Frequently Asked Questions
Third party logistics services, or 3PL services, can be a highly effective solution for businesses as they look to scale. Over time, many businesses are faced with restrictions on their growth, one that is often overlooked is the cost, space and human resources required to effectively manage their logistics and warehousing. This is where 3PL companies can provide the additional tools, infrastructure and expertise to combat these issues.
At Ballina Byron 3PL Warehousing, we handle all aspects of 3PL services specialising across ecommerce businesses. All businesses have their own preferences and requirements, but we’ve found in our 10+ years’ experience that ecommerce businesses in particular are especially focused on the last mile delivery. How quickly orders are dispatched, how it arrives to your customer and how easy the returns process is can be the difference between a customer ordering from you again or switching to your competitor.
The following are some responses to some of the questions that we’re frequently asked by prospective clients.
WHAT IS THIRD PARTY LOGISITICS (3PL)?
Essentially, it’s outsourcing the logistics, freight and warehousing operations of your business to a third party who specialises in these areas. 3PL partners integrate with your business and provide services such as inbound good receipting, pick & pack, storage, last mile delivery, freight rate shopping, returns processing and inventory management.
WHAT ARE THE BENEFITS OF USING A 3PL?
Typically, a 3PL partner has many clients so they’ve been able to achieve economy of scale offering not only greater operational efficiencies but more cost-effective solutions as well. Often, they have negotiated highly competitive freight rates with a number of carriers and are able to provide processing and dispatch guarantees so you can rest assured knowing that your orders will be dispatched efficiently and accurately. But most importantly, 3PLs are highly scalable, expert solutions that are also very flexible with fluctuating demand. Rather than having to resource according to your peak, a 3PL is able to scale up and down as required while maintaining a high standard of service.
HOW DO I KNOW IF I SHOULD USE A 3PL?
We always recommend doing a cost analysis. Each business is different and 3PLs aren’t the best solution for every business. It will depend on your space requirements, human resources that you have available as well as your order volumes. Often, we find that clients reach out to us at two points, the first when they find themselves overwhelmed by order processing on a day to day basis, it’s just taking up too much of their time and they don’t have the skillset within the business, or when they’re looking at costs and realise how expensive freight can be. At Ballina Byron 3PL, we offer a free freight comparison where we’ll work with your recent order history and provide you with a breakdown of the savings you could have made had you been using our freight rates.
HOW DO I CHOOSE THE RIGHT 3PL?
There are many 3PL providers in the market, and it can be hard to choose the right partner. Business owners need to consider a number of factors. We recommend doing your research, your 3PL should be an extension of your business, it’s a partnership. You want to focus on scalability, customisation and continuous improvement.
They should be invested in understanding your needs, not just fitting you into a cookie cutter mould. While every 3PL will have their own processes, it’s important to ensure they will work with you to understand your business needs and adapt to how you want your business represented to your clients. It’s one thing to get orders out quickly and accurately, it’s another thing to ensure that your clients receive their orders in-line with your desired brand experience.
Their location and proximity to your team can be a significant factor, how easy will it be for you to visit the location and check in on operations from time to time? And what types of businesses do they work with? Many 3PLs in Australia have significant experience in wholesale operations, but not many have specialised in ecommerce or can cater to the needs of all aspects of your business. Do you have any specialised requirements? EDI technology or account specifications? Another significant factor is technology. What systems do they use and how easily will these integrate with your own systems, this should be seamless but is often overlooked.
The ideal partner should improve your operational efficiency and accuracy and most importantly increase your customer satisfaction. Giving you time back to focus on your customers and your business.
HOW IS BALLINA BYRON 3PL WAREHOUSING DIFFERENT?
Ballina Byron 3PL Warehousing is a unique 3PL having established themselves as a boutique service specialising in ecommerce, this allows BB3PL to be agile and highly flexible to their client’s individual needs. While being backed by one of Australia’s largest logistics companies means they are able to offer exceptional freight rates, industry leading solutions and robust cloud-based systems that provide real-time, usable insights.
Ballina Byron 3PL Warehousing is also committed to doing things differently, not only by specialising in ecommerce but also in their adoption of sustainable business practices and committing to minimising their impact on the planet. BB3PL provides a fast, accurate and reliable service in partnership with their clients. Supporting them so they can focus on other areas of their business knowing that their warehousing and logistics are taken care of by a team that is not only capable but truly cares about their customer as much as they do.
We provide a personalised service, so take us up on a free cost analysis with our director Andrew, simply email us.