New Year, New You, New 3PL
Choosing the Right 3PL for Your Business
As we ring in the new year and focus on big changes we’d like to make, you may be looking to make a change to a 3PL provider who’s a better fit for your business’ needs. An outsourced third-party logistics provider (3PL) can help you manage your inventory, and take care of warehousing, transportation, and fulfillment needs, while you do what you do best: focus on research & development and growing your sales & customer base. But is your current provider the right fit for you now and in the future? Logistics is a heavy lift, so it’s important to partner with a provider who can support your needs now and in the future as you focus on growing your business.
3PLs aren’t created equally, but the cost of switching providers to be able to grow your business can delay or prohibit that next growth step. Therefore, it’s critical to find a 3PL provider you can partner with for the long haul; one that meets the needs of your business today at its current stage but also offers other services that you might need in the future to continue your growth. Depending on the stage of your business, you may have different requirements and expectations from your 3PL. In this blog post, we will discuss what attributes of a 3PL you should look for when seeking a 3PL partner at different stages of your business, such as:
- Just starting your business
- Growing your business
- Maintaining your established business
Just Starting Your Business
If you are just starting your ecommerce business, you likely have limited resources and budget and no historical order date or firm order forecast. You may also have a small or unpredictable order volume and a narrow product range. In this case, you need a 3PL that can offer you:
Flexibility: At this stage, flexibility is the most important factor in ensuring your 3PL will support your growing business. You want a 3PL that can scale up or down with your demand, and that can handle peak seasons and special promotions without compromising on service quality or delivery speed. You also want a 3PL that can accommodate your specific packaging, labeling, or kitting needs, if any. Often new businesses benefit greatly from flexibility in a 3PL partner as the business gets refined and honed during and after launch. You benefit from a partner that doesn’t try to box you in, but instead is with you at the problem-solving table innovating solutions that will allow your business to grow without holding you back. Dream of your product going viral but have nightmares about how to fulfill all of those orders? Flexibility & partnership are the keys to making viral products successful.
Affordability: You want a 3PL that can provide you with competitive rates and transparent pricing, without any hidden fees or long-term contracts. Your needs are changing; signing a long term contract might limit you from necessary business changes you may not foresee at launch. You also want a 3PL that can help you save on shipping costs by offering discounted volume rates, zone skipping, or consolidation services that carriers wouldn’t offer to a startup business.
Technology: You want a 3PL that can provide you with easy and seamless integration with your ecommerce platform, as well as real-time visibility and tracking of your inventory and orders. You also want a 3PL that can offer you advanced analytics and reporting tools to help you optimize your logistics performance and make data-driven decisions.
Growing Your Business
If you are growing your business, you may have increased order volume and product variety. You may also have expanded your customer base and target markets, both domestically and internationally. For example, an e-commerce business in growth mode is looking to add a new sales channel such as brick & mortar retail sales or retail drop ship that are operationally distinct from B2C e-commerce. This adds a lot of logistical complexity, and often it means warehousing inventory in multiple locations across the country for quick delivery to consumers and business customers. In this case, you need a 3PL that can offer you:
Capacity: You want a 3PL that can handle your growing order volume and product range without compromising on service quality or delivery speed. You also want a 3PL that can offer you sufficient and secure storage space, as well as efficient and accurate picking and packing processes.
Reach: You want a 3PL that can help you reach your customers wherever they are, both nationally and globally. You also want a 3PL that can offer you multiple shipping options, such as express, standard, or economy, as well as customs clearance and compliance services for international shipments.
Expertise: You want a 3PL that can provide you with industry-specific knowledge and experience, as well as best practices and insights honed by decades of experience and being on the front lines of innovation in the logistics industry. You also want a 3PL that can offer you multiple value-added services such as gift wrapping, personalization, kitting, and POS display assembly. Labeling and routing requirements for big box retailers are complex and change frequently. Missing the smallest detail on a retail shipment can result in significant retail chargebacks that eat into profits. Trust a 3PL experienced with the complexity of retail compliance to minimize retail chargebacks and ensure that your relationship with your new retail sales partner isn’t jeopardized.
Established Business
If you are an established business, you may have a stable order volume and large product range. You may also have a loyal and diverse customer base and target markets, both domestically and internationally. In this stage of your business, you’re looking for stability in a trusted 3PL partner that executes day in and day out. But that doesn’t mean your needs from your 3PL partner are static or any less urgent than those of a new or growing business. You’ve worked hard to grow your business, and sacrificing with a 3PL who cuts operational corners could drive some of your loyal customers away and create problems for your team. In this case, you need a 3PL that can offer you:
Reliability: You want a 3PL that can deliver your orders on time and in good condition, without any errors or damage. You also want a 3PL that can provide you with consistent and high-quality service, as well as proactive and responsive communication and support.
Innovation: You want a 3PL that can keep up with the changing trends and demands of the industry, as well as your own business goals and challenges. You also want a 3PL that can offer you innovative and customized solutions, such as omnichannel fulfillment, support special projects, or technological advantages to help you stay ahead of the competition and delight your customers.
Partnership: You want a 3PL that can work with you as a strategic partner, rather than just a service provider. You also want a 3PL that can understand your business vision and values, as well as align with your culture and brand, to help you grow and succeed together.
Choosing the right 3PL for your business is a crucial decision that can have a significant impact on your success. By considering the attributes of a 3PL that match your business stage and needs, you can find the best 3PL partner for your business. M&M Quality Solutions is a great choice for any stage of your business and can support your business’ needs now and in the future. If you are looking for a 3PL that can offer you flexibility, affordability, technology, capacity, reach, expertise, reliability, innovation, and partnership, contact us today and see how we can help you achieve your business’ goals now and in the future. M&M Quality Solutions is the provider you can rely on to grow your business.