Introduction

Ever wondered how businesses manage to get products from one place to another seamlessly? Well, one secret weapon in their arsenal is a 3PL. But what are the pros and cons of using a 3PL? In this blog, we’ll review what 3PL is, explore its advantages or “3PL pros,” and look at a few challenges it might bring.

So, let’s get started!

Understanding 3PLs

So, what’s a 3PL? It stands for Third-Party Logistics. Think of it like having a logistics superhero—outside experts who swoop in to handle all the nitty-gritty details of moving goods around. If you need the products you sell to be stored and sent off to customers, 3PLs can help a ton, which brings us to the next piece of the blog: 3PL pros. 

3PL Pros – The Good Stuff:

1. Cost Efficiency: Starting off strong, one of the top perks of 3PLs is cost savings. By outsourcing logistics to a 3PL provider, businesses can often trim down transportation, storage, and even technology expenses. So, you’re getting quality service without breaking the bank.

2. Focus on Core Competencies: Businesses can stick to what they do best while 3PL experts handle the logistics dance. This means more time and energy for designing excellent products, improving services, and growing the business overall.

3. Scalability: As a business grows, so do its logistics needs. 3PL providers can flex and adapt, accommodating changes in the volume of shipments or the complexity of operations. It’s like having a logistics partner that grows with you.

4. Global Reach: 3PL providers often have a vast network, making it easier for businesses to expand globally. They understand the ins and outs of international shipping, customs regulations, and all the global logistics puzzles.

5. Technology Boost: Many 3PL companies come armed with advanced technology. From real-time tracking to sophisticated inventory management systems, these tools bring efficiency and transparency to logistics.

3PL Cons – The Challenges:

Now, let’s discuss the other side of the coin. While 3PL offers many benefits, it also has its challenges.

1. Loss of Control: Entrusting logistics to a third party means giving up some control. This shift can be a bit nerve-wracking for businesses used to managing every detail.

2. Communication Hurdles: Collaborating with an external partner requires clear communication. Any misunderstandings or miscommunications can disrupt the supply chain.

3. Dependency Risks: Relying heavily on a 3PL provider might pose risks if facing financial instability or operational issues. Therefore, a hiccup on their end can ripple effect on your business.

4. Customization Limitations: Some businesses have unique needs that may not align perfectly with standard 3PL services. Customization options can be limited, requiring compromises.

5. Quality Control Concerns: When someone else handles your products, you always have concerns about maintaining the quality standards you’ve set. Ensuring that your 3PL partner shares your commitment to quality is crucial.

Though some of these challenges can be tricky, 3PL pros can provide much help and benefit in the long run. As always, deciding what works best for your business is up to you. 

Final Thoughts

In conclusion, a 3PL is like a double-edged sword—sharp and effective, but with some challenges to be mindful of. The pros, like cost efficiency, scalability, and global reach, make it a valuable asset for many businesses. Yet, the cons, such as loss of control and potential communication issues, highlight the need for careful consideration and strategic planning when venturing into the world of 3PLs. It’s all about finding the right balance to harness the power of logistics superheroes while keeping a watchful eye on potential challenges. Cool, right?

Introduction:

Ever wondered how stores, whether online or in-person, get all their stuff to sell? Well, that’s where B2B shipping comes in! In this blog, we’ll break down what B2B shipping is, how it works, which types of businesses find it super helpful, and why it matters to all of us.

Understanding B2B Shipping:

Alright, so B2B shipping is basically about businesses sending stuff to other businesses. Imagine it like a giant puzzle where different companies need to share and exchange things to keep everything running smoothly.

So, how does it work?

The B2B Shipping Flow:

Let’s dive into the process:

1. Order Placement: A business starts by telling another business what it needs. It’s like making a shopping list for the suppliers or manufacturers.

2. Logistics Planning: Once the order is made, businesses determine the best way to get the products, supplies, or materials from one place to another. They decide on the best trucks, trains, or planes to use and plan the route for speedy delivery, all while keeping cost in mind.

3. Packaging and Labeling: The products are ready for packaging and labeling after solving logistics. Labels help businesses keep track of products in transit so that those products get delivered quickly and accurately. Plus, stable and secure packaging ensures the safety of products in transit.

4. Transportation: The best form of transportation is decided based on what’s being sent and where. Plus, if the product is going to another country (or being sent internationally), there are extra rules to follow at customs.

