Whether you’re a micro business or a start-up looking to scale, choosing the right 3PL partner for you can make all the difference. You might have your own warehouse pick-and-pack operation and are seeking to harness economies of scale by partnering with a 3PL, or you may be looking for a fulfilment service that ticks all of your boxes. Either way, it can be daunting, and there is a lot to think about. Our Ecommerce Experts here at Kammac have put together their 5 top tips for choosing a new fulfilment partner.
Transparency
When choosing a fulfilment partner, aim for transparency. Find a partner who values straightforward agreements, encourages sharing data, and believes in open communication. Starting with pricing, don’t be afraid to ask questions that will reveal any hidden charges or unexpected value-added pricing.
A strong partnership requires transparency from both sides, so have all your current sales data ready to give to your fulfilment partner. Including aspects such as; forecasted data, bestselling products, and storage requirements. This ensures the team can provide as many fixed costs as possible, saving you from any surprises in your invoices.
Ask them to provide a Service Level Agreement along with their Terms and Conditions. Keep an eye out for details on managing your account. Will there be a specific focus on this, including quarterly reviews with a dedicated account manager? Clear communication will lay the groundwork for a productive and cooperative partnership.
Onboarding Support
The transition to a new fulfilment space is daunting, but your new partner should be adept at creating a comfortable transition by working with you through any challenges. Spend time with your dedicated project manager to create a plan with goals and milestones that everyone is happy with, setting the stage for a long-standing successful partnership.
When there’s a strong understanding between you and your fulfilment partner, it helps avoid additional hiccups or delays in operations. Understand that when onboarding with a new partner and moving into a new space, it’s not about having zero disruptions but about how your partner deals with any issues that arise.
Integration Expertise
Each ecommerce business will have its own individual integration needs, so it’s crucial to find a fulfilment partner that is tech enabled.
Note: Some 3PLs will have an off-the-shelf WMS and few standardised platform integrations. Others may have a proprietary bespoke WMS and Order Management Systems (OMS), with multiple ecommerce integrations for platforms and shipping.
They may be able to integrate with retailers’ bespoke systems however this may require development time. You may want to have a conversation regarding development expertise.
Some common ecommerce platforms are:
- Shopify
- WooCommerce
- Amazon
- eBay
Also, assess your partners ability to smoothly integrate your orders into their systems, including connections with carriers and Transport Management Systems (TMS).
Ensure you’re aware of any fees that may occur when integrating your platform with their Warehouse Management System (WMS). Understand the requirements for inventory stock takes and look for a partner who will guide you through the integration process. This way you can ensure everything works together smoothly for a well-coordinated and efficient operation with an emphasis on inventory management.
Solution Design
An important aspect not to overlook is the warehouse space that your goods will occupy. Is this organised as per your SKU velocity report? This includes making cost-effective decisions for the placement of high-demand products within the operation.
Does the storage and picking space perfectly fit your product? A flexible partner understands and caters to your specific needs, whether it’s picking methods, layouts, or specific equipment. Don’t be afraid to ask about important elements like pick faces, staff training, and ensuring a smooth workflow. Remember, even the little things matter a whole lot! If you have any questions, feel free to ask.
Setting You Up for Success
Make sure your partner is transparent and keeps you in the loop. Look for partners who value open communication and offer detailed reports like End-of-Day (EOD) or Start-of-Day (SOD) reports. If you have specific reporting preferences, check they can provide updates in a way that suits you best, whether it’s through portal access or customised updates. A partner with internal control measures can quickly address any operational hiccups or delays.
You might also consider how strong your partners relationship is with their couriers? Is it strong enough and flexible enough to overcome unavoidable challenges, such as weather?
Finally, establish Key Performance Indicators (KPIs) to monitor performance, such as picks per hour. Verify the availability of value-added services, like gift wrapping, aligning with your specific requirements.
Remember, that finding a long-term fulfilment partner isn’t just about meeting your ecommerce company’s needs. The best 3PL is more than just a service provider – they become a partner on your business journey, working together to achieve your goals. They lend their expertise; they go above and beyond to exceed your expectations, add value, offer continuous support, and help you navigate challenges. This fosters a collaborative and long-term relationship, ensuring mutual success through communication, which is vital for both your business and customers.