If the past years have taught us anything, a world with a plethora of opportunities awaits in warehouse fulfillment. You have heard it or maybe seen it—fulfillment centers perform
packing, picking and shipping of goods for B2B orders or e-commerce business. If you are in a 3PL or e-commerce business, chances are you already know the nuts and bolts of warehouse fulfillment services. So, why are we talking about it? After all, fulfillment centers are the lifeblood to scale your business, address pain points and fill the gaps in your supply chain. Sounds good? Fasten your seatbelt as you are in for a smooth ride.
Warehouse Fulfillment in 2024 and Beyond—Everything You Need to Know
Third-party logistics is a cornerstone for companies vying to scale their business without the headache of expanding logistics operations internally. What is 3PL? It is an outsourced logistics service that streamlines warehouse management and offers a lifeline to companies, handling packaging, freight consolidation, inventory management and procurement. In short, 3PL partners relieve you of the business pressure and hassle of managing logistics functions, such as warehousing, fulfillment and transportation.
Using an outside or an independent company to offer logistics services can help you venture into untapped/new markets. Voila! You can expand the customer base and enhance customer experiences (CX) like never before.
It does not matter if you are running an e-commerce website that wants to reach its customers or you have small and medium-sized businesses; a 3PL company comes to the rescue to undertake parts or all logistics-related activities for the customer.
When Should You Partner with 3PL Company?
If you look across India with a humongous population of 1.4 billion people, serving connected consumers brings opportunities galore to boost revenue and enhance CX. No wonder India is a cash cow; however, have you considered the potentially apt time to join hands with a 3PL partner?
To begin with, time is money. So, if your business is witnessing tremendous growth and you are scrambling to meet the order fulfillment demand, you may seek a 3PL company. If you find yourself at a crossroads, consider these indicators signaling the step to embrace warehouse fulfillment services.
The sudden surge in demand;
Running out of space for inventory;
Demand for last-mile delivery;
Seasonal fluctuations;
Need to scale business.
These are by no means an exhaustive list. With technological advancements, indicators may be added or excluded.
Winning Recipe to Scale your Business: 3PL
3PL vendors are counting on optimized transportation networks and economies of scale to streamline operations and leverage you to focus on brand building. When it comes to scaling business, 3PL is second to none for KPI management, inventory management and warehousing.
The following dynamics shed light on why 3PL is the silver bullet for e-commerce business:
I] Warehouse Fulfillment and Distribution
The confluence of warehousing and distribution suggests the former, with a third-party logistics company, offers order fulfillment services, inventory management and storage services. Meanwhile, distribution includes route optimization, carrier selection, transportation management system (TMS), and tracking and reporting services. 3PL becomes a vital cog to monitor inventory levels and boost projections for future inventory demands. It will do wonders to help you track stock in the warehouse and ensure that no product is shown sold out on your website.
These upsides are merely the tip of the iceberg. Businesses can optimize their supply chain and meet customer expectations. For instance, route optimization can reduce shipping costs and ensure timely delivery (a growth enabler amidst demand for same-day or one-day delivery).
II] Customization
Customization adds value to your business. Third-party logistics is always a priority when it comes to creating personalized packaging (gifts, free coupons) for special orders and printing customized shipping labels.
With 3PL, every product is a personal statement, leveraging you to create unique and personalized products that resonate with your identity.
III] Transportation
With the know-how in transportation, you can rest assured of order volumes and frequency to help you negotiate better with carriers. The warehousing company will coordinate with delivery partners, helping you maximize returns with reduced risks. Besides, logistics service providers (LSPs) use TMS to streamline order management, manage customers and billing schedules, track shipments, manage load types (FTL or LTL) and review driver activity.
IV] Strategizing Business
3PL is the symphony of growth and optimism for retail fulfillment centers and warehouses. Collaborating with a 3PL partner will:
Boost cost savings and drive operational efficiency, business intelligence, best shipping deals and strategic decision-making.
Enable the use of stock-keeping units (SKU) to optimize the picking and packing process, show real-time inventory levels and provide customized services and analytics.
Provide analytics reports to help you boost supply chain decision-making, including resource planning, performance benchmarking, route optimization, demand forecasting and identifying carrier errors.
Negate shipping delays and provide end-to-end visibility into inventories and shipments to make third-party logistics a compelling portfolio in the digital world.
V] Policy Compliance and International Expansion
A 3PL provider can help businesses expand their market reach, including international expansion. What’s more, warehouse fulfillment services are the magic pill to save capital investment that can be redirected towards expanding penetration in the global market. Does not that sound like making hay while the sun shines? Well, it does and it may be the launch pad for you to team up with a 3PL partner. The good news is that they are already connected to the massive global networks and it may help with policy compliance and scalability (based on troughs and seasonal peaks).
Your 3PL partner will help you in navigating new policies and guide you with all legal documentation. That is a stress buster, isn’t it?
Did you know that the Houthi-led attack on the cargo ship and blockage of the Panama Canal dented logistics services? Had state-of-the-art analytics, routing and tracking systems been used, the disruption might have been lessened or averted. That is what warehouse fulfillment services bring to the table.
The Numbers Game
The sentiment around third-party logistics appears to be bullish. This comes against the backdrop of a slew of infrastructural developments and projects in India that has sent an aura of optimism among logistics service providers and supply chain professionals. For instance, the Western Dedicated Freight Corridor (WDFC) is expected to enhance freight transportation between Mumbai and Delhi, while the Mumbai Trans Harbor Link (MTHL) has underscored the logistical operations. Unsurprisingly, Grand View Research forecasts the third-party logistics market to reach USD 1,877.51 billion by 2030 and vouches for Asia Pacific, including India, to underpin the growth.
How to Choose the Right 3PL Partner?
Vetting the 3PL service providers is second to none to scale your business. Finding the perfect 3PL partner may seem an uphill task. Relax; we have got you covered.
Ask some questions (to yourself):
Do they specialize in the products I sell?
What is their service-level agreements (SLAs) achievement percentage with current customers?
What is their cost structure and pricing model?
Can they handle my company’s growth?
Where are their warehouses located?
Do they have an omnichannel presence?
Do they offer flexibility to handle the surge in sales?
WareDepot: A Perfect Ally for Your Business?
Warehouse fulfillment is in the DNA of WareDepot, an India-based most trusted 3PL company that provides unrivaled third-party logistics services to MSMEs in India. Its proficiency is unmatched in e-commerce fulfillment, freight management, retail fulfillment, household storage facility, customization and on-demand storage. The company has catered to industries including but not limited to FMCG, IT, health and beauty, and clothing.
Upshot
In the age of data-driven insights, supply chains have struggled to meet customer expectations and boost fulfillment services. 3PL can be worth a bet to stay ahead of the game as India continues to be a favorable investment hub and presents revenue-boosting opportunities in warehouse fulfillment services.
Simplify your operations with WareDepot. Explore Our Services and experience expert logistics solutions designed to save you time and money.
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