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Although using a professional shipping company can help your business streamline your logistics, not all 3PLs are made equal. Many eCommerce businesses run into the same problems: damaged products, lost merchandise, late deliveries, and mixed up orders. When these things are happening to your business, it’s a good sign it’s time to switch your partner. 3PLs are often employed when companies become overwhelmed by increasing order volumes, as they can provide the necessary infrastructure and expertise to handle such growth effectively.
Here’s what you can expect when signing with a new 3PL.
Moving Inventory with 3PL
Your merchandise will likely be your biggest concern when changing warehouses. As you are moving inventory, you’ll have to simultaneously complete customer orders. A well-coordinated fulfillment process is essential during warehouse transitions to ensure efficiency and minimize disruptions. If you use multiple fulfillment centers, you should consider moving one warehouse at a time. Although this process is slower, it will help eliminate friction with outgoing orders. Implementing robust inventory management practices during the transition is crucial to maintain order accuracy and stock visibility. Outsourcing fulfillment to a 3PL can free up capital that can then be used for core business activities like product development, allowing you to focus on growth while ensuring operational efficiency.
New Distribution Centers
New distribution centers are a cornerstone of efficient third party logistics (3PL) operations. For ecommerce businesses, the strategic placement of fulfillment centers can make a significant difference in both shipping costs and customer satisfaction. When evaluating a 3PL provider, it’s important to look at the size, location, and capacity of their fulfillment centers. A provider with a robust network of distribution centers can help you scale operations quickly and reach customers in new regions with faster, more cost effective shipping. For example, a 3PL with fulfillment centers near major transportation hubs can streamline delivery routes, reduce transit times, and lower overall shipping expenses. This not only enhances the customer experience but also supports your business growth as you expand into new markets. Additionally, 3PLs enable distributed inventory management by storing goods in multiple warehouses closer to customers, further optimizing delivery times and reducing costs.
Logistics Technology
Modern logistics technology is transforming the way 3PL providers manage supply chain operations and deliver fulfillment services. Advanced warehouse management software (WMS) and order management systems (OMS) enable seamless logistics processes, from real-time inventory tracking to automated order fulfillment. By leveraging these tools, 3PL providers can boost operational efficiency, minimize errors, and provide ecommerce businesses with valuable data-driven insights. Additionally, logistics technology supports complex supply chain functions such as reverse logistics and freight forwarding, ensuring that every aspect of order fulfillment is handled efficiently and cost effectively. The technology used by 3PLs often includes APIs to facilitate seamless communication with clients' ecommerce systems, ensuring smooth integration and enhanced operational control.
New Fulfillment Centers
Another thing to consider when planning your big move is where your new warehouses are located in comparison to your previous ones. Although transferring inventory is easiest when your new company is located in the same city as your previous partner, that may not always be the case. Differences in warehouse locations can significantly impact shipping logistics, affecting delivery times, shipping costs, and your ability to provide efficient geographic coverage. It’s crucial to take into consideration shipping or fulfillment delays your customers may experience as you move inventory to a new location. You should also take a look at your overall shipping costs from the customers’ side. When selecting new facilities, evaluating available warehouse space is essential to support future growth and ensure efficient inventory storage. If you offer different pricing relative to where your customer is ordering from, you will likely have to recalculate their shipping. It’s also important to review shipping rates, as strategic warehouse locations can help optimize these costs and improve your overall logistics expenses. When choosing a 3PL provider, consider your company's long-term goals to ensure the partnership aligns with your future growth and operational needs.
Related Article: Syncing Your Shopify Fulfillment Service with Outsourced Logistics
Integration with Inventory Management
In addition to moving your inventory, you’ll also be integrating new systems into your eCommerce store. This means there may be new processes your manufacturers or suppliers will need to know about. You’ll also have to adapt to a new tracking and warehouse management system within the warehouse. An order management system is also essential for synchronizing inventory and automating the order process across all channels.
Choosing the right 3PL like ShipNetwork can make all of these changes simple. 3PL fulfillment streamlines the transition and ensures seamless order processing from the start. Our team of eCommerce logistics experts can walk you through the entire process and ensure your business is quickly up in running in our warehouses. We offer a full range of logistics services, including transportation, warehousing, and distribution, to support your business needs. We’ll take care of the eCommerce shipping and order fulfillment so you can get back to building your business. Additionally, we provide value added services such as kitting, labeling, and returns processing to further enhance your fulfillment experience.
Logistics Trends
The logistics industry is rapidly evolving, with new trends shaping the future of supply chain operations and ecommerce fulfillment. Innovations like artificial intelligence (AI) and machine learning (ML) are being used to optimize logistics operations, improve order fulfillment accuracy, and reduce delivery times. Sustainable logistics practices are also gaining traction, as businesses seek to minimize their environmental impact while maintaining high levels of customer satisfaction. Ecommerce fulfillment continues to be a top priority, with 3PL providers adapting to the growing demands of online shopping. By staying ahead of these trends, a forward-thinking 3PL provider can help ecommerce businesses navigate the complexities of modern logistics, ensuring efficient order fulfillment and a superior customer experience.
