We live in a time of instant gratification, and, thanks to Amazon, it also includes almost instant delivery. From pizza to perfume, retailers need to keep up with the demands of consumers and this now includes delivery. Consumers want to know that what they want is just a few clicks away and expected within a matter of days, hours or even minutes. Free shipping is no longer a welcome perk but expected.
With the evolution of the logistics industry, there are a range of options available to savvy retailers. From home delivery, pick-up points, parcel lockers, to click and collect, delivery is a key part of the customer experience.
Pick, Pack, Ship
When it comes to 3PL, the picking, packing and shipping of stock is essential to a positive customer experience. If goods are packed incorrectly, in poor packaging and delivered late or to the wrong address, customers can quickly decide to shop elsewhere.
But how do you select the perfect 3PL partner?
There is no right or wrong way to approach the selection process so long as you are diligent and understand what values are important to your business and what added benefits you can negotiate.
Remember, It’s not all about cost. Sometimes a higher cost can pay long term dividends to ensure your goods are delivered in the manner that your brand conveys.
Scale
When you have the right 3PL partner, you can easily flex and scale as required. There can be no limits on your business growth and the size of a warehouse should not be one of them! Your 3PL partner should have sufficient space for storage and fulfilment in addition to capable software systems that can link into your online store.
Equipment
Logistics is something you never think about until it stops working. Depending on your product, you might need to work with a partner who has appropriate equipment for storage, picking, packing and shipping. How many people are employed and does the team understand your product? Is there a barcode or verification process in place to ensure stock and order accuracy in real time?
Fulfilment Centre Location
When getting started, you should identify the regions within Europe that you want to ship the majority of your products to. Is it just one market, or multiple locations? Are these locations all EU member states? Does the 3PL partner have multiple sites or just a single location from where they ship everything? If you plan to ship to the United Kingdom, you must use a registered address within the country.
Number and type of customers
Is your 3PL partner offering end-to-end fulfilment and can you see their client portfolio? Is it trusted by other brands in your sector? What is the basic service level agreement (SLA) and does this cover everything you require? A basic SLA should be outlined during the sales process and cover items such as same day fulfilment, stock rate accuracy, order cut-off dates and times, as well as customer service response rates for handling returns.
Technology
What technology does the 3PL partner use to manage inventory, orders, and shipments? A Warehouse Management System (WMS) should optimise and integrate with your eCommerce platform and other tools you use. If the team relies on manual pick, pack, ship – you know it’s not a match for your growing business.
Customer is King
You need a 3PL partner who is as passionate about your customers as you are. This should include excellent services from packing to managing returns. In addition, you should be able to keep your customers informed at every step of the delivery journey. This communication will ensure a frictionless customer experience and if delivery is delayed, at least your customer will know when to expect their purchase. Free delivery is almost expected by consumers, but it’s not free. It comes at a cost to the retailer that must be managed within strict margins. Your 3PL partner will play an important role in the management of your costs in this area.
Branding
Some eco conscious fulfilment centres are working to reuse packaging from other 3PL centres. This is great for the circular economy, but perhaps not appropriate for your goods. Your 3PL partner should be able to facilitate branded boxes, add marketing inserts to orders and supply appropriate protective packaging where required.
Accuracy – when under pressure
A good test for your future 3PL partner should include questions such as:
- What was the same-day fulfilment rate during the peak season (typically Black Friday)?
- What was the accuracy rate during this period?
- How does your team manage returns?
- Where do you track fulfilment accuracy? Is this managed by a technology system?
- How quickly can you expect replies when you have a question?
Go with your gut
Choose the 3PL partner that is best for your business now and into the future. Discuss your growth plans with your 3PL partner of choice to ensure they understand what your vision is and if they can handle your growth plans. When making this decision, it’s not just about price. Value is everything, especially when margins are tight.
A 3PL partner is just that – a partner. They should care about the customer experience as much as you do and work to become an extension of your team and a key part in the success of your eCommerce business.
Focus on Growth
When entering a new market, it can be challenging to keep the various plates spinning (growth, compliance, customer loyalty etc). We believe every ambitious retail organisation needs a partner who can manage all the compliance matters.Removing admin overload saves time and keeps your team focused on the business drivers that deliver growth.
Taxmatic automates VAT calculations, filings, and payments for eCommerce retailers selling in EU and UK markets. It integrates seamlessly with eCommerce selling platforms to access sales order data in real time. The process includes secure payments wallet technology to complete sales tax remittance and manage refunds. Our customers have the peace of mind that comes from full regulatory compliance. Plus, the benefits of eliminating manual processes. Gaining more time to expand their online business in new international markets.