5. Tracking and Visibility: Businesses use technology to see where their product is. This helps them make quick decisions if something unexpected happens.

6. Delivery and Receiving: Finally, the product arrives at the other business. Getting things on time and in good condition helps businesses trust each other and work together better.

Types of Businesses Best Fit for B2B Shipping:

Now, let’s talk about which businesses love using B2B shipping:

  1. Manufacturers: These are the folks making things, so they need a constant supply of materials to keep their machines humming.
  1. Distributors and Wholesalers: These businesses help spread products around. They send big batches of products to smaller stores so more people can buy them.
  1. E-commerce Platforms: These platforms use B2B shipping to bring products from big factories to your favorite online stores.
  1. Construction and Infrastructure: When big construction projects occur, businesses need many different materials. B2B shipping helps get everything to the construction site.
  1. Technology and Electronics: B2B shipping ensures all the parts of gadgets and technology get to the right places so companies can put them together and sell them.

Why B2B Shipping Matters:

B2B shipping isn’t just a behind-the-scenes process; it’s a big deal for shipping and logistics. It ensures that businesses can operate smoothly and create what we use daily. Whether it’s the phone you text with, the clothes you wear, or the buildings you see around town, B2B shipping plays a crucial role in making it all happen.

Final Thoughts:

In a nutshell, B2B shipping is like the glue that holds businesses together. It helps them get what they need, where they need it, so they can keep doing their best. Understanding this helps businesses be innovative about moving things around and shows us how the world works together to ensure we have the stuff we need and love. Cool, right?

Introduction

In the world of buying and selling, businesses are always looking for ways to make things easier and faster. One meaningful way they do this is by getting help from outside experts in moving and delivering things. These experts, also known as third-party shippers, do a crucial job in ensuring things get from where they’re made to where they need to go. In this blog post, we will learn about these outside helpers, what they do, and why they matter so much in today’s business world.

Understanding the Basics

A third-party shipper, or a third-party logistics (3PL) provider, is a group from outside a business that helps with various tasks. These tasks include moving products, storing products, and getting products sent and delivered to the right place. When a business hires these helpers, it can focus on what it’s best at while letting the Third-Party Shippers take care of the tricky parts.

The Dynamic Role of Third-Party Shippers

Moving Things Around

One big job for third-party shippers is figuring out the best way to move things, also known as transportation logistics. This means choosing the right way to transport products, talking to the shipping carriers, and ensuring everything gets where it needs to be on time. These outside Third Party Shippers know a lot about moving things, which helps businesses reach more places without worrying too much about the logistics of getting things there.

Storing and Sending Out Stuff

Having a good place to store products and sending them out quickly is essential. Third-party shippers have strategically located warehouses to store products. This makes it easier for businesses to keep their products close to those who want to buy them. Third-party shippers are also good at packing things up and sending them out fast.

Using Technology

In today’s world, using technology is a big part of making things work smoothly. Third-party shippers use cutting-edge technology to monitor where products are, manage how much stuff is in storage, and analyze data. This helps businesses make intelligent decisions, fix problems, and keep up with what’s happening in the market.

Benefits of Using Third-Party Shippers

Saving Money

Hiring third-party shippers saves businesses a lot of money. These helpers have many clients so that they can share their work costs. This means businesses get good service without spending too much on logistics.

Being Flexible and Scaling

Businesses experience fluctuations in demand and operational requirements. Sometimes they need more, and sometimes they need less. Third-party shippers are great because they can change how much help they give based on the business’s needs. They are very agile. This is helpful for businesses that grow quickly or only need extra help during certain times.

Focusing on Important Stuff

When businesses let third-party shippers handle moving things, they have more time and energy to focus on their strengths. They can spend more time making great products, marketing, and making customers happy, which improves the business’s overall performance.

Reaching People Everywhere

Selling things in different countries can be tricky, but third-party shippers know a lot about this. It’s their job to know the ins and outs of international selling so they can navigate it for their customers. They can help businesses sell their products in many places without worrying about complicated shipping rules and regulations, which is a big help for businesses that want to reach people worldwide.

Challenges and Things to Think About

While third-party shippers are helpful, businesses should consider some challenges when deciding to use them.

Giving Up a Little Control

Some businesses may feel nervous about letting someone else take care of essential things. It’s important to talk a lot with the third-party shippers and ensure everyone understands what needs to happen. This way, businesses can still have a say in how things are done.