Logistics Risk Management
Effective logistics risk management is essential for maintaining reliable fulfillment services and protecting ecommerce businesses from unexpected disruptions. A proactive 3PL provider will implement strategies to mitigate risks such as supply chain disruptions, inventory damage, and shipping delays. This can include diversifying supplier networks, investing in advanced warehouse security, and developing comprehensive contingency plans. By prioritizing risk management, 3PL providers ensure that ecommerce businesses receive consistent, high-quality service—even in the face of challenges like natural disasters or global supply chain disruptions. Ultimately, strong risk management practices help maintain customer satisfaction and business continuity, making them a critical component of any successful logistics partnership.
Ready to ditch your third party logistics provider?
Rakuten Super Logistics (RSL) is the leader in eCommerce order fulfillment services and freight brokerage. As a fulfillment company and third-party logistics company, RSL provides comprehensive logistics solutions, including warehousing, inventory management, shipping, and returns for ecommerce businesses.
ShipNetwork offers national fulfillment services and a network of 15 US fulfillment centers located in Anaheim (CA), Atlanta (GA), Austin (TX), Chicago (IL), Denver (CO), Houston (TX), Las Vegas (NV), Miami (FL), Olean (NY), Reno (NV), Salt Lake City (UT), and Scranton (PA). As a third-party logistics provider, RSL delivers third-party logistics services with expertise in managing end-to-end logistics and supply chain operations for ecommerce businesses.
Each fulfillment center is strategically placed to support efficient distribution services and commerce fulfillment, ensuring fast delivery and streamlined operations for clients nationwide.
Their state-of-the-art technology allows for integration with popular shopping cart platforms and online marketplaces including Amazon, Big Commerce, Channel Advisor, eBay, Magento, ShipStation, Shopify, Volusion, Walmart Marketplace, and WooCommerce.
Conclusion
In summary, third party logistics (3PL) providers are integral to the success of ecommerce businesses, offering solutions that improve customer satisfaction, reduce shipping costs, and enhance operational efficiency. By outsourcing fulfillment operations to a trusted 3PL provider, businesses can benefit from advanced logistics technology, strategically located distribution centers, and robust risk management strategies. These advantages enable ecommerce businesses to scale operations, optimize supply chain management, and stay competitive in a rapidly changing market. Whether you’re looking to streamline your logistics operations or expand your reach, partnering with the right 3PL provider empowers you to focus on business growth and deliver exceptional customer experiences.Whether you’re looking to streamline your logistics operations or expand your reach, partnering with the right 3PL provider empowers you to focus on business growth and deliver exceptional customer experiences.
Although using a professional shipping company can help your business streamline your logistics, not all 3PLs are made equal. Many eCommerce businesses run into the same problems: damaged products, lost merchandise, late deliveries, and mixed up orders. When these things are happening to your business, it’s a good sign it’s time to switch your partner. 3PLs are often employed when companies become overwhelmed by increasing order volumes, as they can provide the necessary infrastructure and expertise to handle such growth effectively.
Here’s what you can expect when signing with a new 3PL.
Moving Inventory with 3PL
Your merchandise will likely be your biggest concern when changing warehouses. As you are moving inventory, you’ll have to simultaneously complete customer orders. A well-coordinated fulfillment process is essential during warehouse transitions to ensure efficiency and minimize disruptions. If you use multiple fulfillment centers, you should consider moving one warehouse at a time. Although this process is slower, it will help eliminate friction with outgoing orders. Implementing robust inventory management practices during the transition is crucial to maintain order accuracy and stock visibility. Outsourcing fulfillment to a 3PL can free up capital that can then be used for core business activities like product development, allowing you to focus on growth while ensuring operational efficiency.
New Distribution Centers
New distribution centers are a cornerstone of efficient third party logistics (3PL) operations. For ecommerce businesses, the strategic placement of fulfillment centers can make a significant difference in both shipping costs and customer satisfaction. When evaluating a 3PL provider, it’s important to look at the size, location, and capacity of their fulfillment centers. A provider with a robust network of distribution centers can help you scale operations quickly and reach customers in new regions with faster, more cost effective shipping. For example, a 3PL with fulfillment centers near major transportation hubs can streamline delivery routes, reduce transit times, and lower overall shipping expenses. This not only enhances the customer experience but also supports your business growth as you expand into new markets. Additionally, 3PLs enable distributed inventory management by storing goods in multiple warehouses closer to customers, further optimizing delivery times and reducing costs.
Logistics Technology
Modern logistics technology is transforming the way 3PL providers manage supply chain operations and deliver fulfillment services. Advanced warehouse management software (WMS) and order management systems (OMS) enable seamless logistics processes, from real-time inventory tracking to automated order fulfillment. By leveraging these tools, 3PL providers can boost operational efficiency, minimize errors, and provide ecommerce businesses with valuable data-driven insights. Additionally, logistics technology supports complex supply chain functions such as reverse logistics and freight forwarding, ensuring that every aspect of order fulfillment is handled efficiently and cost effectively. The technology used by 3PLs often includes APIs to facilitate seamless communication with clients' ecommerce systems, ensuring smooth integration and enhanced operational control.
