Explore Our 3PL Services

Third-Party Logistics (3PL) fulfillment involves outsourcing logistics operations, such as warehousing, inventory management, and order processing, to a specialized provider. Here’s how it typically works:

Step 1: Receiving Inventory

The 3PL provider receives inventory from the seller or manufacturer at their warehouse or fulfillment center. They inspect and store the products, keeping track of them using warehouse management systems (WMS).

Step 2: Storage and Inventory Management

Once received, products are stored in the fulfillment center until orders come in. The 3PL provider uses inventory management software to track stock levels and update the seller when inventory is running low. This software is often integrated with the seller’s e-commerce platform for real-time inventory visibility.

Step 3: Order Processing

When a customer places an order, the 3PL’s system automatically receives the order details through an integration with the seller’s platform (e.g., Shopify, Amazon, etc.). The fulfillment center picks, packs, and prepares the order for shipment.

Step 4: Picking and Packing

Warehouse staff selects the ordered items (picking) and packages them according to the seller’s specifications (packing). The 3PL ensures that the correct items are packed securely and that branding materials (if provided) are included.

Step 5: Shipping

Once packed, the 3PL ships the order using its preferred carriers or the seller’s specified shipping providers. The 3PL often has pre-negotiated rates with shipping carriers, allowing for lower shipping costs. Tracking information is sent back to the seller and customer, providing visibility on the order’s status.

Step 6: Returns Management (Reverse Logistics)

If a customer returns a product, the 3PL manages the return process. This includes inspecting the returned items, restocking if the product is in good condition, and processing refunds or exchanges based on the seller’s policies.

3PL (Third-Party Logistics) providers typically offer a wide range of services that cover various aspects of supply chain management and logistics.

These services can be tailored to fit the needs of businesses, from e-commerce startups to large enterprises. Here are the key services 3PL providers usually offer:

1. Warehousing and Storage

• Inventory Management: 3PL providers store products in their fulfillment centers, tracking inventory levels and providing real-time updates to the seller.
• Temperature-Controlled Storage: Some 3PLs offer specialized storage solutions, such as climate-controlled facilities for perishable or sensitive goods.

2. Order Fulfillment

• Picking and Packing: 3PL staff selects items from inventory (picking) and packages them for shipment (packing), ensuring orders are fulfilled accurately and efficiently.
• Custom Packaging: Many 3PL providers offer customized packing options, including branded packaging, inserts, and gift wrapping.

3. Shipping and Freight Management

• Domestic and International Shipping: 3PLs manage the shipping process, often leveraging relationships with multiple carriers (e.g., UPS, FedEx, DHL) to offer cost-effective and reliable shipping services.
• Freight Forwarding: For international shipments, 3PL providers handle freight forwarding, managing the transport of goods across borders and handling customs documentation.
• Last-Mile Delivery: Some 3PLs specialize in the final leg of the delivery process, ensuring goods reach the customer’s doorstep efficiently.

4. Reverse Logistics (Returns Management)

• Returns Processing: 3PLs manage product returns, inspecting and restocking returned items, and processing refunds or exchanges based on the seller’s return policies.
• Recycling and Disposal: For damaged or unsellable products, 3PL providers may offer recycling or disposal services.

5. Kitting and Assembly

• 3PLs can handle kitting services, where multiple products are bundled together as a kit, or light assembly, where products may need to be assembled before shipping.

6. Inventory Forecasting and Replenishment

• Many 3PL providers offer demand forecasting and inventory replenishment services, using data analytics to predict when stock needs to be reordered or moved to different locations.

7. Technology Integration

• Order Management Systems (OMS): 3PL providers often integrate their systems with the seller’s e-commerce platforms (e.g., Shopify, Amazon) to automate order fulfillment.
• Warehouse Management System (WMS): A robust WMS helps manage inventory levels, optimize storage space, and streamline the fulfillment process.
• Tracking and Reporting: 3PLs offer real-time tracking of shipments and comprehensive reporting on order fulfillment, inventory levels, and shipping performance.

8. Customs Brokerage

• For international shipping, 3PL providers can assist with customs clearance, managing import/export documentation, duties, and taxes.

9. Transportation Management

• 3PLs help businesses optimize transportation routes, consolidate shipments, and choose the most cost-effective carriers for both inbound (to the warehouse) and outbound (to customers) logistics.

10. Customer Support

• Some 3PL providers offer customer support services on behalf of their clients, assisting with inquiries related to order tracking, shipping, and returns.

11. Cross-Docking

• Cross-docking involves unloading products from inbound shipments and directly loading them onto outbound vehicles, minimizing storage time and speeding up the delivery process.