Being Ready for Problems

Sometimes, things go differently than planned, like natural disasters or problems between countries. Businesses must work closely with third-party shippers to prepare for these. This way, they can fix any issues and keep things running smoothly.

Keeping Information Safe

Using technology to help move things is excellent, but businesses need to be sure that their information stays safe. They should pick third-party shippers who take good care of cybersecurity to ensure that no one gets their hands on essential data.

Choosing the Right Third-Party Shipper

With all the good and bad implications of choosing to outsource this part of your business, it can feel daunting and intimidating to choose a third-party shipper. Even more than that, how do you find a reliable, well-suited third-party shipper? Enter eHub! eHub has an extensive, highly vetted network of third-party shippers.

Working with eHub is insurance for your company when finding a good fit. eHub can analyze your business and make a sound, well-suited match between you and a third-party shipper. Reach out today to schedule a free call and see what eHub can do for you. 

Conclusion

Third-party shippers help businesses get their products where they need to go. They do essential jobs like moving things, storing them, and using technology to ensure everything runs smoothly. The best part is that they help businesses save money, be flexible, and focus on what they’re good at. Even though there are a few challenges, working closely with these outside helpers can make businesses thrive in a constantly changing world. As we move forward, the role of third-party shippers will keep evolving, making it easier for businesses to grow and reach people everywhere.

Introduction:

When buying things online, getting packages quickly and without mistakes is essential. Auto-print orders are like a helpful friend in making this happen. Auto-print changing the way businesses send out packages by making the process faster, more reliable, and better overall.

From Hard Work to Smart Work:

Back then, sending out packages was a lot of manual work. It was slow, and people often made mistakes. As more people started shopping online, businesses needed a way to keep up without messing up. That’s where auto-print orders come in. These orders are an updated and better way to send packages, making the process smoother and more straightforward.

Understanding Auto Print Orders:

Auto-print orders are a super helpful tool in shipping software. They produce essential shipping papers like labels and packing slips without someone typing in details for each order. Businesses can set up rules to make these papers automatically whenever an order is placed, saving time and effort.

Good Things about Auto Print Orders:

Saves Time:

Less Mistakes:

Scalability:

Real-time Updates:

Customizable:

How to Use Auto Print Orders:

Connect with Your Online Store:

Set Up Rules and Preferences:

Try It Out and Get Better:

A business owner is frustrated with a pile of discared labels as the struggles to auto print orders effectively.

Challenges and Things to Think About:

While auto-print orders are outstanding, there are a few things to keep in mind:

Initial Set-Up Takes Time:

people who make the program or from experts, it can become manageable.

Costs a Bit:

Employee Training:

One More Step Towards Efficiency 

Once you taste the freedom and automation auto-print orders provide, you will be hungry for more! The next step after implementing these automated orders is hiring a fulfillment partner. Fulfillment partners take these orders and fulfill them by hiring staff to do the work and housing your product. Offloading this essential practice to professionals can save time and money, which are all crucial elements of running your business.

If finding a fulfillment partner is the next right choice for your business, reach out to eHub today. eHub works tirelessly to match businesses with fulfillment partners that fit their specific needs. eHub has an extensive, highly vetted network of fulfillment providers. Save time and money by working with eHub instead of searching for a fulfillment partner and being disappointed with the results. 

Conclusion:

Sending out packages easily and quickly is essential for your business to thrive. Auto-print orders are the heavy lifters, making the shipping process faster and better. Even though there are a few things to figure out first, the good things about auto print orders, like saving time and making fewer mistakes, make them an excellent tool for businesses. As more and more businesses use tools like these specialized orders, sending and getting packages online will become even smoother and more fun for everyone.

Introduction

A new approach called 3PL dropshipping is transforming the way eCommerce businesses operate. It’s like a dynamic team effort where online retailers, product manufacturers, and logistics experts join forces to streamline the buying process. This blog post will explore 3PL dropshipping, its simplicity, benefits, and the impactful changes it’s bringing to our online shopping experience.

Understanding 3PL Dropshipping

3PL dropshipping is a collaborative effort between online sellers, manufacturers, and fulfillment centers, also known as 3PLs. Unlike the old way of doing things where sellers had to keep lots of stuff in their storage, 3PL dropshipping lets sellers sell things without housing and storing their stuff. Ordering something online goes straight from the 3PL warehouse to your door without the seller ever touching it.

