A third-party logistics provider (also known as a 3PL) handles logistical needs such as warehousing, distribution, packaging, etc. These providers specialise in these areas of operation. They can tailor their services according to the demands and needs of their customers. Customers may not be able to control internal business-related factors or external ones.
Apart from logistics, many 3PL companies also help customers with production and procurement. Using third-party providers enables eCommerce businesses to further profit from their operations. Therefore, they play a key role in integrating eCommerce sellers’ supply chains.
What are the Services provided by Third Party Logistics Companies?
Scaling up your eCommerce business will require you to use the following services.
- Warehousing
- Inventory Management
- Picking and Packing
- Shipping and Receiving
Warehousing:
After the third-party company receives the final product from your business, they begin their part of the process. You can also charge a 3PL Warehousing Services for the transportation of your goods from your factory or warehouse to its facility. Third Party Logistics Warehouses store the products before customers place orders. The warehouse management software tracks your product’s inventory and entries into its warehouse.
Each product is given a SKU code, which identifies its location in the warehouse. A SKU code can help identify a product on a shelf, floor, bin, or pallet. The product is visible via their system and also via your software, such as RCSL, which allows you to see your entire business at a glance. Afterwards, you can decide which of these SKUs should be reflected on your online store. The handling, distribution, and transportation processes can be customized to a greater extent with some 3PL providers.
Inventory Management:
Inventory Management for some 3PL Companies isn’t just about tracking the product. Integration with your eCommerce store, synchronizing the inventory levels at each fulfillment checkpoint, and reordering inventory levels at each fulfillment checkpoint, and reorder the inventory.
This is a supply chain Design that works very well for D2C and eCommerce businesses with just one or two online sales channels. Your Third party Logistics provider might also use RCSL as the number of Channels or marketplace increases.
The Stocked Inventory can be monitored with any eCommerce inventory Management Software. With the 3PL’s technology and workflow, you can also receive real-time stock counts on the store’s website, which helps display out-of-stock items to your customers.
Picking and Packing:
During this phase, the fulfillment process officially begins. Pick-and-pack fulfillment is carried out by a 3PL. Some integrate with eCommerce aggregates like RCSL to make this process easier. As a result, all in order, shipments, inventory, tracking and stock levels are all in one place instead of manually updating a spreadsheet.
Whenever a new order placed, it is passed on to the warehouse picking team, who collect the order from the locations in its respective quantities and pass it on to the packing team. Getting the order ready for shipping is the part of their job. The packing depends on what is available and what your brand prefers.
Examples of materials used:
- Polybags & Plastic Packaging Bags
- Unbranded boxes
- Paper-based dunnage
- Packing tape
- Bubble wrap & mailers
As long as you use the right packing material, you will not be charged separately. If you use Third Party providers, they will recommend and advice you on the best shipping method. The shipping company will charge your company based on volumetric weight, keeping in mind the possibilities of Damage.
Shipping and Receiving:
Generally, 3PL providers will manage the entire shipping process from beginning to end, which means that the packing team will purchase, print and adhere the required shipping labels on your behalf. While others compare the shipping costs and select the best deal.
It is better to choose a Third Party Logistics Services provider who keeps in mind the customer’s delivery speed and packages size, and offers you the most affordable options.
Conclusion:
In additional services in 3PL, RCSLIndia offers warehousing and inventory management. We offer no-obligation quotes to companies seeking to leverage our outsourced services.
3PL Warehouse Management Services 