The rise and popularity of the e-commerce business model have resulted in a tremendous expansion in the logistics sector and its services. However, because every organization has different demands, the types of 3pl fulfillment companies will also differ.

The Following Are The Common Types Of Third-Party Logistics Providers:

·        Standard 3PL Providers

A typical 3PL firm provides the most basic logistical services, such as warehousing, transportation, and, to a lesser extent, distribution. Therefore, hiring a standard 3PL supplier is usually one of the most cost-effective solutions due to their limited services.

·        Service Developer 3PLs

A 3PL service developer is another third-party logistics firm providing IT infrastructure and management assistance in addition to regular storage and shipment. They often offer dependable value-added services to clients like security, product tracking, cross-docking, and compliance management.

·        Customer Adapter 3PLs

A client adapter A 3PL business takes over practically all of its client’s logistics operations, overseeing the end-to-end shipping procedures. Clients, in turn, have access to warehouse and transportation management systems, allowing them to gain visibility into operations and, if necessary, begin shipment customization.

·        Customer Developer 3PLs

Customer developer 3PLs modify their systems in addition to managing the partner company’s whole logistical operations. Instead of providing services, the customer developer 3PL effectively becomes the client company’s logistics department. On the other hand, hiring a customer developer 3PL is expensive because of the workforce and duties involved.

3PL Warehouse Multi-Channel Distribution

Consumers currently purchase through various channels, from brand websites and online marketplaces to traditional brick-and-mortar storefronts. During the COVID-19 epidemic, the evolution and extension of client purchasing channels began quickly, fueling the rise of e-commerce and logistics companies. As a result, the increase in online sales was considered not only in the business-to-consumer (B2C) sector but also in the business-to-business (B2B) and consumer-to-consumer (C2C) categories.

Third-party logistics firms that want to grow their company while satisfying the 3PL client and end-consumer expectations can use and utilize a 3pl fulfillment strategy to serve numerous sales channels at the same time.

To optimize for multi-channel 3pl fulfillment effectively and correctly, a 3PL must consider the following factors:

·        Labor and Space

The 3PL must set the stage by ensuring it has the space, workforce, capacity, and skills to handle each channel separately. Only then can it manage several channels concurrently, which necessitates highly coordinated activities.

·        Inventory Management

3PLs who provide multi-channel distribution services must realize that inventory needs for B2B and B2C channels are entirely different. While delivering to shops necessitates inventory tracking by pallet or case, direct shipment to customers necessitates tracking SKU units.

·        Warehouse Technology

Building a dependable IT infrastructure is critical for enhancing warehouse operations and effectively processing orders from numerous sales channels. For increased inventory accuracy, efficiency, and visibility into operations and employees, warehouse management systems, order management systems, and mobile barcode scanning are crucial.

·        Service Level Agreements (SLAs)

The service expectations for throughput, quality, execution, schedule, inventory, shipment, and other fulfillment components must be specified in detail in the SLAs made between the firm and 3pl warehousing services. In addition, SLAs encourage proactive fulfillment operations management by all parties involved.

You may simplify multi-channel distribution through inventory, infrastructure, and information by working with a 3PL.

·        Inventory

A 3PL consolidates inventory for all your channels in one location, lowering the volume of stock and the number of associates required across your distribution network. The more inventory locations you have for your sales channels, the higher the expenses and the chance of unsold products.

·        Infrastructure

With a 3PL partner, you can fulfill orders from a single warehouse and inventory pool for B2B and B2C channels. The warehouse management system transfers items to forward pick zones as orders come in, and sales predictions predict future demand. You can assure flexible multi-channel distribution at cheap freight costs because most 3PLs have an extensive network of facilities with a centralized management system.

·        Information

When you choose a third-party logistics (3PL) provider to handle multi-channel fulfillment, you have end-to-end insight over the whole supply chain via a single platform. You are always in the loop with your 3PL partner, from real-time inventory and order management through shipping/tracking information.