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Using a 3PL warehousing company can be one of the best business investments if your organization chooses the right company and implements the partnership correctly. This strategy can lower your 3rd party warehouse fulfillment and shipping costs, help improve the overall quality and speed of business operations, enter new markets, and tap into industry expertise.
Unfortunately, finding the best 3PL warehousing companies can be challenging. It can be highly time-consuming to sort through false claims and pose difficulties when verifying the truthfulness and validity of their available information online. Location restrictions may make it hard to find the perfect fit for your organizational situation in your region. You need a proven warehouse service that will provide high-quality work at an affordable cost. Thankfully, you’ve come to the right place because we take the hassle out of finding the best 3PL warehousing companies for you.
Anytime you select external resources for your business, it can impact operations, good or bad. However, if you make the wrong choice in a 3PL warehousing company, your organization can see significant problems that result in a profit loss and a decrease in business. Some unfavorable issues that can arise include miscommunication through departments, inventory issues, lost products, and incorrect orders for your customers. Your organization may have shipping and receiving delays of product or accounting errors, which can all lead to a loss of trust and reputation in your industry.
Fortunately, our service saves you time because we’ve been collecting data and screening 3PL warehousing companies since 2005. We can efficiently perform a search and provide you with a short list of the best options for your needs. We are unbiased and do not have business connections to warehouses that favor some choices. We put all possible warehousing companies through a rigorous screening that includes business assessments, financial checks, and customer reviews to narrow down the best options. Our team has extensive experience working in the 3PL warehousing industry for decades and has run third-party warehousing companies, so we are experts in your organization’s needs.
In addition, our service won’t end up costing you like other referral services or brokers you find. We charge the warehouse companies a small, one-time fee to get matched to you. This way, your pricing is not impacted, and you pay nothing extra. We look at several elements of these 3PL warehouses, including learning all of their capabilities, the types of products they handle, how they perform, and what volumes they specialize in. We look at numerous key success factors, including customer volume, years in business, customer retention rate, annual order volume, and accuracy rates for inventory, orders, and shipping.
Our service is simple to use. Just tell us about your organization’s needs and what you’re hoping to accomplish, so we can get started on finding you top results. Then, you will approve our short list of up to 5 possible 3rd party warehousing companies so we can match them with your organization. Finally, your personalized matches will reach out to you with their quotes and compete for your business.
Alternatively, many businesses do not understand everything there is to know about 3PL warehousing companies. So you can leave the hard work to us since we can provide you with all the information you need to learn about 3PL warehousing companies, whether it will benefit your business, the average costs, and how to find the best 3PL warehousing companies. Therefore, we’ve created a comprehensive guide on warehousing services to help you successfully navigate the industry.
It’s amazing what most consumers take for granted these days. Shoppers expect to find shelves stocked with merchandise from competing brand names each time they walk into a local store. They expect timely delivery of their goods when they shop online, and they expect to find those shipped goods in excellent condition upon arrival. In some cases, they even expect their products to be delivered to the store free of charge when it would cost more for home delivery.
What many of those shoppers don’t fully understand is how much work is involved in getting those products onto store shelves and those packages from the manufacturer, then to a 3PL warehouse, and eventually to their doorsteps or their local store. You may understand what goes on behind the scenes a bit more because you have a product to sell and an interest in getting your products to those local stores or the doorsteps of your customers. One way of doing that efficiently and within your budget is to work with a third-party logistics warehouse, otherwise known as a 3PL. These companies aren’t all the same, but they do have one thing in common: their goal is to help you manage the logistical side of your business successfully.
Any business interested in shipping, storing, or moving goods can benefit from working with a third-party warehousing service. The problem is sorting through thousands of companies that fall under this umbrella to find one reputable and well-equipped company that will cater to your specific needs. Some companies provide a full spectrum of services and can help their clients with all of their logistic needs while others focus on select services within the logistics field. Some will work with businesses of all sizes while others favor large corporations. Still others focus on companies within select industries or those shipping specific types of products. For instance, some warehousing services will only work with companies shipping frozen foods while others specialize in live goods.
Some of the services that a 3PL warehouse may offer include:
3PL Warehouses offer more services than standard “warehousing services companies”, especially regarding to the shipping and logistics functions. Below is a detailed definition of a warehouse service and how they differ from 3PL warehousing services and other pick and pack and fulfillment services.
