Third-Party Logistics (3PL) Warehousing and Distribution: Process and Tips

Ecommerce businesses rely on partners to help them move inventory and fulfill sales. Among these providers are third-party logistics, otherwise known as 3PLs. When retailers rent a warehouse from a 3PL, they are advised to utilize a few tips and follow processes for maximum benefit.

What is a 3PL?

3PLs are known by a wide range of names: fulfillment companies, fulfillment warehouses, and fulfillment centers. Despite their various terms, 3PLs aim to achieve one goal—to fulfill a business’s warehousing and fulfillment needs. The management of the supply chain is consequently streamlined.

What are 3PL warehousing and distribution processes?

Order fulfillment is handled by 3PLs in addition to a wide range of fulfillment services, such as storage and order processing. Shipping and receiving, too, are outsourced to 3PLs. The fulfillment service processes returned merchandise while also providing cross docking or kitting.

Logistics companies run 3PL warehouses with the aim to provide essential storage and distribution services. Growing ecommerce companies utilize these facilities when they require more warehouse space. In fact, using a 3PL warehouse offers numerous benefits advantageous to expanding businesses.

What are the benefits of 3PL warehousing and distribution?

Fast-growing businesses may lack the in-house resources to manage varying consumer demands. Or seasonal fluctuations can make storing inventory year-round a hassle. In cases like these, retailers rely on 3PL warehousing and distribution to fulfill orders and manage merchandise efficiently.

When businesses outsource the time-consuming and labor-intensive process of order fulfillment, they gain more time and opportunity to focus on core operations. Marketing, innovations and strategic planning are key business operations that demand significant oversight—3PLs give businesses this time.

An unmanageable flow of inventory is best managed by a 3PL fulfillment warehouse. The 3PL stores all the inventory and keeps track of them with real-time tracking systems. Goods remain organized and products are expertly sorted. Alerts are sent when inventory runs low so retailers can order more.

Advanced technology streamlines processes within the fulfillment centers. AI and robots are being used more and more to pick and pack and ensure accuracy with every order. Retailers visually see the current status of their inventory with the use of mobile apps and other digital tools.

What are tips for using a 3PL effectively?

Getting the most out of a 3PL warehousing and distribution service starts with the business understanding their current and future needs and their products. Retailers selling frozen food items, such as ice cream, require specialty warehouses to preserve the integrity of their products.

Frozen vegetables and seafood must be stored at specific temperatures to remain safe for consumption. Warehouses with climate-controlled facilities are crucial, as they provide refrigerated or frozen spaces as well as transportation equipment, sometimes referred to as “reefers” in industry lingo.

Certain supply chains are highly regulated, like perfumes and batteries. Since products like these are labeled as hazardous, they require storage in a warehouse that specializes in hazardous goods. The 3PL warehouse staff are certified to handle hazardous merchandise and trained to follow protocols.

Since 3PLs utilize the latest technology, retailers are advised to make use of it. Warehouse management software lets 3PL staff know where to put or pick inventory. The same technology is used to keep the retailer’s website up to date, so customers see inventory levels when they shop.

Kitting is a central component in many ecommerce businesses. Subscription-model businesses may require that components be assembled into a single package before shipment, usually as part of a promotional bundle. It’s important to find a 3PL experienced in kitting services.

Businesses place high value on customer satisfaction and offering same-day shipping increases this likelihood. When fast shipping is a part of a business’s strategy, retailers should find a 3PL that picks, packs, and ships orders on the day of purchase.

How do businesses find the right 3PL provider?

Partnering with the right 3PL warehousing and distribution provider is key to customer satisfaction and success. The retailer’s needs must match the 3PLs capabilities. During the search of potential 3PLs, assess their industry experience and skills as well as their abilities to tackle challenges.

Geographical location is key to delivering orders to customers as fast as possible. Focus on target markets when considering a 3PL warehouse and position products close to the majority of customers for optimum national fulfillment. Consider utilizing multiple fulfillment centers and warehouses.

Inquire about scalability, responsiveness, and ability to adapt to fluctuating circumstances—which reveal their operational capabilities. Good customer support can enhance the partnership. The right 3PL should be available to resolve issues, answer questions, and provide real-time updates on logistics operations.

When you need reliable 3PL warehousing and distribution solutions, look no further than OLIMP. Our vast network of warehouses across North American ensures your storage needs are met. Choose from thousands of warehouses, including a wide range of specialty warehouses and flexible rental options. 

We connect you with the right warehouse that meets your business needs, whether that involves cross-docking services or pallet rework. Our valued customers have access to short- or long-term storage options. We can even accommodate last-minute requests for warehouse space.

At OLIMP, specialty warehouses are at your fingertips. Choose from industrial warehousing or military authorized facilities. You also have access to a wide range of frozen, cold, and dry warehouses. HAZMAT warehouses are available when your hazardous goods must be regulated.

Rest assured that the warehouse and fulfillment centers in our network are secure, making them the safest facilities in which to store freight of any size, value, and dimension. Many of these warehouses offer local delivery, too, allowing you to drop off the goods and return to the road.

Booking a 3PL fulfillment warehouse with OLIMP requires filling out our online form to request a quote. One of our friendly managers will provide you with the right warehousing options and assist with the booking process. Visit our website today and reserve a warehouse where and when you need it.