A guide on how to choose the perfect 3PL Order Processing Partner
Selecting the right third-party logistics (3PL) partner is crucial for the success of your e-commerce business. A reliable 3PL supplier can enhance your customer experience, streamline your operations, and support your business growth. Here is what to look for and ask about when looking for a 3PL e-commerce fulfilment supplier like us at CBF.
Understanding 3PL Services and rolls to support your business
A 3PL provider offers outsourced logistics services, which include warehousing, inventory management, order fulfilment, shipping, and returns processing. Utilising a 3PL allows businesses to outsource functions to support their distribution networks and ecommerce sales channels so that you can focus on core activities like marketing and product development, while experts like CBF handle the packing and logistics.
What does a 3PL do?
Warehousing: Storage of your inventory in strategic locations to optimise delivery times across the UK, Europe and Worldwide.
Inventory Management: Tracking stock levels, manage batch information, quality control from manufacturers and inventory accuracy usually via online tools for you to have exposure too all data you need to keep stock flowing correctly.
Order Fulfilment: Picking, packing, and shipping orders to customers the way you want your customer to receive their orders.
Shipping and Freight: Arranging transportation and delivery services either using your or the 3PL’s courier and Royal Mail accounts.
Returns Processing: Handling returns, restocking, and customer refunds.
How do you assess your business needs for a 3PL?
Your Order Volume and Frequency
All 3PL providers should be able to scale to manage your average order volumes, seasonality and peak times requirements. This helps in assessing the capacity requirements of a 3PL provider and ensures they can handle your business fluctuations.
Your 3PL provider should be able to cope with increases in stock holdings at your peak times as well as the ability to manage your expectations around the release of orders so that you can communicate to your clients eliminating any recourse and additional customer service resources.
Product Types and Special Requirements
Consider the nature of your products. Are they perishable, fragile, or oversized? Do they require special handling, packaging, or storage conditions? Your 3PL provider should be able to look after your stock to maintain all quality, temperature and located in places so that it is efficient when picking to process orders.
Budget Constraints
Define your budget for logistics services. While cost is important, balance it against the quality of service and potential benefits a 3PL can bring to your business. Small and light products will take less time to pick and pack than larger bulker items. So expect a larger picking fee for the more time involved in processing your orders.
Your 3PL should be able to work with you to manage your cost expectations, but as you will appreciate, their overheads are fixed and usually built around a ‘volume of orders’ model.
If you were going to have a warehouse, staff and all overheads with the infostructure required to run your own order processing, you will quickly see that the 3PL model provides good value for money and mental peace when you find the right partner.
Key Factors to Consider
Location and Coverage
Choose a 3PL with warehouse locations that align with your target markets. This reduces shipping times and costs and enhances customer satisfaction. Although warehouse location is not business critical for a UK market as the carrier networks are able to deliver to most locations the next day. If you are shipping to locations like North America, Europe, Asia and Australia you would be wise to build your client base and look at the cost viability of having stock laded in a location closer to your target audience. As we are all aware, cashflow is everything and locating stock in more than one location can prove to be hampering to the business. Talk to your 3PL about their experiences and see if they can offer any advice.
Technology and Integration
Evaluate the 3PL’s technology infrastructure. They should offer robust warehouse management systems (WMS), order management systems (OMS), and seamless integration with your e-commerce platform. You need to be able to see live inventory numbers as well as live order processing status with the ability to change and communicate about each order as the process happens.
Be aware that most online management tools have no limits on user licenses and prebuild API’s that will seamlessly integrate into your sales channels, marketplaces and platforms. They do not usually cost the license holder (in most cases) anything other than time to setup, so do not be fooled at charges that are needless.
Scalability
Ensure your 3PL can scale their services as your business grows. This includes handling higher order volumes, adding new product lines, and expanding into new markets. This can be a deal breaker when we talk to new clients. A lot of 3PL’s will force clients to use specific packaging and will add charges to cover infrastructure costs when orders fall to lower than expected levels.
Most sectors have seasonal changes. Christmas is the obvious one, but make sure your 3PL knows the order flow that’s expected. That was they will be able to give you accurate costings and be able to support you when the pressure gets turned up for all involved. We work with our clients to manage forecasts and plan together so there are no shocks from any part of the logistics process.
Customer Service and Support
Customer service is critical. The 3PL should provide dedicated support, quick response times, and effective issue resolution. Ticket Systems, phones, emails and video calls are all essential for various touch points of your business. Your 3PL is an extension of your business and should act that way. If you had a disgruntled customer or an urgent job that needs immediate attention you need to know that your 3PL partner is able to step up and accommodate which will relieve all dealing with customer support in your business.
Experience and Reputation
Research the 3PL’s experience in your industry and their reputation. Look for reviews, testimonials, and case studies to gauge their performance and reliability.
Not all 3PL’s can manage all sectors and products efficiently. Warehouses, infostructure and staff should be able to talk your language and are able to give you the confidence in looking after your assets to keep your customers happy.
Remember social media is a powerful tool and one persons word may not be the whole picture, satisfy yourself so that you can be comfortable with the tools offered and the people working within your chosen 3PL partner.
Pricing Structure
Understand the 3PL’s pricing model. Common structures include per-order fees, storage fees, and additional service charges. Make sure there are no hidden costs.