12. Value-Added Services

• Some 3PL providers offer additional services like product labeling, quality control, product customization (e.g., engraving), packaging, and handling special shipping requirements.

3PL providers, like Your Logistics, serve as logistics partners that help businesses focus on growth by streamlining and optimizing their supply chain operations.

3PL providers help businesses streamline operations and improve customer satisfaction through reliable order fulfillment and delivery services.

• Cost Efficiency: Sellers don’t need to invest in warehouse space, staff, or shipping infrastructure.
• Scalability: 3PL providers can scale operations to meet peak season demands or business growth.
• Focus on Core Business: Outsourcing logistics allows businesses to focus on marketing, sales, and product development rather than supply chain management.
• Faster Shipping: 3PL providers often have multiple fulfillment centers across different regions, enabling faster shipping to customers.

You most likely need a 3PL provider if:

• Rapid Growth: You are struggling to keep up with order volume or entering new markets.
• Limited Storage: You are running out of space or dealing with seasonal fluctuations.
• Operational Inefficiencies: Frequent shipping delays or complex fulfillment processes.
• High Fulfillment Costs: Rising costs for shipping, labor, or managing returns.
• Focus on Core Activities: Logistics is taking time away from growing your business.
• Need for Expertise: Lack of in-house supply chain knowledge or advanced technology.
• Customer Expectations: Needing faster shipping or a smoother return process.
• Scaling Challenges: Difficulty handling multi-channel fulfillment or custom orders.
• International Expansion: Facing complex international shipping and customs issues.
• Shipping Errors: Frequent mistakes or delays leading to customer complaints.

The key difference between 3PL and 4PL is the level of control and integration in the supply chain.

A 3PL handles logistics tasks like warehousing, shipping, and fulfillment, while a 4PL takes on a more strategic role, overseeing the entire supply chain, including managing 3PLs, coordinating processes, and optimizing end-to-end logistics solutions for the business. In short, 4PL acts as a logistics orchestrator, managing multiple 3PLs and other logistics services.

Yes, a 3PL can help with returns processing, also known as reverse logistics. They manage the entire process, including receiving returned products, inspecting them, restocking items if they’re in good condition, and handling refunds or exchanges based on the seller’s policies.

This service helps businesses streamline returns and improve customer satisfaction.

Choosing the right 3PL provider involves evaluating several key factors to ensure they meet your business’s logistics needs. Here are the main considerations:

1. Services Offered: Ensure the 3PL provides the specific services you need, such as warehousing, order fulfillment, shipping, and returns management.
2. Industry Experience: Look for a provider with expertise in your industry and familiarity with your product type, whether it’s e-commerce, retail, or specialized goods.
3. Technology Integration: The 3PL should have robust technology systems that integrate with your e-commerce platforms or ERP for real-time inventory tracking, order management, and reporting.
4. Location and Scalability: Choose a 3PL with fulfillment centers located near your target customer base for faster shipping and the ability to scale as your business grows.
5. Reputation and Reliability: Check reviews, case studies, and testimonials to gauge the provider’s reliability and customer satisfaction.
6. Pricing Structure: Understand their cost model, including fees for warehousing, picking, packing, shipping, and additional services, to ensure it fits your budget.
7. Flexibility and Customization: Ensure the 3PL can customize services to meet your specific needs, such as branded packaging, kitting, or handling special shipping requirements.

The typical contract length for 3PL services ranges from 1 to 3 years, though it can vary depending on the provider and the specific needs of your business.

Some 3PLs offer shorter, more flexible contracts, especially for startups or businesses that want to test their services, while others may require longer commitments for large-scale operations. The contract length usually reflects the level of customization, volume of business, and the complexity of services provided.

3PL costs are typically structured around several components, which may vary depending on the services provided. Here are the common cost categories:

1. Storage Fees: Charged based on the amount of warehouse space used, usually calculated by pallet, bin, or cubic meter, and billed monthly.
2. Receiving Fees: Costs for unloading, inspecting, and organizing inbound inventory. This may be charged per hour or per unit.
3. Pick and Pack Fees: Charged for selecting (picking) and packaging products for shipment. This is often billed on a per-order or per-item basis.
4. Shipping Costs: 3PLs typically charge for shipping, either at standard carrier rates or using discounted rates they negotiate with carriers. This includes last-mile delivery fees.
5. Handling Fees: Fees for any special handling of products, such as kitting, custom packaging, or labeling.
6. Returns Processing Fees: Costs for managing returned items, which may include inspection, restocking, or disposal.
7. Account Management Fees: Some 3PLs charge a flat fee for account setup and ongoing management, including technology integration and support.