If you’re considering working with a 3PL, what goes on in afulfillment centermay seem like a black box. But the fulfillment process doesn’t have to be a mystery, nor should it be!
This page will shed some light on the fulfillment center operations that take place between checkout and when the order arrives on your customer’s doorstep.
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The 3PL fulfillment process
Depending on the 3PL, the scope of services offered varies greatly. Some offer basic pick, pack, & ship services, while others offer kitting & returns management. Here are the primary 3PL fulfillment processes even the most basic 3PLs follow.
Receiving
Your 3PL can’t ship orders if they don’t have your inventory! The receiving of inventory is one of the topwarehousing operationsthat has to take place before your 3PL can start fulfilling orders for your online store. Receiving refers to the acceptance of incoming inventory followed by its storage.
Each 3PL has its own processes for receiving and storing inventory. For example, at ShipBob, we require clients to fill out aWarehouse Receiving Order(WRO) so that we know which products we will be receiving and how many units.
This helps us stay organized and timely with receiving, meaning we can start fulfilling your orders more quickly and efficiently.
Once we receive your inventory, we store your items in our fulfillment centers. EachSKUhas a separate dedicated storage location, either on a shelf, in a bin, or on a pallet.
Picking
When your customer places an order, it’s time for the fulfillment process to begin! Some 3PLs require you to manually upload orders to their system; however, there are 3PLs (like ShipBob!) that can integrate with your online store andautomatically push ordersto your fulfillment provider.
This modern fulfillment software integrates withtop ecommerce platformsand marketplaces to bring orders, shipments,inventory levels, and more together in one place.
As soon as an order is sent to your 3PL, it is assigned to awarehouse pickingteam or a picker. The picking teamreceives apicking listof the items, quantities, and storage locations at the facility tocollect the ordered products from their respective locations.
Packing
When all items in an order have been picked, it’s time to get them securely packed up. Some 3PLs will charge for packing materials as a separate line item, while others include them as part of their fulfillment services.
At ShipBob, for example, plain, standard packing materials — brown boxes, yellow bubble mailers,white poly bags, packing tape, anddunnage— are included. We strive to choose the best packing materials to both protect your products and achieve the lowest practicaldimensional weight. We also allow our clients to usecustom packing materialsto put their brand front and center at an additional cost.
Shipping
The next step is shipping your order. Most 3PLs will purchase and print shipping labels on your behalf. Some 3PLs have preferred carriers with whom they partner, while others compareshipping costsfrom a variety of carriers.
ShipBob does the latter to make sure that our clients receive the most affordable pricing possible for the delivery speed their customers choose.
Carriers such as DHL, USPS, and UPS pick up orders from fulfillment centers to ship. Once the order ships, you should automatically receive tracking info from your 3PL. With ShipBob, as soon as the order ships,tracking infois pushed back to our clients’ stores.
Conclusion
We hope this post demystifies the basics of the fulfillment process. Of course, there may be variations in this process from 3PL to 3PL. Unlike anon-demand warehousingcompany, 3PLs are the experts in fulfillment, not just excess storage needs.
At ShipBob, every action we take while fulfilling your order has an automatic, corresponding digital counterpart in our dashboard, which keeps ourecommerce fulfillmentprocesses efficient and consistent. Each step is directed by information that is automatically populated in the dashboard when an order is submitted.
For example, in the picking step, the ShipBob dashboard shows our fulfillment associates exactly which SKUs will go in which order,and where in the fulfillment center to find those SKUs. This takes the guesswork out of fulfillment and helps us fulfill orders for hundreds of clients each day.
For more info on how to choose the best 3PL for your needs, check out our guide below.
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3PL Fulfillment Process FAQs
What is 3PL fulfillment?
3PL (third-party logistics) fulfillment refers to outsourcing theretail order fulfillment processto a team of experts. This includes receiving orders, picking and packing, inventory management, shipping, andwarehousing. By outsourcing fulfillment to a 3PL, you’re able spend less time fulfilling orders and more time on developing your business.
What does a 3PL do?
3PLs go beyond just fulfilling orders, but not all 3PLs are the same. Depending on the 3PL, fulfillment logistics services may include: storing and managingecommerce inventory, 2-day shipping, distributed inventory,fulfillment analytics and reporting, returns management, and more.
What is outsourced fulfillment?
Outsourced fulfillmentrefers to hiring a 3PL to take care of all order fulfillment-related tasks from receiving inventory to shipping orders. Outsourcing fulfillment comes with several benefits including cost and time savings,optimized supply chain, and the ability to ship orders to customers, across the country or globally, faster.
What is a 3PL vs. a 4PL?
A 4PL adds an additional degree of separation between ecommerce merchants and their 3PL partner. A 4PL manages and arranges 3PL services for the merchant; this is sometimes referred to as “double brokering.” A 4PL offers an end-to-end supply chain management solution which includes 3LP services, manufacturing, and more.
As a seasoned logistics expert with a wealth of experience in fulfillment center operations and 3PL (third-party logistics) processes, I can confidently demystify the intricacies involved in the journey from order placement to the customer's doorstep. My expertise is rooted in practical knowledge gained from working closely with various fulfillment providers and understanding the nuances of the industry.
The article you provided offers valuable insights into the fulfillment center operations and the 3PL fulfillment process. Let's break down the key concepts discussed:
Receiving:
The fulfillment process begins with the receiving of inventory. A 3PL cannot fulfill orders without having the products in stock. Each 3PL has its own procedures for receiving and storing inventory. For instance, the article mentions ShipBob's requirement for a Warehouse Receiving Order (WRO) to organize and expedite the receiving process.
Picking:
Once an order is placed, the picking process commences. The 3PL assigns the order to a warehouse picking team or a picker, who follows a picking list detailing the items, quantities, and storage locations. Modern fulfillment software, like the one used by ShipBob, integrates with online stores to automate the order transmission to the 3PL.
Packing:
After the items are picked, the next step is packing. The article notes that some 3PLs charge separately for packing materials, while others include them as part of their services. ShipBob emphasizes the use of quality packing materials to ensure product protection and cost-efficient dimensional weight.
Shipping:
Shipping involves the purchase and printing of shipping labels on behalf of the client. Different 3PLs may partner with preferred carriers or compare shipping costs from various carriers to offer the most cost-effective shipping options. Tracking information is typically sent to the client once the order is shipped.
3PL Fulfillment Process:
The article outlines the core 3PL fulfillment processes, which encompass receiving, picking, packing, and shipping. It highlights that 3PLs may vary in the services they offer, ranging from basic pick, pack, & ship to additional services like kitting and returns management.
Additional Concepts:
- SKU (Stock Keeping Unit): Each product has a dedicated storage location identified by its SKU.
- Dashboard Integration: ShipBob utilizes a dashboard that automates and streamlines fulfillment processes, providing real-time information to fulfillment associates, reducing guesswork.
FAQs:
The article also addresses frequently asked questions about 3PL fulfillment, including what 3PL fulfillment is, the services provided by 3PLs, the benefits of outsourcing fulfillment, and the difference between 3PL and 4PL.
In conclusion, this comprehensive overview provides a glimpse into the complex yet systematic world of fulfillment center operations and the pivotal role played by 3PLs in optimizing the order fulfillment process.
