If your company is looking to expand sales channels to embrace omni-channel fulfillment, there are things you should understand before you get started. These include specific system and process requirements to properly expand from business-to-business (B2B) to business-to-consumer (B2C), and vice versa. In this article, we will look at the key requirements for each fulfilment channel to help you ensure you are set up with the unique capabilities that each requires.
Do you need to accelerate your ecommerce strategy due to the recent 2020 pandemic? You are not alone. There has been a dramatic increase in online orders and the bar for service excellence is set high.
The B2C shipping channel is very different from B2B. Smaller orders, faster turnaround, more labor-intensive overpacking and parcel processing require system capabilities and expertise to maintain your margins. The right third-party logistics (3PL) partner can guide you through these changes, while offering the eCommerce warehouse infrastructure and experience you need to grow your direct-to-consumer business.
You’re ready to outsource your warehousing operations to a 3PL that has the expertise, technology, and capabilities to handle your unique business day in and day out. One of the first questions a 3PL will ask is if you are interested in dedicated or shared warehouse services. Or, if you have been in a shared 3PL service contract for a while and your business has grown significantly, would it benefit you to move to a dedicated solution? In this article, we’ll briefly explain what each of these services entails and then examine ‘the four Cs’ to consider when choosing between the two choices.
It was a great day for your business – Costco agreed to carry your product, both in stores and online. Awesome!
Your team worked hard for this deal and, after the celebration, you went home for some much-needed rest before starting to tackle this great new opportunity the next day with your current third party logistics partner (3PL).
That night, a vivid dream transports you to your desk the following morning. You call your 3PL provider to begin discussing a rapid ramp-up process for planned volume increases. But instead of excitement about the new opportunity, your 3PL instead expresses concern and tempers your expectations about what can be done and how fast.
In modern baseball, the analysis of player performance has less to do with time-honored traits (e.g., power, speed, agility) and increasingly more to do with metrics. With these metrics, teams define the “best” players as those that perform well in key statistical areas like “on-base percentage” and “slugging percentage” – not necessarily who can hit the ball the farthest.
The same is true in the modern supply chain, where – like baseball analysts – retailers keep score and measure statistics. And that close scrutiny ultimately increases the pressure on you, the retail supplier.
3PL partnerships work best when both parties are engaged and understand each other. Like any relationship, it takes some work to get to the ideal level of partnership. The 2017 Annual Study on the State of Logistics Outsourcing published by Dr. C. John Langley stated: 91% of 3PL users and 97% of 3PL providers reported that their relationships are successful and that their work is yielding positive results.
Following are three keys to establishing an effective successful relationship and avoid a costly breakup and transition.
You realize that partnering with a 3PL service provider can save you money and expand your capabilities. Yes! Good idea! Partnering with a 3PL is a smart option to take your business to the next level with a variable cost structure, flexible capacity along with technology and expertise to improve your supply chain. What are some keys to get the solution you need?
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