New Fulfillment Centers
Another thing to consider when planning your big move is where your new warehouses are located in comparison to your previous ones. Although transferring inventory is easiest when your new company is located in the same city as your previous partner, that may not always be the case. Differences in warehouse locations can significantly impact shipping logistics, affecting delivery times, shipping costs, and your ability to provide efficient geographic coverage. It’s crucial to take into consideration shipping or fulfillment delays your customers may experience as you move inventory to a new location. You should also take a look at your overall shipping costs from the customers’ side. When selecting new facilities, evaluating available warehouse space is essential to support future growth and ensure efficient inventory storage. If you offer different pricing relative to where your customer is ordering from, you will likely have to recalculate their shipping. It’s also important to review shipping rates, as strategic warehouse locations can help optimize these costs and improve your overall logistics expenses. When choosing a 3PL provider, consider your company's long-term goals to ensure the partnership aligns with your future growth and operational needs.
Related Article: Syncing Your Shopify Fulfillment Service with Outsourced Logistics
Integration with Inventory Management
In addition to moving your inventory, you’ll also be integrating new systems into your eCommerce store. This means there may be new processes your manufacturers or suppliers will need to know about. You’ll also have to adapt to a new tracking and warehouse management system within the warehouse. An order management system is also essential for synchronizing inventory and automating the order process across all channels.
Choosing the right 3PL like ShipNetwork can make all of these changes simple. 3PL fulfillment streamlines the transition and ensures seamless order processing from the start. Our team of eCommerce logistics experts can walk you through the entire process and ensure your business is quickly up in running in our warehouses. We offer a full range of logistics services, including transportation, warehousing, and distribution, to support your business needs. We’ll take care of the eCommerce shipping and order fulfillment so you can get back to building your business. Additionally, we provide value added services such as kitting, labeling, and returns processing to further enhance your fulfillment experience.
Logistics Trends
The logistics industry is rapidly evolving, with new trends shaping the future of supply chain operations and ecommerce fulfillment. Innovations like artificial intelligence (AI) and machine learning (ML) are being used to optimize logistics operations, improve order fulfillment accuracy, and reduce delivery times. Sustainable logistics practices are also gaining traction, as businesses seek to minimize their environmental impact while maintaining high levels of customer satisfaction. Ecommerce fulfillment continues to be a top priority, with 3PL providers adapting to the growing demands of online shopping. By staying ahead of these trends, a forward-thinking 3PL provider can help ecommerce businesses navigate the complexities of modern logistics, ensuring efficient order fulfillment and a superior customer experience.
Logistics Risk Management
Effective logistics risk management is essential for maintaining reliable fulfillment services and protecting ecommerce businesses from unexpected disruptions. A proactive 3PL provider will implement strategies to mitigate risks such as supply chain disruptions, inventory damage, and shipping delays. This can include diversifying supplier networks, investing in advanced warehouse security, and developing comprehensive contingency plans. By prioritizing risk management, 3PL providers ensure that ecommerce businesses receive consistent, high-quality service—even in the face of challenges like natural disasters or global supply chain disruptions. Ultimately, strong risk management practices help maintain customer satisfaction and business continuity, making them a critical component of any successful logistics partnership.
Ready to ditch your third party logistics provider?
Rakuten Super Logistics (RSL) is the leader in eCommerce order fulfillment services and freight brokerage. As a fulfillment company and third-party logistics company, RSL provides comprehensive logistics solutions, including warehousing, inventory management, shipping, and returns for ecommerce businesses.
ShipNetwork offers national fulfillment services and a network of 15 US fulfillment centers located in Anaheim (CA), Atlanta (GA), Austin (TX), Chicago (IL), Denver (CO), Houston (TX), Las Vegas (NV), Miami (FL), Olean (NY), Reno (NV), Salt Lake City (UT), and Scranton (PA). As a third-party logistics provider, RSL delivers third-party logistics services with expertise in managing end-to-end logistics and supply chain operations for ecommerce businesses.
Each fulfillment center is strategically placed to support efficient distribution services and commerce fulfillment, ensuring fast delivery and streamlined operations for clients nationwide.
Their state-of-the-art technology allows for integration with popular shopping cart platforms and online marketplaces including Amazon, Big Commerce, Channel Advisor, eBay, Magento, ShipStation, Shopify, Volusion, Walmart Marketplace, and WooCommerce.
Conclusion
In summary, third party logistics (3PL) providers are integral to the success of ecommerce businesses, offering solutions that improve customer satisfaction, reduce shipping costs, and enhance operational efficiency. By outsourcing fulfillment operations to a trusted 3PL provider, businesses can benefit from advanced logistics technology, strategically located distribution centers, and robust risk management strategies. These advantages enable ecommerce businesses to scale operations, optimize supply chain management, and stay competitive in a rapidly changing market. Whether you’re looking to streamline your logistics operations or expand your reach, partnering with the right 3PL provider empowers you to focus on business growth and deliver exceptional customer experiences.Whether you’re looking to streamline your logistics operations or expand your reach, partnering with the right 3PL provider empowers you to focus on business growth and deliver exceptional customer experiences.
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