Understanding the Different Parts of 3PL Dropshipping

Online Seller’s Shop:

Product Manufacturers:

Storage and Shipping Services (3PL Providers):

Customers:

Why 3PL Dropshipping is Awesome

Less Money Needed:

More Kinds of Things to Buy:

Easy to Grow:

Sellers Can Do Their Best Work:

People All Around the World Can Buy:

Less Risk of Problems:

How 3PL Dropshipping is Changing Online Shopping

Happy Customers:

Changing with the Times:

Getting Things Done Faster:

Knowing What People Like:

Helping the Planet:

Challenges and Things to Think About

Even though 3PL dropshipping is excellent, there are some things to be careful about. Sellers need to pick good 3PL partners who work well with them. Many 3PL providers have specialties. One 3PL provider working with one company might not be a good fit for another. Finding the right one for your business is the hardest part of working with a 3PL provider.

eHub’s mission is to connect eCommerce brands with the right 3PL provider for your business. If moving forward to finding a 3PL provider feels suitable for you, but you feel overwhelmed by the process, schedule a free call with eHub today to see if we can help!

Conclusion

3PL dropshipping is like a superhero that makes everything easier and better. By working together, sellers, manufacturers, and 3PL providers create a system that gets things to customers quickly and correctly. As more people buy things online and want them fast, 3PL dropshipping is becoming the go-to way for businesses to make customers happy. So, the next time you order something online, remember the extraordinary teamwork behind the scenes to bring it to your doorstep!

Introduction

Warehouses play a vital role in the global supply chain. They are crucial in enabling the smooth flow of goods from one point to another. The world is becoming more automated. Thus, a warehouse control system ensures maximum operational efficiency and accuracy.

In this blog, we will explain WCSs, discuss their pros and cons, and explain how to choose the right one for your business.

What is a Warehouse Control System?

A Warehouse Control System (WCS) is software that manages and optimizes warehouse operations, including inventory management, order picking, and shipping. WCSs work alongside Warehouse Management Systems (WMS) to provide real-time control and visibility into warehouse operations. 

WCSs are responsible for managing individual tasks within the warehouse, such as directing automated equipment, picking and putaway operations, and shipping and receiving. Thus, by integrating with WMSs, WCSs help optimize warehouse processes, reducing waste, increasing efficiency, and improving accuracy.

Pros and Cons of WCSs

Like any technology, WCSs have their pros and cons. Therefore, here are some benefits and drawbacks to consider when choosing a WCS for your warehouse.

Pros

1. Increased Efficiency

Firstly, WCSs can automate many tasks traditionally performed by human workers. This reduces the risk of human error and increases the speed and efficiency of warehouse operations.

2. Improved Accuracy

WCSs also leverage real-time data and analytics. They can help reduce errors and improve accuracy in warehouse operations, which in turn leads to fewer mistakes and improved customer satisfaction.

3. Reduced Labor Costs

Further, WCSs automate many of the tasks traditionally performed by human workers. Thus, WCSs can help reduce labor costs and improve profitability.

4. Scalability

Finally, WCSs can be scaled up or down depending on the size and needs of your warehouse. This makes it easier to adapt to changing business needs.

Cons

1. High Initial Investment

First, implementing a WCS can be expensive, requiring significant capital expenditures upfront.

2. Training and Maintenance

Additionally, as with any technology, training and maintenance requirements can be a large burden on warehouse staff.

3. Risk of Downtime

Next, there is a risk of “downtime”. Any technology system is vulnerable to downtime. Moreover, this leads to lost productivity and revenue.

4. Limited Flexibility

Finally, some WCSs may have limited flexibility. Thus, they require significant customization to adapt to specific business needs.

How to Choose the Right WCS

Choosing the right WCS for your warehouse is crucial. It can make or break efficiency and productivity. Here are some factors to consider when selecting a WCS.

1. Compatibility

First, ensure that your WCS is compatible with your warehouse management system. Also, check its compatibility with other systems you may have in place.

2. Scalability

Next, let’s talk about scalability. Choose a WCS that can be scaled up or down depending on the size and needs of your warehouse.

3. Integration

Look for a WCS that can integrate with other systems. For instance, check integration with transportation management systems. Why? Because this helps provide end-to-end visibility into your supply chain.

4. Customization

Additionally, consider a WCS that can be customized to meet your specific business needs.

