updates that come lightning fast. With paperless warehouse operations and Tier 1 WMS data at your fingertips, you can keep a refreshed eye on every detail – from macro to micro!
4. Strategic Partnership Networks
Instead of relying on a go-it-alone approach, tap into 3PLs strategic partnership networks to get your hands on solutions specifically made for you. From integrated tools and offers to highly customized experiences—you can make it happen with these trusted partners!
Disadvantages:
1. Upfront Investment
It’s clear that when it comes to 3PL providers, there’s no free ride – you’ll have to pay the piper for setup costs such as software integration, SKU uploads, and account access.
2. Hours or Workflow
Instead of packing your orders, wouldn’t it be nice to have a third party do the job for you? But beware – working with 3PLs means relying on their hours and workflow. It’s best to plan ahead when engaging such services, as any disruption could lead to hiccups in delivering your goods.
3. Finding a 3PL You Can Trust
Choosing the right 3PL partner isn’t just about getting a good deal – although that doesn’t hurt. You’ll have to put in some homework and carefully vet reviews, size, reach, and service offerings before you can confidently shake hands with your ideal 3PL provider!
ShipHero is a Shopify Third Party Logistics Partner!
ShipHero, with 3PL infrastructure and software that seamlessly integrate with Shopify and Returnly (to name a few), is undoubtedly a 3PL partner you’ll want to know about. With ShipHero’s one-stop shop for 3PL services, you can rest easy knowing that your inventory will always be on track. And saving money? That’s a no-brainer! Thanks to real-time ship rate shopping and built-in reporting features that cover COGS, picker/packer efficiency, replenishment, and more… we might be the best 3PL for Shopify you have ever tried!
3PLs: The Backbone of Supply Chain Management
3PLs are often the unsung heroes of a shipper’s operations, providing an invaluable infrastructure to help them track inventory, orders, and logistics with greater precision and certainty. Their solutions offer robust analytics, machine learning capabilities, and automated toolings for pricing, booking, and documentation, allowing shippers to make better decisions backed by fact-based data quickly. Despite the apparent advantages 3PLs present to businesses of all sizes, many fail to take advantage of 3PL tech solutions. As 3PLs have become essential in managing supply chains, it is time for shippers to reevaluate 3PL advantages and disadvantages and prioritize using their 3PL business relationships more effectively to stay one step ahead of their competition. 3PLs are the future of eCommerce. By tapping into their infrastructure, you can level up your customer service while saving money on warehousing and transportation. If you’re feeling overwhelmed as your business grows, consider using a 3PL to take some of the pressure off. At ShipHero, we can help you find the right 3PL for your needs and our software will manage everything for you so you can focus on running your business. Contact us today to learn more! —
About ShipHero: We make it simple for you to deliver your eCommerce. Our software helps you run your warehouse, and our outsourced shipping solutions eliminate the hassle of getting your products to your customers. With thousands of brands and 3PLs relying on us daily, we’re here to help with all your logistics needs. Stay informed about everything in third party logistics by following ShipHero on LinkedIn and subscribing to our newest blogs and updates.
