One of the most common questions we get is: ‘what is 3PL and how does it all work?’
Whether you are a start-up that is rapidly expanding, or a tested business that is looking for ways to focus more attention on the engine room of your business, it can be summarised pretty simply. We break our charging into three main categories: Storage, Handling and Freight.
Storage
We consider the type of products and access frequency for your business and weigh up whether shelf, pallet or mixed storage is most appropriate and base your pricing on this. A shelf space measures 2.7m (w) x 0.85m (d) x 0.40m (h) or the height of your tallest product, and is useful if you have many, physically small products that are frequently accessed. Pallet storage is best for slow moving bulk storage items (stored up high) or best selling / fast moving goods (stored low, easy to access).
Handling
You will have a direct line with a dedicated client manager. When stock arrives it is carefully counted and put away within 24 hours. Any variations or damages are communicated back to you as discovered. Sales orders can reach us via a multitude of formats – we are very flexible. Our intention is to fit in with your existing processes, not dictate these to you.
Freight
Our freight rates include both the functional responsibilities for consigning goods as well as managing the incidentals of freight movement such as loss and damage prevention, claims, and service quality management. We will also track and report shipping costs to you in clear and concise formats. We will always select the most economical method of shipping unless requested otherwise.
Transportation Logistics Services
Once the goods are made and packed they are now ready for sale. But how do you get them from the manufacturer’s facility to the warehouse, the wholesale and retail stores or to the doorsteps of your customers? This is where transportation comes in.
A 3PL company transports the goods from your local or overseas manufacturer/supplier to wherever you need the goods to be. They are in charge of all the paperwork, they work hard to meet your schedule and do their best to save you money.
But what specific transportation services do 3PL Melbourne companies offer? They include:
- Export and import requirements: If you need goods to go to a location outside the country or to come from overseas and get to where you or your clients are, 3PL companies ensure that everything regarding transportation works out.
- Domestic or local freight: Here the third party logistics company finds you the most competent, fast, yet cost-effective freight transportation. It can be either by rail or by truck. They also manage and overlook the pick-up and delivery schedules to ensure that everything is on track.
Distribution Logistics Services
Distribution entails storing goods and shipping the same goods to various customers. They can distribute goods either B2B (business-to-business) or B2C (business-to-consumer).
The 3PL company makes sure that all the goods are handled with care, stored in the proper environment and shipped safely.
Some of the main functions here include:
- Product kitting and packaging
- Order packing and processing
- Warehousing and inventory
- Parcel shipping to consumers
- Management of returns sent back by consumers owing to one out of many reasons
- Freight shipping to other retail businesses
How to Choose a 3PL Logistics Provider for You
There are many 3PLs out there ready to help you, but first, you need to determine your immediate business needs, overall costs, and long-term goals. Some things to look at before you make this decision include references and customer satisfaction, technology compatibility and volume. Let’s take a closer look at these.
- Volume: Make sure you choose a provider who can handle your current product volume but also scale up to accommodate future growth.
- Flexibility: Your 3PL should be ready to make major changes to the number of goods your business ships at a moment’s notice.
- Technological Capabilities: Choose a provider that has the technologies to track and deliver your packages. This will also make it easier to monitor key metrics about your fulfilment process.
- Transparent: Your 3PL should be transparent about their costs and what occurs at each link of the logistics chain.
- References: References and past performance will help you know whether others were satisfied with the performance of your provider. Were their deliveries on time as promised? What did they do to mitigate any complaints that may have occurred?
- Trust: Your 3PL logistics provider will occupy a critical point in your business and will ultimately be trusted with your entire inventory. You need to be able to trust them with this responsibility and to deliver on time to your customers.
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