5. Support and Maintenance

Ensure that the WCS you choose comes with robust support and maintenance options. This helps to minimize downtime and disruptions.

How to Implement a WCS

Implementing a WCS requires careful planning and execution to ensure a smooth transition from the current system to the new one. Here are some steps to follow when implementing a WCS.

1. Assess Your Current System

First, conduct a thorough analysis of your current warehouse system to identify areas for improvement.

2. Define Your Objectives

Second, clearly define your goals for implementing a WCS.

3. Choose the Right System

Third, choose a WCS that meets your specific business needs and requirements.

4. Plan Your Implementation

Fourth, develop a detailed plan for implementing the WCS. Further, the plan should include timelines, budgets, and resources.

5. Train Your Staff

Provide complete training to your staff to ensure they are comfortable using the new system.

6. Monitor and Evaluate

Continuously monitor and evaluate the new system’s performance to find areas for revision. Then, make those critical changes.

Conclusion

In summation, WCSs are vital in ensuring maximum efficiency in warehouse operations. By automating many tasks traditionally performed by human workers, WCSs can help reduce labor costs, improve accuracy, and increase efficiency. When selecting a WCS, it’s vital to consider several factors. For example, this can include compatibility, scalability, integration, customization, and support and maintenance. Further, this helps ensure you choose the right system for your business needs. Therefore, with planning and execution, implementing a WCS can help take your warehouse operations to the next level.

Introduction

Finding USPS collection boxes near you can be a great convenience, especially if you need to mail a letter or package outside regular business hours. This blog will explore several methods for locating these boxes, including online resources, mobile apps, and physical searches. By the end of this article, you’ll be equipped with the knowledge to find USPS collection boxes near you quickly and easily.

Online Resources

One of the simplest ways to find these collection boxes near you is through online resources. The USPS website offers a tool to enter your zip code and locate all boxes within a certain radius. This tool is available on the USPS website under the “Locations” tab.

In addition to the USPS website, several third-party websites can also help you find USPS collection boxes. These websites often provide additional information, such as the location of nearby post offices, hours of operation, and services offered. Some popular third-party websites for finding USPS collection boxes include Yelp, Google Maps, and MapQuest.

Mobile Apps

Mobile apps can be convenient if you’re on the go and need to find a collection box quickly. The USPS has its own mobile app, which includes a feature for locating nearby collection boxes. This app is available for both iOS and Android devices and can be downloaded for free from the App Store or Google Play.

In addition to the USPS app, several third-party apps can also help you find USPS collection boxes. These apps often provide additional features, such as tracking packages, purchasing postage, and scheduling pickups. Some popular third-party apps for finding USPS collection boxes include ParcelTrack, Postmen, and Package Buddy.

Physical Searches

If you prefer a more traditional approach, you can physically explore your area to find collection boxes. Collection boxes are typically located near post offices, shopping centers, and other high-traffic areas. You can also find them on street corners, parks, and other public locations.

Keep an eye out for USPS signage to make the most of your physical search. Collection boxes are often marked with blue and white signs that display the USPS logo and indicate pickup times. If you’re having trouble locating a collection box, don’t be afraid to ask for help. Local businesses and residents may be able to point you in the right direction.

Conclusion

In conclusion, finding USPS collection boxes near you is simple and can be accomplished through various methods. Whether you prefer to use online resources, mobile apps, or physical searches, plenty of options are available to help you locate these boxes quickly and easily. By taking advantage of these tools, you can save time and hassle the next time you need to mail a letter or package outside regular business hours.

Introduction

UPS Mail Innovations is a shipping service offered by UPS that combines the reliability and convenience they are known for, with the efficiency of USPS. This service handles lightweight, non-urgent parcels, such as catalogs, magazines, and small packages. In this blog post, we’ll take a closer look at this specialized service, how it works, and some of its benefits and drawbacks.

How UPS Mail Innovations Works

UPS Mail Innovations works by combining the strengths of UPS and USPS. This partnership provides an efficient and cost-effective shipping solution. Here’s how it works:

1. Sender drops off the package

The sender drops off their package at a designated UPS location, such as a UPS Store or drop box.

2. UPS picks up the package

First, UPS picks up the package from the sender. Then, they will transport it to a UPS Mail Innovations processing center.

3. Sort and Process the Package 

The package is sorted and processed at the processing center according to USPS standards.

