If you run a business that relies on shipping inventory to customers, picking and packing is one of the critical aspects of logistics you need to streamline.
This is an often overlooked part of the supply chain process, but inefficient picking and packing can result in unrealized revenue and the added cost of processing returns or cancelations.
Smaller businesses often require logistical support for warehousing, picking and packing, deliveries, and returns. That’s why choosing a 3PL company may be the way to go for all your logistical needs.
Many 3PL companies offer comprehensive pick and pack solutions, inventory and order management, support software, and efficient packing and shipping methods. This improves efficiency and lowers costs, especially for businesses without a dedicated logistics team.
First, let’s take a closer look at how 3PL companies are changing the modern business landscape.
What is 3PL?
Third-party logistics, or 3PL, is the best way to handle logistics in the modern small business landscape.
Small and medium-sized companies can benefit significantly from 3PL and order fulfilment providers since they provide a full range of logistical services, taking the cost and time resources off the table.
Included in this are picking and packing services.
Let’s examine how hiring a 3PL for picking and packing can help your business in more detail.
Using a 3PL for picking and packing
By cutting down on the amount of time and resources you need to dedicate to getting your products packaged correctly and delivered, you will have more time to focus on business growth.
Plus, disorganized and improperly packed inventory costs businesses a lot of money in unrealized income and returns.
3PL companies make use of cutting-edge technologies, such as software-based categorization and inventory management, to improve efficiency and reduce packaging errors.
This will benefit productivity and profitability, and build customer loyalty.
3PL picking and packing services and benefits
Partnering with a 3PL for picking and packing has several benefits, not the least of which is reducing the number of client returns. Return logistics can be costly, so using technology to cut down on errors is a great advantage.
Plus, due to their flexibility, 3PL providers are able to quickly adjust to a shift in demand while maintaining continuity of picking and packing operations.
Another benefit of working with a 3PL provider is getting better shipping costs. Since the 3PL is managing picking and packing on your behalf, they can get bulk pricing by consolidating your goods with other shipments.
With more affordable ground shipping and storage costs, you can pass these savings along to your customers.
Using 3PL picking and packing services is particularly beneficial for online businesses with no physical location. This lets the business operate with low overhead and avoid needing to secure capital for logistics infrastructure.
Let’s look at some of the top 3PL providers.
Top 3PL companies for picking and packing
Not every 3PL company provides the same services. When looking for a partner for picking and packing, make sure that this is an included service.
RedStag
Red Stag Fulfillment offers complete coverage of the US and gets products to clients within two days, thanks to fulfilment centers strategically placed near either coast.
The business concentrates its efforts on prompt and precise order fulfilment, ensuring that all items will be sent in accordance with the service level you have selected.
The cost varies according to the amount, weight, and services needed. With no extensive agreements or obligations, Red Stag Fulfillment just charges on a monthly basis.
ShipBob
ShipBob, which has more than 30 warehouse sites, has quickly established a reputation for providing automated 3PL solutions for small- to medium-sized businesses. The services provided by ShipBob include a unique cost structure that is suited to each client’s needs and an all-in-one shipment charge that covers several 3PL operations.
FedEx
Working with FedEx will appeal to smaller businesses since they provide excellent customer support and will guide you through the many logistical processes. Pricing for several parts of logistic firms depends on current costs, package size, and unit count. FedEx offers packaging as part of its services.
How to find the best 3PL for your business
First, do your research. This means checking out various companies and understanding what their offerings, pricing, and locations are. Reach out with any questions – this will also show you how responsive their customer success team is.
Another thing to ask about is the 3PLs technology: What integrations are offered? How is the client dashboard’s user experience? How can this help your visibility into inventory?
A good 3PL provider will help your business scale as well as tailoring services to the unique needs of your business. Customization and flexibility are both important features of any 3PL provider.
3PL picking and packing FAQs
- What are some advantages of outsourcing logistics to a 3PL company?
Accessing advanced inventory management software and other integrated technologies, saving on overhead and the need for capital to build logistics infrastructure, and low-error picking and packing are some of the advantages of working with a 3PL provider.
- Can 3PLs help you reach new markets?
Some 3PL providers offer services around the world, giving you an advantage when expanding to new markets. If this is something your business is looking to do, check global footprint and available services in various geographies before choosing a 3PL company.
- Is Freightos.com a 3PL?
No. Freightos.com is an online booking platform – not a logistics provider. This means that Freightos.com can help when it comes to finding shipping to a 3PL service provider warehouse, but will not be providing these services directly.
To learn more about 3PL check out our other guides including (3PL) Third Party Logistics Providers, How Does 3PL Work, and Third-Party Fulfillment.
