There are many different ways to improve your business’s logistics. Among them, 3PL fulfillment centers are the best way to make the entire process simple and quick. The 3PL fulfillment centers are basically warehouse facilities where all the inventory is kept. In addition, the fulfillment centers also help with picking the products, packing the orders, and shipping them to the customers.
If you do not know much about the 3PL fulfillment center, do not worry—this article has you covered. So, let’s jump right into the article.
What is a 3PL Fulfillment Center?
3PL fulfillment centers are warehouses operated by an external provider. They help with inventory storage, order processing, and even shipping. Many companies do not use 3PL fulfillment centers to outsource logistics and reduce their costs while improving efficiency.
Many businesses send their products to these 3PL fulfillment centers so that they can keep them and manage them properly. Many 3PLs handle returns as well and even restock the products. Businesses can benefit from using 3PL services, as they will reduce in-house storage space and improve logistics management.
The 3PL fulfillment centers are ideal for commerce businesses and brands that want to sell things without the hassle of keeping the products to themselves. By partnering with a 3PL, they can easily focus on other aspects of the business while the 3PL helps them with their orders.
Services Offered in 3PL Fulfillment Centers
There are many different services offered in 3PL fulfillment centers. We have mentioned a few of them below.
Warehousing and Inventory
The first and key service offered by the 3PL Fulfillment center is warehousing. This means that the 3PL will ensure proper organization and tracking of the packages. They will use inventory management systems to monitor stock levels, check demand forecasts, and prevent product shortages.
Order Processing
There are many different steps involved in processing an order. When a customer places an order, the 3PL collects all the products and packs them properly. Many 3PLs also offer custom packaging, such as branded inserts and even kitting services.
Shipping and Freight Management
3PLs also offer shipping and freight management. This means that they will negotiate with the prices of the carriers such as UPS, FedEx, and other services. They will ensure that the prices that are offered are affordable and cost-effective. They can handle both domestic and international shipping very easily.
Returns and Exchange
If you don’t want to handle product returns and exchanges, don’t worry. 3PL fulfillment and services can also help you deal with customers and complete returns and exchanges.
How Does the 3PL Fulfillment Center Work?
There is an entire process through which the 3PL fulfillment centers perform and the different methods that occur
Receiving Inventory
The first and main step is to receive the inventory from the businesses. If there is no inventory, then the 3PL cannot take any orders. This is why companies need to send the products to the 3PL for storage. Every 3PL has its process of receiving and storing the inventory. They will properly organize the inventory and make sure that none of the products are overstocked or understocked.
Picking the Orders
The next step is to pick the orders. Some of the fulfillment centers require you to put the orders into the system manually. However, some 3PLs will integrate with the company’s online system and push orders directly from there. This will allow the businesses to save a lot of time and ensure that there won’t be any issues with the ordering process. The picking team of the 3PL will make a picking list that will have all the items and quantities so that the facility can collect the items accordingly.
Packing
Once the order is picked, the 3PL must package the item. They must ensure that the package is securely packed so that it does not get damaged during shipping. Some 3PLs charge for the packaging separately, while others include the service in the fee.
Shipping
The last step in the fulfillment process is to ship the order. They will purchase and print the shipping labels and have the preferred carriers through which they will ship the orders. One of the best things about the 3PLs is that they offer the best and the most affordable prices when it comes to shipping. They also provide all the information, such as the tracking number and all the updates, to ensure that the customers can keep track of everything.
Benefits of Using a 3PL Fulfillment Center
3PL benefits businesses in a lot of different ways. Below, we have mentioned some of the major benefits that you can get.
Cost Savings
The first and the main benefit that you can get us is cost savings. You can get a lot of different processes just under one roof. By outsourcing the stogie, packaging of the orders, and shipping, the businesses can save a lot of money. Hey, it can even reduce the cost of warehousing and labor. In many cases, the 3PLs also negotiate the shipping fee, which again saves a lot of money.
Faster and Efficient
Another benefit of these 3PL fulfillment centers is that they make the entire process quite fast and efficient. They will ensure the shipment is fast and the customers can get their orders in time, which means that there will be a higher number of satisfied customers.
Focus on Business
If you are partnering with a 3PL, then this means that you don’t have to worry about the logistics of the company. Instead, you can focus on the growth of the business. You can spend time on the marketing, accounting, and other aspects of the industry and leave the order aspect to the 3PL.
Advanced Technology and Tracking System
Many 3PLs use advanced technology to manage the system. Many fulfillment centers use inventory management systems that integrate with the e-commerce platform. This system includes proper tracking and automated fulfillment, which makes the entire process much easier and more effective.
How to Choose the Right 3PL Fulfillment Center
Another question you might have is how to choose the right 3PL fulfillment centers. Different factors can play a crucial role in selecting the right fulfillment Center for your business. Below, we have mentioned some of the points that you must consider.
Shipping Speed
the 1st and the main thing to consider is the location and the shipping speed of the fulfillment center. Find a fulfillment center that is close to your target audience, as it will strategically reduce the shipping time and cost. Also, opt for a fulfillment center that offers international shipping so that you can target the audience internationally.
Pricing and Cost Structure
When picking 3PL fulfillment centers for your business, you must understand the pricing model of the fulfillment center. You must learn about the storage fees, picking and packing costs, shipping rates that the fulfillment center is offering, and other hidden charges that they might charge you afterward. This will allow you to learn if this is the right fulfillment center for you.
Return and Customer Service
Many 3PL fulfillment centers even offer return and customer services. If your business does not want to handle its customers themselves, then opting for a 3PL fulfillment center that provides this service is the best option for you.
The Best 3PL Fulfillment Center for SMEs
Selecting the right 3PL fulfillment Center for your small business can be quite difficult. Below, we have mentioned the three best three PL. centers that are well suited for your SMEs
NextSmartShip
The first 3PL fulfillment center is NextSmartShip. This amazing fulfillment center offers many different services to its customers. One of the best things about this fulfillment center is that it offers great shipping prices. David also handles all the logistics of your business so that you can focus on your business’s growth.
ShipMonk
Another 3PL fulfillment center that is good for small—to medium-sized e-commerce businesses is ShipMonk. This platform has a tech-driven system that will make the entire process much more efficient and quicker. They even offer return management and order processing services to businesses.
FedEx Supply Chain
FedEx Supply Chain is another renowned company that offers many different services, including warehousing, transport management, shipping, and even fulfillment. They even have good prices on shipping.
Final Words
3PL fulfillment centers can be very beneficial for businesses. They offer a lot of different benefits and make the process of shipping an order to the customers very efficient. The fulfillment centers are basically warehouses where businesses can keep all their products stored and secured.
Not only this, but fulfillment centers also help with the entire process of the order, such as picking the products, packing them, and even shipping them to the customers. Hence, we hope this article was beneficial for you and that you know how 3PL fulfillment centers can be helpful for you.