4. USPS takes over

Once the package has been sorted and processed, it is handed over to USPS for final delivery to the recipient’s mailbox or door.

5. Deliver the Package

Finally, USPS delivers the package to the recipient’s mailbox or door, completing the shipping process.

Who is this service for?

This service helps businesses and individuals who need to ship lightweight, non-urgent parcels at an affordable rate. This service is particularly beneficial for small businesses and e-commerce sellers who must ship large packages. 

Using this service, you can take advantage of discounted shipping rates and benefit from UPS’s convenience and reliability. Additionally, this service can be helpful for individuals who need to send items such as catalogs, magazines, and small packages to friends and family members

Benefits

There are several benefits to using UPS Mail Innovations for shipping:

1. Affordable rates: This service typically offers discounted shipping rates. This makes it an affordable option for businesses and individuals who need to send lightweight, non-urgent parcels.

2. Convenience: With UPS Mail Innovations, the sender doesn’t need to worry about dropping off the package at the post office or arranging for a separate pickup. UPS picks up the package from the sender. Then, they hand it off to USPS for final delivery to the recipient’s mailbox or door.

3. Reliability: UPS is known for its reliability and on-time delivery. This extends to UPS Mail Innovations as well. By using this service, senders can have peace of mind knowing that their packages will be delivered on time and in good condition.

4. Tracking: UPS Mail Innovations provides tracking information for packages. Thus, senders and recipients can keep track of their shipments and know when to expect delivery.

Drawbacks of Using UPS Mail Innovations

While there are several benefits to using this service, there are also some drawbacks to consider.

1. Limited package weight: UPS Mail Innovations is for lightweight packages only. Thus, shipping larger or heavier items may not be the best option.

2. Longer delivery times: Because UPS Mail Innovations involves handing off the package to USPS for final delivery, the delivery may take longer than if it were shipped directly.

3. Limited tracking information: While this service does provide tracking information for packages, the level of detail may not be as extensive as with other shipping options.

Conclusion

Overall, UPS Mail Innovations can be a good option for businesses and individuals who need to ship lightweight, non-urgent parcels and want an affordable, convenient, and reliable shipping solution. However, it may not be the best option for larger or heavier packages or those needing faster delivery times or more tracking information. If you’re considering using UPS Mail Innovations for your shipping needs, carefully weigh the benefits and drawbacks to determine if it’s the right choice for you.

If you have an eCommerce business, you’ve heard of “outsource logistics.” But what exactly is outsource logistics? It involves entrusting parts or all of a company’s logistics operations to a specialized third-party provider, offering various services, from transportation and warehousing to inventory management and order fulfillment.

What is Outsourced Logistics?

Outsourced logistics simplifies the way companies manage their supply chain. They team up with external specialists who excel in inventory handling and transportation tasks. Imagine a business focusing on creating and selling products while another expertly handles the intricate process of getting those products into the hands of consumers. That’s outsourced logistics in a nutshell.

The Pros and Cons of Outsourced Logistics

Like any business decision, outsourcing logistics has its own set of advantages and disadvantages.

Pros:

Cost Savings: Companies often reduce their operational expenses by outsourcing logistics. Specialized providers have the infrastructure and expertise to lead to more cost-effective operations.

Focus on Core Business: Outsourcing logistics allows a business to concentrate on what it does best, like product development and customer engagement, boosting overall productivity.

Access to Expertise: Logistics providers offer specialized knowledge, technology, and experience, potentially improving efficiency and effectiveness.

Flexibility and Scalability: External providers offer adaptability to changing needs, allowing for scaling up or down based on market fluctuations without major internal adjustments.

Cons:

Loss of Control: Handing over logistics operations means losing some control. Decision-making and immediate troubleshooting might be affected.

Dependence on Provider Performance: Logistics success relies on the provider’s performance and reliability.

Communication Challenges: Misalignments or compatibility issues might lead to communication gaps or operational differences.

Business associates sit at a table and discuss whether or not they should outsource logistics.

Why Companies Choose to Outsource Logistics

Businesses choose to outsource logistics for several reasons:

Cost Savings: Outsourcing often leads to cost efficiencies due to the expertise and technology of third-party providers.

Focus on Core Competencies: Outsourcing allows companies to focus on their primary business activities, enhancing productivity.

Access to Expertise: Logistics service providers bring specialized knowledge, technology, and experience.