Warehousing services include, but are not limited to, receiving orders from a business’s customers, locating the required products from inventory, preparing the client’s order for shipping, and ensuring the product is shipped to the correct location with the correct documentation and packaging.
Receiving the orders from the business’s clients can be via online ordering systems linked to the warehousing services computer inventory systems or by various other methods depending on the business’s capabilities. Business’s may do their ordering via call centers, catalogs, or strictly through their website.
Locating the products in done either electronically, by hand, or by heavy equipment depending on the products being ordered and the facility’s capabilities. Some orders may use different methods even for the same client.
Preparing the orders for shipping can be done either electronically, by hand, or a combination of the two determined by the quantities being processed and the conditions required by the product. Some products may need special handling depending on fragility or size.
Product shipping includes managing the shipping methods used or required contingent of client needs and the product itself. Managing electronic tracking procedures and quality control to effectively diminish and report errors. Also, this includes the client specified shipping methods and special procedures requested.
More warehousing services may be offered based on the warehousing company’s capabilities with regards to manpower, space available, and implemented technologies. The above services are fairly universal when it comes to warehousing companies in general as far as the minimum services they should be able to provide.
Businesses looking into an outsourced warehousing company solution should understand their wants and needs to ensure the company will be able to provide for their clients in a satisfactory manner.
A Full-Service warehouse will offer many different possibilities for your small or growing business. Generally, a full-service warehouse will do more than just simply store your goods. They will perform all of the additional services needed to ship your goods to your end customers. What else does a full service warehouse do?
Understanding what things warehouse services have to offer, can help you make the right decision on which warehousing company is right for your business.
A public warehouse may store your goods for a limited time. They provide you with space and you provide the equipment and people to ship items. Furthermore, public services store goods and products for multiple clients in the same warehouse. A Contract Warehouse handles the shipping, receiving and storing of goods on a contracted basis and oftentimes uses the entire warehouse space for one single client.
The following are basic offerings of a warehouse service:
Pick and pack warehouses specialize in processing small to large quantities of product, disassembling them, and shipping the product for each destination and re-packaging with shipping label affixed and invoice included.
Storing, Transporting and Shipping Goods.
In addition to storage, warehouse services offer shipping of cartons (small parcel), pallets (LTL and Truckload Shipping) and container freight shipping.
Examples of fulfillment operations would include operations that process shipments for mail-order catalogs, internet stores, or repair parts.
Finding a Warehouse that offers Full Service can help save you time and money. There are many companies that offer Pick and Pack, and Order Fulfillment. What else do they offer? Do they have the technology present in order to specially label your items? Are they integrating with the best shopping carts? How smooth is the integration?
A full service warehouse company will offer you many different options and ensure customer satisfaction, from receipt of your goods, to shipping your goods, to handling shipping errors.
Current trends show that more than 78 percent of companies in Northern American and more than 94 percent of companies in Western Europe now use 3PL services. This is because most businesses want to leave their logistical operations in the hands of knowledgeable experts while they focus on aspects of their business in which they are the experts. If you have goods that you need to store and transport across the country or internationally, you are likely to benefit from connecting with at least one third party warehouse as well.
Online shopping is one of the fastest growing industries today. Everything from electronics to grocery is just a few clicks away. With several new online retailers coming up every month, e-commerce giants are also feeling the heat of such competition.
On the other hand, consumers are also becoming increasingly demanding. The consumer satisfaction ratio is going up. As a result, many online stores have started providing same-day delivery.
To ensure timely deliveries, e-commerce stores need to handle issues related to inventory, packaging, warehousing, shipping, and tracking carefully. Having a location near their core consumer base can help ensure speedy delivery. That’s where 3PL warehousing services companies come into the picture.
Setting up a complete warehousing and shipping system from the ground up is a costly affair. Your business has to bear the burden of various costs including infrastructure, advanced technology, transportation, and employee compensation.
You will also need to invest a lot of time and energy into setting this up and running it every day. But, outsourcing this work to a pre-established 3PL warehouse organization will save your time and money.
Most third-party logistics warehouses also charge you based on your usage. If you have a warehouse of your own, you will be spending a lot of money on its maintenance and repair regardless of whether it is in full, partial or no use at all.