Low picking fees and introductory storage offers are easy to see through if you give the rates time to work through. The larger the 3PL the more clients they deal with so you are more likely to be a faceless entity to them. But if this works for you then game on! But our experience most clients want a little more of a personal touch to look after their products the way you would like them to.
Evaluating Potential Suppliers
Research and Shortlisting
Always conduct thorough research to identify potential 3PL partners. Use online reviews, industry forums, and professional networks to create a shortlist of candidates.
Make sure you have the time to speak to the staff and warehouse management team to get a feel of how the 3PL is run. They will give you a more honest open conversation without the sales patter. We find that this transparent approach will win client’s confidences and enables us to have a better working relationship for the long term.
Request for Proposals (RFPs)
Send RFPs to shortlisted 3PLs outlining your requirements. Compare their responses based on capabilities, pricing, and service levels.
Site Visits and Meetings
Visit the 3PL’s facilities to assess their operations firsthand. Meet with their team to discuss your needs and gauge their understanding and commitment.
Case Studies and References
Request case studies and client references to understand the 3PL’s track record. Speak with their clients to get honest feedback on their performance.
Making the Final Decision
Comparison and Analysis
Compare the shortlisted 3PLs based on the gathered information. Consider factors like service quality, cost, technology, and scalability.
Contract Negotiation
Negotiate terms that align with your business goals. Ensure the contract covers service levels, pricing, performance metrics, and termination clauses.
Implementation and Onboarding
Plan a detailed onboarding process. This includes system integration, inventory transfer, and staff training to ensure a smooth transition. Timings are critical here. All involved need to be on the same page when it comes to live date. Remember your chosen 3PL will not have seen your stock before and needs to become familiar with the nuances.
Maintaining the Relationship
Performance Monitoring
If you can, regularly monitor the 3PL’s performance against agreed metrics. Use KPIs like order accuracy, delivery times, and inventory accuracy to assess their service. Reporting tools from order management systems can work well here to give you the information to analyse
Regular Reviews and Communication
Schedule regular review meetings to discuss performance, address issues, and explore opportunities for improvement and innovation is all fine. But your 3PL partner will usually become a regular if not a daily touch point for parts of your business, the working relationships are key. As long as all parties are aware of how to escalate and manage workflow then the collective team will grow together.
Handling Issues and Disputes
Establish a clear process for handling issues and disputes. Maintain open communication to resolve problems quickly and maintain a strong partnership.
You know this already by now but...
Choosing the right 3PL e-commerce fulfilment supplier involves careful planning and evaluation. By understanding your business needs, assessing key factors, and maintaining a strong relationship with your 3PL partner, you can ensure a seamless logistics operation that supports your business growth and enhances customer satisfaction. CBF is a business critical part of hundreds of businesses daily, we support all our clients with good communication and giving them the tools to make our processes transparent which breeds trust with all involved.
Free API Integrations for all your Shopping and Courier Channels
Ecommerce Order Management
with ONE login
All E-commerce clients have access to our FREE Software Integrations with your shopping carts.
- Online Stock Controls
- Live Order Tracking
- Multi-Channel Order Management
- Shipping Management
- Full Reporting
- Barcode Verified
- Cloud-based, Easy to use
- & it's free to you.
In the last month we have processed the following:
Online Retailers, Wholesalers, Importers and Manufacturers we work with them all.
- No setup fees
- Secure Storage
- Free API Integrations
- Same day dispatch guarantee *Some seasonal T&Cs may apply
- Royal Mail & all major courier networks managed
- Over 30 years storage and distribution experience
- Organically Certified Warehouse and processes
- Free Online Stock Control Software
- Dedicated Support Team Management
Keeping it simple and efficient.
We guarantee a same day dispatch of your goods.
WE STORE
Securely and efficiently in our heated Warehouse
Our warehouse is our own, We have a large space able to securely store pallets, boxes and goods on pick/pack bays ready for your customers to order. Come and see us.
WE PACK
Contract Packing or Order Fulfilment. We are ready!
Daily order processing or contract packing projects, we work with them all. Receiving orders from all sales channels we can pick/pack and dispatch the same day of order regardless of volumes.
WE DISPATCH
Any size of consignment, anywhere in the world.
Our teams work with all packing suppliers as well as the National Couriers, Royal Mail and Pallet Networks all day every day. Talk to them about how to ship your orders securely and efficiently.
Need help getting your packaging right?
We store hundreds of different types of packaging from padded envelopes and postal boxes to mailer bags and larger boxes. We can help you choose the right eco-friendly and sustainable filler options from starch loose fill, air sacs, to branded brown paper fill.
Our suppliers can brand tape for you and produce branded boxes if you need them. Let's work together to get your customers' shipments delivered safely and in style.
We are all about the best reviews
for you and our processes.
Your brand and online presence will not grow if your fulfilment partner lets you down with poorly packed and mispicked items. We are all hunting for the 5-star review and together we actively work on providing the processes and tracking to keep you and your customers informed.
Your 3PL Ecommerce Fulfilment, Distribution Centre and Contract Packing partner. Planned, Integrated, Packed and Delivered.
T: 01242 802140
CBF Fulfilment
1-11 Alvin Street
Gloucester
GL1 3EJ
UNITED KINGDOM