What to Consider When Outsourcing Logistics

Before outsourcing logistics, companies should consider several factors:

Business Requirements Assessment: Understand and define the logistics needs and desired services.

Provider Selection: Choose a provider that aligns with the company’s needs and has a good track record.

Cost and Contract Negotiation: Negotiate pricing and contractual terms, ensuring transparency and fairness.

Communication and Relationship Management: Maintain open and effective communication channels with the logistics provider.

How Do You Outsource Logistics?

Outsourcing logistics involves several essential steps to effectively delegate a company’s logistics operations or a part of those operations to an external third-party provider. Here is a comprehensive guide on how to outsource logistics:

1. Assess Your Needs: Evaluate your current logistics operations and identify the specific areas you want to outsource. Determine the scope of work and the services required.

2. Research Potential Providers: Research various third-party logistics (3PL) providers or logistics companies. Look for providers that align with your specific needs, have a good track record, offer the required services, and operate in the regions where you need support.

3. Request for Proposals (RFPs): Issue RFPs to shortlisted logistics providers. Clearly outline your requirements, expectations, and key performance indicators (KPIs) to evaluate their proposals effectively.

4. Evaluation and Selection: Assess the received proposals considering cost, capabilities, technology, experience, and compatibility with your company’s culture and operations. Select the provider that best meets your criteria.

5. Negotiate Contracts and Terms: Negotiate contracts and terms with the chosen logistics provider. Ensure the contract includes service level agreements (SLAs), cost structures, responsibilities, performance metrics, and dispute resolution mechanisms.

6. Transition Planning: Work with the chosen provider to plan and execute the transition of the logistics operations. This might involve transferring data, physical assets, and knowledge to the new provider.

7. Implementation: Collaborate closely with the outsourced provider during the initial stages of implementation to ensure a smooth transition. Monitor the performance closely and address any issues that arise.

8. Regular Review and Management: Regularly review the outsourced provider’s performance against the agreed-upon KPIs and SLAs. Manage the relationship by maintaining open communication, addressing concerns, and making necessary adjustments.

9. Continuous Improvement: Work with the logistics provider to identify areas of improvement. Seek ways to enhance efficiency, reduce costs, and streamline processes over time.

10. Risk Management: Identify and manage potential risks associated with outsourcing logistics, such as disruptions in the supply chain, data security, or financial risks.

Conclusion

It’s important to note that successful logistics outsourcing relies on effective communication, collaboration, and establishing a solid partnership with your chosen logistics provider. Regular monitoring, evaluation, and flexibility ensure a successful outsourced logistics operation.

By carefully evaluating these factors, you can ensure a successful partnership with a logistics provider that aligns with your business goals.

Are you looking for a 3PL? Maybe you’ve never worked with one, but you’re questioning if now is the right time. Or maybe you’ve been working with your 3PL for a while, but you’re questioning whether they fit your business. Either way, we’ve got you covered as we explore hybrid fulfillment. 

What is a 3PL?

It’s an extension or partner of an e-commerce business, with the 3PL focused on logistics activities. To sum up, the 3PL is focused on getting the right product to the right customer on time. This includes order fulfillment, pick-and-pack, printing the correct labels and addresses, and having carrier contracts to ensure that the end product gets delivered to the customer on time. 

How much does it cost to transition from self-fulfillment to using a 3PL?

There’s usually a cost for every touch– pick, pack, and ship an order. All the different touchpoints result in a fee. Keep an eye out for our cost calculator release, which will help you determine the specific cost based on your needs. Feel free to reach out for assistance even before its formal launch. 

Can you choose how many touches you want? 

Yes, 3PLS offers many different services. For example, you may have one-way logistics where they pick, pack, and ship, but they don’t do returns that may come back to the actual eCommerce business themselves, or 3PL could handle the return for a fee. 

How do you know when to start looking for a 3PL? 

A common reason is growth. If you’ve surpassed your capacity for existing fulfillment functions in your business, it might be time to consider a growth plan. Ask yourself if you want to scale your current fulfillment process. Would you need more warehouse space? More staff? All that is an added cost. Or would you prefer to outsource the fulfillment to a 3PL equipped to handle scalability? 

Another reason to start looking for a 3PL is specialization. Gabb Wireless is an excellent example of one of our customers utilizing hybrid fulfillment with a 3PL for one of their specialized products. They create safe digital devices for kids, and one of their products requires serialization, so they use a 3PL specialized in serialization.