Similarly, you will also be paying for all your shipping, warehousing, and tracking technology and employees irrespective of their actual usage. So, hiring a 3rd party warehouse is the best way to save substantial money and time.
Setting up comprehensive inventory management and shipping system requires you to create a network of warehousing companies, couriers, and shipping centers across the globe, especially if you are going to serve a global clientele.
It is not only expensive but also time-consuming. A third-party warehousing company, however, has access to a vast network of resources to meet your daily shipping and warehousing demands immediately.
A 3PL warehouse can quickly integrate your supply chain into the markets where your business doesn’t have an established presence. Thus, it offers better delivery coverage compared to your in-house warehousing system at a lower cost. You can grow your business without diverting your financial resources.
Warehousing companies can increase consumer satisfaction in two ways. It will allow you to focus on your core business activities and ensures efficient delivery. Many companies want to focus on what they do best which isn’t shipping and warehousing.
That’s why keeping your focus on in-house warehousing activities will undermine your abilities to deliver core services. For example, an online t-shirt printing business can focus on creating better and new t-shirt designs and strengthen product quality if it outsources the shipping to a third-party logistics company.
Plus, owing to their extensive resources and well-trained staff, a 3PL warehousing service provider ensures risk-free and timely delivery to your consumers. You can also get a host of value added services such as repacking, gift-wrapping, sub-assemblies, and just-in-time services to improve your consumer satisfaction considerably.
In the early days of e-commerce, consumers used to buy online to avoid standing in long queue at stores or driving to the nearest mall. It was all about shopping from the comfort of your coach. So, using snail mail or postal delivery services could work.
Today, however, customers need e-commerce retailers to provide same-day delivery or express delivery. But, a warehouse service can provide your business with speedy delivery.
They already have a well-established network of warehouses, advanced technology, and trained staff. They can keep track of a package from start to end and readily overcome international shipping issues. Plus, their credibility depends on delivering packages to the right place, at the right time, and in proper condition.
Many online businesses have to scale up and scale down their operations according to the market fluctuations. Your business will experience many busy and slow times during the year. For example, your orders will pick up during the holiday season.
Usually, a third party warehouse service provider will allow you to scale space, labor, and transportation according to your current inventory. Thus, you can rent out more warehouse space during the holiday season and less space during off seasons. They also offer freight or cargo consolidation.
As your company continues to grow, you need to have the proper space and equipment to deal with your expanding inventory. A warehousing company provides this for you so you don’t have to invest your own money. However, it’s always important to thoroughly vet your 3PL warehouse first to assure they’re continuously scalable for your company.
When you need more shipping flexibility as well, third party warehouses can provide it without barriers. Almost all warehouses have locations in strategic places for decentralized distribution.
Along with the networking, you’re gaining valuable expertise using a 3PL warehouse. All outsourcing gives you experts who know what they’re doing so you gain a stronger competitive edge.
With business being more competitive than it ever has, you need a staff who understands the latest technologies and inventory management procedures.
Making your customers happy with efficient shipping is the heart and soul of keeping your business afloat long-term. Especially if you’re a startup, you don’t want shipping mistakes that set you off on the wrong foot. In today’s world, you need the fastest shipping procedures you can find to keep up with customer demands.
By keeping your logistics running optimally, your customers will deem you reliable rather than assuming improvement later. Most customers don’t give those second or third chances.
Will using a Third Party Logistics Warehousing company save my business money? The answer is that it absolutely can. However, you must do two things in order to ensure that you’re getting the best prices and to ensure that you’re making a proper comparison. First, you must make sure that you look at all costs involved in doing it in house. Frequently, companies don’t think of all of the costs involved. For example, do members of your management team spend time on these functions? If so, you have to make sure you’re incorporating this into the equation. Second, you’ve got to make sure that you use the bidding process to your advantage. Making warehousing services compete for your business enables you to be sure that you’re getting the best rates possible. That’s where we come in! We help connect you with multiple, competitive, FREE Quotes.
A great number of product based businesses consider outsourcing with a third party warehousing company as a viable option for handling the warehousing and distribution of their product. But once they begin researching these third party warehouses, they oftentimes get hit with “sticker shock” in terms of storage and fulfillment fees. They often think to themselves, “Is it cost effective to outsource?” Or better yet, “Will cost savings be realized by outsourcing warehousing and fulfillment?” These are extremely important questions that need to be analyzed from a detailed financial perspective in order to gain appropriate insights to make the best decision.
