The emergence of e-commerce and the ability to shop for virtually anything with just a click has made efficient supply chain management crucial. With a vast array of product offerings and faster delivery times than ever before, online-only retailers have become the go-to shopping destinations for many. To ensure timely deliveries, e-commerce stores must address issues related to inventory, packaging, warehousing, shipping, and order tracking.

Logistics in online shopping can be complex, and that's why online retailers often rely on third-party logistics providers, also known as 3PLs. These service providers specialize in various aspects of the supply chain, including inventory management and product delivery.

3PL services encompass supply chain management, warehousing, consolidation services, and order fulfillment. E-tailers cannot afford to maintain in-house logistics services to handle all these functions for order fulfillment. E-commerce apparel sites, in particular, rely on fulfilling their promises of quick delivery while ensuring the products arrive in good condition. Here are some of the key services that 3PL providers primarily focus on:

Warehousing: With the increasing number of online-only stores in the apparel e-commerce industry, having physical space to store products is essential. 3PL services offer warehousing solutions without the need for e-tailers to invest in physical locations or manage the technical aspects of running such facilities. This cost-effective approach allows e-tailers to share overhead expenses among multiple clients.

Consolidation Service: Freight or cargo consolidation is one of the services offered by third-party logistics providers. It involves combining many small packages into one large package, significantly reducing shipping costs. This is especially beneficial when there are numerous orders heading to a specific location.

Order Fulfillment: Fulfilling orders accurately and efficiently is crucial to customer satisfaction in online shopping. Third-party logistics providers ensure that packages reach the right destination, at the right time, and in good condition.

Value-Added Services: 3PL providers offer value-added services such as repacking, sub-assemblies, and just-in-time services to meet the unique supply chain needs of retailers. They employ advanced technologies like Warehouse Management Systems (WMS) and Systems Applications and Products (SAP) software for inventory tracking and order data processing, respectively. Additionally, 3PLs manage returns through reverse logistics and product lifecycle management services.

Many small and medium-sized online apparel retailers benefit from these 3PL services. The online apparel market is flooded with new companies daily, and the need to deliver products quickly has become paramount. If an e-commerce site cannot fulfill orders within 48 hours, customers may opt for competitors or choose to buy from physical stores. To stay competitive in such conditions, partnering with professional 3PL services is essential for e-tailers.

The following are the benefits that make 3PL the secret weapon in achieving customer satisfaction:


1. Secure & Reliable: A 3PL system has information of multiple e-tailers and lets them view their mobility with the warehouse. Moreover, the 3PL manages efficiently storage and logistics of a product without any hassle. This lets online retailers breathe a sigh of relief without having to manage the post purchase processing of orders.


2. Transparency: Most e-tailers offer the facility to track and trace the orders to their customers, which can be possible only with the help of a good 3PL company. They also provide the benefit of accessing their data from any place and at all times.


3. Flexibility & Scalability: Third party logistics provide the flexibility and scalability to small, medium and large scale e-tailers. 3PL deliver products both with scale and dependability without compromising on the service or quality.


Supply chain is of the utmost importance to apparel retailers doing business online and in-store. Any imbalance in the chain can disturb the product flow, drain profits, and result in customer dissatisfaction. Transport is the biggest challenge faced by minor and major e-tailers everywhere. A third party logistics provider with smart solutions and their efficient management make everything work better.


3PL companies lessen the burden and let e-tailers concentrate on their core competencies, driving efficiency, and supporting more profitable operations. Rising incomes of the middle class in emerging economies and rapid assimilation of e-commerce are posing new charges on lengthening supply lines and inflation in conventional low-cost manufacturing countries. Having an organized, streamlined, and the best possible supply chain operations make 3PL companies the backbone of online shopping.


References:


1.      Logisticsviewpoints.com

2.      Inboundlogistics.com

3.      E-commerce.about.com