Another specialization is big and bulky. The benefit of using a specialized 3PL in big and bulky is that they know how to pick, pack, and ship big and bulky products and have carrier contracts specializing in big and bulky, saving you on shipping costs for heavier items. 

Sometimes, it’s more about experience, not specialization per se, in handling a specific product type. For example, if you’re shipping medical devices, you might want to find a 3PL with extensive experience in this field.

What is Hybrid Fulfillment? 

Hybrid fulfillment is a fulfillment model in which a business self-fulfills and utilizes one or more 3PLs. This could mean sending a particular big and bulky product to one 3PL that specializes in big and bulky and fulfilling the rest yourself. 

If you want to improve your delivery time, you can utilize multi-location fulfillment. If you are on the East Coast and you are self-fulfilling but want faster shipping times for those on the West Coast, then it’d be a good idea to diversify using hybrid fulfillment and get a 3PL on the West Coast to shorten delivery times. 

An example of a business utilizing hybrid fulfillment is our previously mentioned customer, Gabb Wireless. They split up their inventory and work with a specialized 3PL for their specialized product, and self-fulfill the rest.

A business owner sulks while looking at their computer screen, trying to decide whether or not its time to switch to a different 3PL.

If you already have a 3PL, how do you know if you should switch? 

It’s like being in a romantic relationship. If your 3PL is not meeting the expectations you set from the beginning, first have a conversation with them to review the SLAs and manage expectations. If it continues and it’s comprising your customer experience or company values, maybe it’s time to start looking for another 3PL. If the partnership relationship isn’t working, there are better fish in the sea. 

How do you manage the 3PL relationship? 

Before you start, set expectations and negotiate with your contacts so SLAs are defined. This will make managing the relationship easier. Include those expectations in the contracts whenever possible—you’ll thank us later. Now, excellent and clear communication is essential to maintaining that relationship. Quarterly business reviews are pretty standard and should be discussed at least once a quarter.

Preparing for Peak Season in Q3 with your 3PL 

What do you need to ask your 3PL? 

Ask questions in retrospect to the previous year that you want to correct, and realign with the expectations you set from the beginning. Ask your 3PL if they are ready to meet those expectations in Q4 and meet timelines. If you notice trends like slowing down on cycle times, ask about it and ask how you can lend your support. 

If You and Your 3PL Aren’t a Good Match…

How long is the process of switching 3PLS?

It depends. How big is your footprint in 3PL?  What’s the complexity? If you have a specialized product, it can be more challenging. Finding a new 3PL and realigning and transporting inventory can take months. If you want to switch close to peak season, dive into communications with your 3PL and plan to switch after. Focus on refining and improving your existing partnership, and don’t say you’re looking for a new 3PL.

But if you’re self-fulfilling and considering utilizing a 3PL in Q3, it might help you manage peak-season logistics.

How does technology play a role? 

Technology is a massive part of the industry. With hybrid fulfillment especially, utilizing technology that facilitates the relationships between 3PLs and merchants is fascinating. Both can see who’s fulfilling what and get a holistic view of what’s happening as if they are working from opposite sides of the country using real-time data to see what order was shipped. 

What to Look for When Searching for a 3PL

Something that is highly underrated is seeking 3PLs using transparent technology. Question how their technology is improving communication, visibility, and transparency. Understanding the tech stack is crucial to strengthening the 3PL relationship. 

How long are these 3PL contracts? 

It depends on many aspects. More extended contracts may provide additional discounts, but if you’re brand new to using a 3PL, you may not want long contracts. Make sure you provide appropriate “outs” if SLAs are not met. 


How We Can You Find a Top Tier 3PL

Our 3PL Network is like a dating service, except every candidate is guaranteed to be top-tier. We match you with your perfect pair based on your business, criteria, and needs. Every 3PL in our network has been vetted to ensure they are of the highest caliber. We sit with each e-commerce business and understand their criteria, volume, and what they value. We have a matching software to pair you with the best-fit 3PL service and present it to you to evaluate. Your 3PL represents your brand, so you want to ensure you have the right fit. 

As the e-commerce landscape continues to evolve, adopting a hybrid fulfillment model and leveraging the expertise of 3PLs can significantly enhance the customer experience. Stay informed about industry innovations and consider joining networks to optimize your fulfillment processes. Remember, your 3PL reflects your brand, so finding the right fit is crucial, and don’t be afraid to contact us for help.