What Is 3PL and How Does 3PL Work

What Is 3PL and How Does 3PL Work

What is a 3PL? 

Third-party logistics (3PL) is the process of outsourcing logistics services. This includes anything that involves the management of one or more elements of a business’s procurement and fulfillment activities, including storing and shipping items around the world.

What Services Does a 3PL Provide?

Warehouse Storage

3pl provides warehousing services to manage order fulfillment for multiple customers in one location, maximizing efficiency and reducing costs.

Inventory Management

Inventory management is not simply about storing your company’s products, but also about synchronizing your inventory with your store in real-time, tracking inventory, and forecasting demand to replenish it in time to avoid delays in orders.

Picking and Packing

In addition to storing your company’s inventory, 3PL has employees perform tasks associated with order fulfillment, including picking products from each order and properly packing them for shipment.

Freight Forwarding

After the products are picked and packed, 3pl will ship them through a partner carrier. Different 3pl work with different carriers and a good 3pl will choose a carrier that has the right price and shipping speed. Some 3pl even work with local carriers to provide convenient and fast service for local orders.

Expedited Shipping

Partnering with a 3PL allows your company to provide your customers with fast shipping options. Fulfillment centers send orders daily, which is much more efficient than if you were to process them in-house. 3PLs often work with carriers such as FedEx, DHL, USPS, etc., and will have a good discount and can offer faster delivery at a manageable cost.、

Shipment Tracking

In addition to handling the shipping process, 3PL will also have customer service dedicated to tracking the status of your order, and if any abnormalities are found in the logistics information, we will provide timely feedback to the logistics company and deal with it in a timely manner.

Reverse Logistics (Returns) 

3pl also offers reverse logistics services to handle customer returns for you, where the customer gives the returned product to the carrier and then dispatches it back to the fulfillment center.

What Is the 3PL Order Fulfillment Process?

Receiving

The first step in the 3PL process is receiving the inventory at a warehouse after being made. As soon as the stock has been received by one of our warehouses, it gets ready to go into storage.

3PL Warehousing

During the next phase of the 3PL process, your stock is placed in one of our 3PL warehouses for storage. Each stock-keeping unit (SKU) has its own dedicated location in one of our warehouses. Our scalable solution means there’s more than enough room to scale with you.

Picking

When a customer places an order, the fulfillment part of 3PL begins. If your CMS is through Shopify or WooCommerce, our app ensures that orders are automatically passed through to the warehouse to be picked, ensuring a seamless, automatic process.

For non-mainstream platforms, orders can be uploaded by CSV/Excel spreadsheet.

As soon as the items have been picked up by warehouse staff, it’s time for them to be packed! Honest FulPhilment allows for custom packaging, branding, and inserts for your products.

Shipping

The next step in the 3PL process is to ship your order to your customer, whether this is by land, air or sea.

We offer our shipping services direct to your customer and to businesses. Our tracking software integrates with your eCommerce platform to keep up to date with orders and their fulfillment.

How 3PL Benefits a Business

Reduce Investment Costs

There may be those who think it makes sense to run your own private warehouse and fulfill orders with your employees. As the business grows, the cost of labor, rent, packaging materials, etc. all increase, making it cheaper for 3pl to process orders.

Reduce Error Rate

As a business manager, you may be skilled in all of your company’s operations, but fulfillment and logistics, and transportation may not be your strong suit. As your business grows, a true logistics and transportation expert can reduce the trial and error rate and be of greater value to your business.

Improve Customer Satisfaction

Dealing with shipping, fulfillment, and logistics issues can be physically and mentally exhausting, leading to errors that affect the customer experience. 3pl minimizes the occurrence of order errors such as incorrectly shipped orders, missed shipments, delayed shipments, and incorrectly filled order information. This greatly improves customer satisfaction and will also attract the growth of new customers.

Why Honest Fulphilment Should Be Your New 3PL?

Transparent and Easy-To-Understand Pricing

One of the most daunting aspects of 3PL is the hidden fees and complex pricing structure. It is a challenge to figure out the different fees for each service, such as unloading, loading, warehousing, storage, shelving, etc. We believe 3pl fees should be more transparent, that’s why choose our 3pl service, HF’s 3pl service has only two fees: packing fee and shipping fee, this fee also applies to our 17 warehouses around the world, for more pricing details please see our pricing page.

Everything Is Covered in One Honest Platform

The Honest Fulphilment App was built and is maintained in-house. Updates are released at least once a month as a result of feedback and feature requests from our clients. We also offer to develop bespoke modules for those who wish to automate and systemize specific tasks.

We are proud to offer a transparent and user-friendly system that anyone case use. There’s no lengthy fixed-term contract or complicated onboarding and setup process, just an easy-to-operate platform!

Global 3PL Warehouse Locations

With warehouses around the world at your fingertips, you can ship in bulk to any of your designated 3pl warehouses.

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