For a successful eCommerce order fulfilment to process through, the onus lies on the 3PL partner and their efficiency. A Third Party Logistics (3PL Partner) is responsible for handling the logistics part of a firm, including services like warehousing, real-time inventory management, reverse supply, customs, & other supply chain entities. 

According to an online report, the global 3PL industry was estimated at approximately GBP  800 billion in the year 2020. It is projected to reach over GBP 1.4 trillion in 2026, with a growth of 8% over time (2021-2026). These promising figures show the importance of the 3PL fulfilment service and its administration in assisting businesses to improve their logistics processes.

The rapid evolution of customer service and expectations, increasing demand for speedy delivery and shipping, coupled with a rising competition rate, are just a few of the reasons why businesses outsource their logistics through 3PLs (third-party logistics companies) and carriers.

To reap the maximum benefits from hiring a 3PL service, the two parties must set specific expectations right from the beginning. Defining your needs clearly and meeting them can ensure a mutually beneficial partnership.

Here are 7 tips to enhance the efficiency of your 3PL fulfilment service management.

Tips to Organise 3PL Services

Use of a Technologically advanced Warehouse technology

An eCommerce fulfilment firm maintains the warehouse for your products whilst bringing in significant cost-cutting and time savings. They are accountable for the building, the materials, as well as labour costs. 

They provide the required training to their employees for efficient operations management. Along with this, they keep tabs on the current trends in equipment and technology, resulting in the most organised model for the business. 

Incorporating or revamping technologies in the warehouse will greatly increase the effectiveness of the fulfilment process. A WMS is a Warehouse Management System that helps automatically monitor inventory levels, receipts as well as orders and allocations. 

Integration with WMS allows for automated and seamless processing of orders for an eCommerce business is a crucial element for 3PL Fulfilment Services.

This enhances efficiency and accuracy when managing a large volume of orders from various fulfilment channels and minimises the chance of human error when dealing with multi-layered and intricate workflows of real-time management. 

Defining a framework for regular communication

Communication is the most important aspect of success for proper 3PL management. A clear and effective communication system can bring transparency between the 3PL company and the business. 

Communication can also take an in-depth written contract that specifies the expectations for services to be offered as well as the objectives to be reached and milestones that are targeted, the processes for escalation, and points of contact.

It is recommended to have a team on hand to manage all communications with the service provider. Additionally, clarifying the process for escalation in the contract can help avoid confusion in the event of late, missing or damaged deliveries.

Enforce supply chain automation 

Automation of order fulfilment and shipping can help make your supply chain more efficient in every step, from order processing to automated shipping.

For instance, repetitive warehouse tasks can be made easier by utilising the latest technology in logistics automation. Think of goods-to-person (GTP) as well as pick-to-light (PLT) and voice-based picking systems. This gives you the time to concentrate on growing your business’s sales & reach.

With these automated fulfilment capabilities, when a customer makes an order, it will be automatically delivered to one of the fulfilment centres. Your logistics partner then seamlessly delivers it to your customers, following strict protocols. 

Create a logistics management strategy

Before you implement new processes for logistics, it is crucial to define your objectives, KPIs, available resources, as well as the equipment and technologies required to meet these objectives. Be sure to incorporate various data-driven insights to optimise and organise your logistics.

Consider how you can find the most reliable suppliers and get them onboard. A trustworthy 3PL partner offers top-notch services that optimise inventory, adhere to stipulated time frames for delivery, and efficiently handle the processes required to deliver and return the products safely. Also, think about the best way to monitor and improve your inventory.

You’ll be required to discover ways to increase fulfilment accuracy and speed, whether through more efficient storage systems or improved pick and pack processes.

Another important thing to consider is the carriers within your network. Consider the different prices and services they offer. Depending on the kind of services you provide, a good combination of carriers will save you the shipping costs.

Tracking Inventory

Managing the inflow and outflow of goods is probably the most fundamental job that any logistics company performs. It’s also critical when you’re an eCommerce fulfilment provider warehouse, handling these tasks for various B2B eCommerce customers.

This process, also known informally as “Inventory Management”, begins before any product gets to the 3PL warehouse. This process will continue until the item leaves the warehouse and is shipped to the final destination.

The entire process helps with quality customer experience. As soon as your product enters the warehouse, from its packing to its shipping & ultimately getting delivered- your customer gets a text with real-time tracking every step of the way.

This process ensures that your customers receive an exact distribution summary by monitoring the items delivered in real-time. The most reliable method to get real-time information on the products in transit is to improve tracking functions using SKUs or batch, bits or serial numbers.

Allocate appropriate resources to manage the relationship

The client’s resources on their side should be managed proactively. The 3PL partner should be given the right access to the best services.

Greater goals for the two parties are achievable when the 3PL fulfilment management systems work in tandem with the business and not as the business. 

Essential tasks that can be handled better through the 3PL partner must be given to it as quickly as possible. In this way, it will be able to innovate and contribute to achieving results and extend the relationship drastically. 

Use demand forecasting 

If you’re not currently using your prior demand data to determine and analyse your product’s current demand, you’re missing out on what all it can do. Demand planning could benefit your supply chain’s efficiency and help you reach your goals faster.

For instance, if an eCommerce business that sells trousers knows that their black, green, or black trousers are the most popular during October, December and January, you could collaborate with the suppliers to ensure that you’ve got enough stock in order to take advantage of seasonal peaks.

A comprehensive supply chain management involves meticulous preparation, following your suppliers and other stakeholders like demographics and locations.

In the event that your vendor is located in another country, they’ll likely be receiving their peak seasons and celebrations in a different time frame as opposed to yours. Therefore, you should keep these points in mind to prevent inventory issues and improve your supply chain control.

Conclusion

Logistics management by 3PL companies in the UK consists of many moving parts that, as your business grows, could become a full-time (and lengthy) effort.

3PL Fulfilment can help scale businesses reach new heights, but only with a clear roadmap. From warehouses to international logistics knowledge, 3PL Fulfilment has the best logistics services with a strong distribution network that includes fulfilment centres and advanced technology solutions for logistic processes that can help manage systems while also cutting costs and saving time.