One of the most difficult aspects of any in house versus outsourcing financial analysis calculations is the gathering of ALL “in house” costs. If any of these costs are left out of the equation, you’ll surely not be able to gain the proper perspective in your decision. What kinds of costs need to be included?
Some of the most commonly overlooked areas are equipment purchases and adequate measures of management support related to the fulfillment process. Without a thorough analysis, you’ll potentially be left thinking that outsourcing isn’t the best option when in fact using a third party warehousing solution would be the best way to go.
In addition to forgetting to include certain in house costs, another common mistake is not accounting for other added benefits of outsourcing your third party warehousing. Some of these “intangibles” can really provide significant savings. They include:
Properly accounting for all costs and benefits will help you make the best decision regarding the use of third party warehousing. Don’t be short sighted when looking at the pricing proposals from warehousing companies. Take into account all costs and you’ll set your business up for the greatest success possible.
The number of 3PLs in business today is good and bad for companies with logistical needs. It’s great because there are many reputable companies offering competitive prices and fighting for your business. It’s just not so great when you’re trying to isolate the best companies that can meet your needs. That’s where our network comes into play.
We help you secure quotes from the best 3PL companies that provide services in line with your company’s current needs. We do this free of charge, and we act quickly because we know that you have deadlines to meet and customers to please. The top fulfillment companies that we work with also understand that you demand advanced knowledge, proven processes, and dependability because you take your business just as seriously as they take their own. That understanding and dedication to excellence and customer satisfaction is why they pass our rigorous testing process and are included within our carefully selected network of third-party warehousing companies.
Analyzing 3PL company strengths and weaknesses is necessary if you want to find one that works well with your niche industry. If you’re new to searching for warehouse companies, you may think all fulfillment centers are alike. They really aren’t, and many have designs for specific companies. You may even find a few that say they’re suited for specific industries when they really aren’t.
Just like you would for any business, proper vetting helps you choose the right warehouse for your company. Doing this only helps yourself since having a good relationship with your 3PL warehouse is important to keep working with them long-term. You don’t want to have to switch to another warehouse service midstream just because you didn’t take time to study the pros and cons.
So what are the biggest strengths and weaknesses you might encounter in a 3PL during the vetting process? Almost all of them have good and bad elements, though weaknesses can sometimes mean something positive.
Management principles in most 3rd party warehouses have various strengths and weaknesses. The most critical thing to find is whether the management in your warehouse has real vision for the future. Are they willing to tailor their services for your company structure?
If management treats their warehouse like a commodity service, it’s best to move on to another. It’s a must to have management with intent to expand and continuously update their technology to keep up with demands.
Also, check into how centralized the management is. When or if they expand to other geographic areas, management could become more decentralized and cause more logistics confusion.
A third party warehousing company that doesn’t invest in the latest warehouse technology obviously shows a major weakness. Most warehouse services do, though you have to make sure they’ve streamlined it and integrated it into every department.
Top-tier technology is only as good as how it’s used, and having examples in how the 3PL warehouses uses it can help you get faster answers on their strengths. More so, you can determine whether they keep up on the latest tech updates so they know what to invest in down the line.
How much training has the warehouse company given to their staff lately? Do they update training regularly, or do they wait several years before new training takes place?
A staff that’s continually learning is a benefit to the warehousing company you work with because they’ll know every procedure without having to ask questions. Any employee with confusion on how to operate technology only leads to downtime. That can’t happen in a warehouse where speed is mandatory to keep pace with shipping demands.
Make sure your third party warehouse has capable people working, including proper safety training to eliminate any risk of injury.
Do you know exactly where your 3PL’s location is? Many of the best ones are near major ports, highways, and airports. If they’re in a more remote area that takes an hour longer to get to transport service, it can matter in how fast a delivery takes place.
Geographic location also matters in any potential risk or danger from nature. Is the warehouse in an area where hurricanes frequently occur? A warehousing service in Southern California may have risks from earthquakes.
These strengths and weaknesses can help you form a backup plan if something were to happen. Asking your 3PL warehouse if they have a disaster recovery plan in place is just as important as asking about management, costs, or technology.
