To provide the finest customer experience and to help accommodate your company’s growth, third-party logistics (3PL) providers are worth exploring, especially with the prospect of so much emerging e-commerce potential.
An experienced 3PL can be an asset and valuable resource if you have just launched your e-commerce channel and are aiming to create a seamless, scalable and cost-effective one. Vice President of Saddle Creek Logistics Services, Perry Belcastro, outlined the following five common ways that a 3PL can help combat e-commerce challenges. Let’s see what they are.
Facilitate smooth start-ups
Change is the only constant factor in e-commerce. A smooth startup is important in that it helps you maintain your speed to market, control costs and uphold service levels. However, dealing with this transition on your own is not an easy task. This is why it’s crucial to consider external support in order to also avoid putting your business at risk. An experienced 3PL puts processes in place and provides resources and expertise to guide your startup.
Stay on top of technology
Sophisticated technology solutions are rapidly becoming necessary fundamentals to have so to create optimal omnichannel customer experience. Technology gives enterprise-wide visibility and the ability to pull from multiple fulfillment sources. It also provides real-time information about product availability, order status and shipment tracking. Of course, executing technology using internal resources needs expertise, financial investment and ability to scale. Outsourcing to a 3PL absolves you from such responsibilities.
Improve order accuracy
Continued focus on process and quality is required to be able to handle an increase in volume without compromising order accuracy. Successfully applying Lean Six Sigma methodologies can help optimize fulfillment processes and deliver consistent, measurable results. Fulfilment automation solutions further improve order accuracy. Technology in the same breath, also needs investment and expertise. A 3PL that is knowledgeable in continuous improvement methodologies can create engineer processes that are custom suited for each business. They also can incorporate proven best practices and influence advanced fulfillment automation.
Provide cost-effective shipping
E-commerce consumers demand fast, free shipping. In order to minimize transportation costs, aim to deliver competitive service using economy shipping options, whenever you can. This sharp service level needs an established distribution network and sufficient buying power with carriers. A 3PL can offer convenient locations to help control shipping costs because of access to a network of facilities. This established carrier network attains you the flexibility to choose the optimal mode of service for each shipment at the best price possible.
Accommodate business growth
Growth when it comes to e-commerce sales can be pretty unpredictable and explosive. You need to react quickly to order volume increases, changing consumer demands, seasonal promotions and business fluctuations. To accommodate peak demand, there will have to be sufficient warehouse space and personnel. However, the unfortunate part is that you have to continue paying for the excess space and staff even when the volume lowers.
By proving scalable space, flexible staffing, a variety of transportation options and value-added services like gift set assembly, embroidery, coupon insertion, 3PLs give ground to meet the peaks and valleys in your business flexibly without acquiring associated overhead investment.
Dovetail’s HighJump One 3PL Warehouse Management System (WMS) ensures optimal coordination and management of supply chain management functions and can greatly improve performance in the warehouse and transport management industries. Contact Us Today!
Source: inboundlogistics