If you’re an ecommerce business owner, you’ve spent the time and effort to build your business from the ground up. As your volume of orders increases, you must find a reliable logistics partner to ensure your competitiveness and maintain customer satisfaction. It’s an important decision because it could determine your business’s sustainability.
If you want to scale up your business, you must consider 3PL in Australia. 3PL, or third-party logistics, is increasing in popularity among omnichannel ecommerce businesses in Australia. Discover what this method is about and why it’s a good option for your business.
3PL in a Nutshell
What is 3PL or third-party logistics? It is a business model that involves outsourcing the logistical processes of your business. When you work with a 3PL provider in Australia, they can store, fulfil, pack, and ship your orders for you. It serves as the crucial link between the manufacturing operators and customers of your ecommerce business.
Ideally, you will want to handle all business processes in-house. But this isn’t always possible, especially if you are a small ecommerce business or a startup working on a shoestring budget. Therefore, outsourcing the logistical processes can simplify the order fulfilment process. A logistics provider can ensure that your customers get their orders on time and helps to ensure a smooth customer experience. It brings several benefits to your business, especially if you can keep your customers happy.
Working with outsourced 3PL in Australia offers you several benefits, such as warehousing, inventory management, picking and packing orders, shipping, and reverse logistics (for product returns).
How to Choose a 3PL Provider in Australia
If you are looking for a streamlined solution for your eCommerce business, 3PL is the way to go. But you can only enjoy the benefits of these services if you choose the right provider. The right 3PL provider offers top-tier service delivery to fulfil your streamlined solutions in every aspect of your business.
The following are important guidelines when choosing your 3PL provider in Australia.
1. Choose a 3PL provider with size and scale.
The ideal 3PL provider is any company that has a well-designed warehouse, updated technologies and automated processes, and a robust freight carrier network. These factors combine to ensure maximum efficiency in the flow of orders from the warehouse to your customers.
It starts with an efficient warehouse management system that makes it easy to store and identify products, so they are shipped faster. A reliable warehouse management system is crucial if you want 3PL services that can be scaled to match your business demands.
2. Choose a 3PL provider with excellent data management.
Data is vital in ensuring a successful and efficient order fulfilment process. Traditional order fulfilment methods rely on humans to pick and pack the orders for ecommerce businesses. This method leaves room for human error, especially when warehouse staff have to handle multiple orders per day. Warehouse staff without access to data management systems make decisions on the go, which can result in poor customer service because of wrong orders being packed or missing or incomplete orders, etc.
Using a data management system is a solution to bypass the common errors in order fulfilment. Logistics staff can access real-time information about inventory to ensure that orders are processed swiftly but without risking errors or mistakes.
3. Choose a 3PL provider with adequate support.
A good logistics partner must provide end-to-end support to help your business thrive. They’re your business partners, so they have to serve your business interest.
Your chosen 3PL provider must be available if you need any assistance or if you have questions about their service. They should openly communicate with you should any issues arise. Like any partnership, its skilled staff must be ready to address your concerns when you need them to.
4. Choose a 3PL provider that understands your business needs.
There is no one-size-fits-all approach to delivering logistics services that facilitate your ecommerce business growth. Therefore, choose a provider that understands your unique business requirements and makes an effort to provide tailored solutions to match your needs.
You must also find a partner that treats your customers like their own. This commitment to delivering a high-quality logistical service ensures that they will give utmost priority and care when handling and transporting your goods. Working with a provider that offers this type of commitment to your business is what you need, to take your business to the next level.
Questions to Ask a 3PL Provider
The best logistics providers can customise their services to meet the unique requirements of your business. As a business owner, you want to expand your business in the future. It’s crucial that your logistics partner can scale their services to match your needs.
You must establish your long-term goals and ensure that your logistics partner aligns their services with those goals.
The best 3PL providers offer a secure and safe warehouse to store your goods. If you can, conduct a physical check of the facility to ensure they have on-site security and surveillance.
Automation is vital in today’s ecommerce industry. You want to see data about your goods in real time. The ability to access information is crucial in gaining insights about your business and ensuring the visibility of your goods. The automated process provides timely notifications about the progress of your goods in the logistics and supply chain process.
Running an ecommerce business can be unpredictable. Some months have a higher volume of orders than others. Revenue management is essential to ensure your business’ sustainability.
Your chosen 3PL provider must be able to provide cost-control solutions to help your business stay afloat for those months when your revenue takes a slight dip. A flexible solution is vital to ensure the profitability and sustainability of your business.
Choosing a 3PL provider in Australia is crucial because they will be part of your business operations. Do your research to ensure that they have the right capabilities and that their services align with your business needs. Using this approach ensures that you have a reliable partner for your business to thrive and grow.