While product development is already a stressful endeavour, many businesses with an online database consider employing the 3PL warehouse to lighten the load of online fulfilment. This practice seems to be of great help to them for one main reason. Using a 3PL warehouse is a good first step to streamlining order fulfilment.
Nevertheless, to better understand the third-party warehouse, one must first understand the six dimensions that make online fulfilment. For the business owner, this would explain to them how useful this would be in the long run, knowing these are eCommerce fulfilment companies. As for the potential customer, it would be nice to know the processes an ordered item undergoes before arriving at their doorstep.
Warehousing
As with anything involving eCommerce, the business providing the ordered products needs an area to store their items in bulk, ready for potential deliveries. This would describe the first dimension of online fulfilment, which is the third-party physical warehouse. As soon as the factories finish producing products, they are placed in these warehouses, and from here, the third-party business may offer a range of services.FTL & LTL Freight Shipping & Receiving
Full truckload (FTL) and less than truckload (LTL) freight are essential tools that will help any business ship its orders to commercial customers or wholesale orders to retailers. The freight services aid in shipping products between warehouses or one that is the closest to the customer.The online fulfilment company may guide businesses through the process by arranging the FTF and LTL loads and processing the freights while finding the best deals for the businesses.
Inventory Management
A benefit of a third-party fulfilment company is it eases the stressful nature of planning alone. In inventory management, the company helps in managing stock as they have learned working with other eCommerce companies. Under inventory management, restocking levels, supply chain management, and ideal seasonal inventory levels are the three aspects that a good third party should be familiar with.Picking, Packing & Shipping
The very heart of the online fulfilment process comes from picking, packing and shipping as a product is delivered to the warehouse. A picker does what their job entails here by finding the ordered product, and a packer uses the perfect box for the size of the product involved. The packer gives a shipping label as well, and the package is given to the correct shipper who makes the deliveries.Kitting & Customization
Many businesses nowadays rely on subscribers to earn their money, which would mean good business. Kitting and customization are done by third-party logistics companies such as Red Stag to deliver personalized products to the consumer. The employees may even assemble a product if it is demanded of by the customer, giving them a sense of flexibility in products and deliveries.Reverse Logistics (or Returns)
In some cases, order fulfillments do not go as planned, mainly because of the possibility of returns. Of course, any eCommerce business would accept the reality of reverse logistics, but the variety depends on the type of product sold. For example, a considerable amount of returns comes from clothing and shoes, including electronics and appliances. Facing this problem, the eCommerce fulfilment company may accept the returns from the buyer and process them in the shortest amount of time. From here, assessments will determine if they are damaged or returned to shelves.Running a product-based business is a taxing experience as one would need their delivery service to be just as good as the quality of their products. However, with an online fulfilment company of this nature, both company and third-party standards are upheld, leading to a more profitable business model and a satisfied customer.