When choosing a 3PL Warehouse company to manage all of your warehousing and fulfillment, we highly recommend keeping the following points in mind:
The first step is to take a look at what it costs you or what it will cost you to perform the Storage and distribution yourself. What is the cost of your space? How many employees does it take to run your Warehouse and what are the hourly rates of these employees. Remember to include benefits into this analysis. What are your shipping costs in house? This will be a vital factor in the analysis, as many outsourced companies will be able to offer very competitive shipping rates since they aggregate freight.
But the three most common mistakes people make when deciding between keeping the Warehousing services in house versus outsourcing are as follows:
We can help you find the best 3rd party warehousing company with the best pricing for you. Members of our management team used to work in the Logistics industry, so we know what to look for in a provider. We’ve pre-screened 3rd Party Warehousing firms so that you can get multiple quotes from quality vendors. But you might be asking yourself why should I use a Warehousing company instead of doing all of the Distribution, Warehousing and Shipping myself? And will it really save my company money by Outsourcing? What kind of Rates do these companies charge? Thankfully, we can help you answer these questions.
Should you use a Warehousing Storage organization to store and ship your goods for you? The main question here involves strategy. Is the supply chain the most critical component of your business? Is it a source of competitive advantage for you? If so, you may not want to outsource. Rather, it might be best for you to pursue Warehouse Rentals, obtain a commercial lease of warehouse space, and perform the logistics yourself. However, if you’re like most companies, distribution is important, but it’s not your source of competitive edge. These days many 3PL warehouses offer solutions that are extremely high in quality and extremely low in error rates. And by outsourcing, you won’t have to think so much about the storage and shipping of your product. You can spend more time on trying to grow your business.
First, most 3PL companies claim that they will do a great job for you, even if they don’t operate at a high level for other clients. It’s usually very difficult to find out how well a 3PL performs without a thorough knowledge of the industry and an understanding of the things that you must look for in a provider. Second, other “referral” sites claim that they can connect you with top 3PL firms. The problem, as we found through independent research, is that they don’t actually screen the companies. The truth is that our company is one of a kind in that we don’t allow every 3rd party warehousing company into our network. Rather, we conduct a through 5 point analysis before we accept a 3PL into our network. Most companies that we speak with don’t make the cut. You’ll be connected with high performing warehouse companies.
Instead of searching through website after website, making calls to each of your chosen providers, and then trying to gauge their respective offerings and make an ultimate decision, we make the process fast and easy. Simply fill out one simple form, and we’ll take your information and connect you with the most relevant and reputable providers that can meet you needs. You receive price quotes from 3PL warehouses within hours, and you’ll have the peace of mind of knowing that each provider has been pre-screened by former 3PL executives. Perhaps best of all, our service is FREE to you and there is no obligation to use any of our providers.
We use objective screening criteria so that we can identify the best warehousing services. Many other referral companies simply sign up any 3PL warehouse that is willing to pay them, or they rank 3PL’s in order of who will pay them the most money. We simply don’t use any of these deceptive practices. Rather, we remain fully unbiased. And we don’t collect any commissions from our third party warehouses. Instead, they simply pay us a small per lead fee each time we introduce them to a prospect like you. That way, you don’t have to worry about them increasing their service prices to you in order to cover commission payments.
We know exactly what to look for in a quality provider because members of our team used to work in the 3PL industry. We gained valuable experience and thus have the knowledge to understand your unique needs and connect you with providers that will not only do a good job but will also be able to perform the specific services you require. We understand that many people don’t understand the industry on the whole and need a resource to help them navigate the complicated landscape. We’re not only here to provider you with references for quality providers, but also as a resource for questions that you have about the 3PL industry on the whole. And for those of you that do understand the industry, we’re able to easily and quickly connect you with quality providers that have passed through intensive screening.
Since we’ve been providing quality referrals since 2005, we have had time to develop relationships with top notch 3PL’s all throughout the US, Canada, and the UK. We have an unmatched number of providers, so we can connect you with options in all areas of these three countries. And if by chance we don’t have an option for a particular remote location, we can reach out to our extensive network and find quality options quickly.
We help companies find the right warehouse service. No matter what your requirement (product, service needed, technology needed, location, etc.), we can narrow down a short list of companies for you to connect with and get free price quotes.
Prefer to search on your own? Find the best warehouse services in the US and Canada. Either fill out the form on our site to request quotes, or browse local data and options. Connecting you with the best local warehouse companies in the US and Canada:
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