Logistics concept with warehouse manager and transit options

 Explore the benefits of outsourcing logistics and inventory management with 3PL third party logistics

Are you seeking to streamline your fashion retail operations for maximum efficiency? Third-party logistics (3PL) could be the solution you're looking for. By outsourcing logistics and inventory management, you can free up valuable time to focus on business growth and customer satisfaction. In this comprehensive overview, we'll delve into the intricacies of 3PL order fulfillment processes and their profound impact on fashion retail.

Differentiating Between 3PL and 4PL Logistics

With 3PL logistics, you can get single services like warehouse storage, transportation, or a bundle of services. However, 4PL Logistics assigns one manufacturer to the whole organization and manages the supply chain and logistics. 

Let’s get familiar with more details in the table presented below: 

3PL Logistics 4PL Logistics 
They have control over their own processes, people, technology, services, and comprehensive operations.  They work on a contract basis and have no control over the operation or quality of the overall work.
You can have direct contact with your logistics team.  You don’t have direct contact with the logistics team, as they work as a middleman; they have contact with your 3PL logistics. 
Focus on your daily operations.  Focus on optimizing the overall supply chain. 
Usually, they provide physical logistic services.  They provide more consultation services.
They own assets needed for transportation or warehousing.  They need non-asset-based logistics. 

 

3rd-Party Logistics Order Fulfillment Process

Here, we’ve listed the 3PL logistics order fulfillment process in detail for a fashion retail store:

Receiving
They receive inventory so they can ship the product to your customers on time, which is also efficient and effective. During the receiving process, third-party logistics receive only the amount of inventory that they have the capacity to store. 

Third-party logistics contact their client to get further information like the time of arrival, quantity of goods, their types, and more. Then, this way, they start planning to make the delivery on time so you don’t have to face any problems later on. 

Warehousing
3rd party logistics provide you with modern and efficient warehousing options that are scalable as your business grows. Each kind of item has a dedicated warehouse space to meet its needs. 

However, it’s necessary to understand that not all third-party logistics companies have the same kind of warehouse. If you want to know about their warehousing facilities in detail, we suggest you contact them. 

Picking
This is where the actual process begins. When your customer makes an order, 3PL maintains a sheet where they record each shipping and transportation detail. Some of them also use top-notch technologies that can directly integrate with your platform. If integration is possible, the task can be done much quicker, which increases your efficiency. 

Packing
After they pick the items in systematic order, they start packing them accordingly. To make sure your items are safe and secure, they pack them with different packing materials, like: 

1. Bubble wraps
2. Boxes
3. Packing and sealing tape
4. Poly bags
5. Void fill
6. Packing papers
7. Air pillow

These packing materials protect your items during the transportation, packing, unpacking, loading, and unloading processes.

Shipping and Transportation
Now, they finally ship and transport your orders on your behalf. If the order can be made by vehicle, they transport it. However, if it needs to be submitted across different countries, they’ll probably ship your items. 

They’ll ensure proper coordination between the carrier and shipping speed, ensuring that your items reach their destination quicker and more efficiently. 

Returns
Third-party logistics also handles the return process properly if the client returns any items. However, they’ll make sure to follow your organization's rules and policies while taking the returns. In most cases, the return comes if the item is damaged or placed incorrectly. 

Most of them also label the returned items separately and place them in a different warehouse. 

Pros and Cons of Third-Party Logistics in Fashion Retail

Some of the pros of third-party logistics are listed as follows:

Cost-effective: Third-party logistic service providers work with many organizations and deliver a lot of goods at a time. As a result, they provide their clients with cost-effective and affordable shipping and transportation services. For a fashion retail business, bulk shipping can attain cost-effectiveness.

Fast delivery option: The systematic receiving, arranging, warehousing, and trained drivers help to do your delivery as soon as possible. They’ll make sure that your customers will get the goods on time, which will increase their satisfaction with your services. So, a retailer can provide expedited delivery options for enhanced customer satisfaction.

Systematic and organized distribution: The 3PL maintains every record and follows systematic procedures, so there’s little chance of errors. They’ll distribute your goods in a systematic and organized way without any hassle. 

Insurance and other benefits: If you choose a reliable and renowned logistic service provider, they’ll provide you with insurance and other benefits. So, if your goods get damaged during the order fulfillment process, you don’t need to bear any loss.

The cons of third-party logistics include the following: 

Difficulty tracking orders: As many orders in the fashion retail are made at the same time, they need to be arranged simultaneously. It doesn’t happen most of the time, but sometimes it is difficult to track the orders.

Lack of information exchange: This error occurs only when there is no proper communication between your retail chain and your third-party logistics. To eradicate this error, make sure to communicate properly.

Conclusion

If you want to carry on with 3PL logistics in the long term and make your fashion retail chain a success, make sure the logistics you choose have a reliable and trustworthy working policy. Know about their reputation, working mechanism, and reviews online. Choose those third-party logistics providers who will be able to match your business’s working goals and objectives. While choosing suitable third-party logistics for your company, make sure that they guarantee timely delivery, own up to their mistakes, and don’t charge you unnecessarily. We wish you all the best for your further order fulfillment process!