3PL Fulfillment Process: Here's How We Do It

3LP is an increasingly popular service for eCommerce businesses of all types.

3PL is an outsourced fulfillment solution that offers cost-effective inventory management, order processing, and shipping services. In short, third-party logistics services manage, store, and distribute products on behalf of online retailers.

But how exactly do they do it? What goes on behind the scenes of 3PL fulfillment?

In this blog, we’ll take an in-depth look at the 3PL fulfillment process, from receiving inventory to shipping orders. Read on to learn more about the 3PL fulfillment process. 

3PL Fulfillment Process

Different 3PL fulfillment companies offer various services and solutions. However, they all follow a similar set of steps when it comes to fulfilling orders.

Let’s take a closer look at the basic steps involved in 3PL fulfillment.

Receiving Inventory

When businesses use 3PL companies, they will begin by transferring their inventory to the 3PL provider.

This could involve anything from simply dropping off products at a warehouse to having them shipped directly to the 3PL provider.

3PLs require you to inform them about the type and quantity of products you are sending beforehand, so they can effectively log and store them.

Once the products have been received at the warehouse, the 3PL provider will scan and log each item into their system.

Moreover, the products go through an inspection and verification process before getting into the inventory. This ensures that all products are in good condition and ready to be sold and shipped.

Finally, the products are placed in designated spaces in their warehouse. 3PLs make special arrangements to make these spaces safe and secure so your products remain in the best condition.

Picking the Ordered Products

Once your products receive an order, the order fulfillment begins. Order fulfillment consists of "pick, pack, and ship." Picking the products is the first step in order fulfillment.

Some 3PLs use software programs that integrate with your online store. So when customers order a product, the 3PL is notified in real-time. This helps them quickly and accurately pick the items that a client has ordered.

Once the 3PL is notified about the online order, it will locate the ordered items in its warehouse and retrieve them for shipping.

This could involve picking individual items from shelves or using automated systems such as ASRS (automated storage and retrieval systems). This helps ensure accuracy and speed up the process.

Packaging

After the 3PL has picked the products, they’ll need to be packed. The packaging materials used will depend on the products and the client's preferences.

The 3PL may use packing material such as boxes, bags, envelopes, or other options. They ensure that the items are securely packaged and ready for shipment. 

Some providers even provide specialized custom packaging services for an additional charge.

• Good packaging accomplishes two main goals:
  Protect and secure the integrity of the product
  
• Achieve the lowest possible dimensional weight to make shipping cost-effective

The 3PL can also include any extra materials with the packaging, such as product information, returns forms, and promotional materials.

Shipping Orders

Once the products have been picked and packed, they need to be shipped to the customer’s doorstep. 

3PL providers usually have partnerships with different shipping carriers and offer several shipping options. This allows them to choose the most suitable option depending on their budget and deadlines.

The 3PL will then print shipping labels, prepare documents, and arrange for pickups. They also take care of tracking numbers and other customer service inquiries regarding shipment status or delivery times.

At the end of the process, customers receive their orders on time and with all the necessary information.

Managing Returns

Some 3PLs also include returns management as an extra benefit.

Returns can be a major headache for online stores, but 3PLs make the process smoother and less time-consuming.

They will handle any customer inquiries and complaints about returns, inspect any returned items to verify their condition, provide quality assurance feedback to the merchant, and even repackage/restock sellable products.

This helps ensure a smooth customer experience and saves you time and money. 

Watch this short video explaining order fulfillment:

Conclusion

Working with a third-party logistics company is a great supply chain solution for any online store. 

Not only does this make the process smoother and more efficient, but it also allows you to focus on other aspects of your business.

This blog introduced you to the basic steps involved in order fulfillment. Knowing these steps can help you understand how 3PLs work and choose the best 3PL partner for your business. 

At 3PL Fulfillment Prep, we go the extra mile to make each of these steps more efficient.