What is 3PL and Is It Essential For You Right Now?

The COVID-19 pandemic has upended business as we know it for the foreseeable future. But, in the warehousing and logistics world, we have had to remain as close to the status quo as possible.

Many 3PL providers, including CRWS 3PL Warehousing and Logistics, have instituted strict social distancing guidelines in their facilities and limited person-to-person contact in warehouses. Stringent hygienic standards are upheld across the industry to make sure that the product we store, package and ship are as safe as possible for the end consumer.

3PL providers are an essential part of the supply chain process and this pandemic has made it more clear to even consumers that without a solid supply chain, many distribution systems would crumble.

Business is in Flux. 

Before the pandemic hit, millennials were emerging quickly as the main consumers in the marketplace. They were making 54% of all their purchases online with 40% of male millennials going as far as saying that they’d purchase everything online if they could.

Now in an unprecedented business environment, with demand increasing for surprising products (like toilet paper) and more customers requesting online-only options than ever before, having a solid supply chain and updated inventory is more important than ever.

Many retailers are feeling overwhelmed trying to keep up with demand and the struggle of online fulfillment. On March 10th 2020, a survey was conducted by the Institute for Supply Management and the results showed that 75% of companies at that point had reported a supply disruption and 44% of companies didn’t have a plan to deal with the kind of disruption we’re seeing due to COVID-19.

If you’re one of the retailers experiencing uncertainty or supply disruption, it may be time to talk to a 3PL provider before it starts affecting the customer and impacting your bottom line.

(How to Choose a Warehousing and Logistics Partner)

Customer expectations are higher than ever thanks to Amazon and the other big box retailers that have increased their budget to follow suit. With the price of industrial property sky-rocketing for fulfillment centres, it’s becoming almost impossible for small-to-medium sized retailers to compete in-house.

Right now, the details of your business’ supply chain are prevalent to consumers. Even the smallest hiccup can create a noticeable disruption for customers at the end of the chain. 

For some retailers, one of the biggest struggles is keeping products on the shelves. If you choose to work with a 3PL provider, ensure that they have the ability to accurately track your inventory in real-time. Being more in-tune with customer priorities and ensuring that they have the products they need is the best way to maintain a competitive advantage right now.

The right 3PL provider will be able to help you track and analyze inventory patterns as well as monitor the overall industry to see what is trending and what is becoming less important. They will be able to integrate this external data with your own business trends to give you an edge on meeting the constantly shifting demand of a pandemic.

Monitoring best practices in a pandemic. 

Working with an already established 3PL provider means that there is a good chance they probably already have procedures in place for limiting the spread of germs and viruses in their shipping and handling processes.

Having a good 3PL provider will take some of the guesswork out of what is best practice for handling inventory in a time where safety is upheld by strict hygiene standards. While limiting or not accepting returns on inventory right now is mostly for the safety of warehouse workers, it also provides an opportunity for your business to put the wellbeing of the customer at the forefront of your fulfillment process. Keeping everyone in the supply chain safe is the top priority of any 3PL provider.

As well, you can be sure that your inventory is in an environment where its exposure to the risks of a pandemic are limited as much as possible.

We’re in the midst of the “Now” Economy.

Not only has the demand for product sky-rocketed, but so has the need for shorter shipping times. Amazon has customers used to two-day turnarounds on products, but now retailers are facing empty shelves and are struggling to keep up with demand.

Having a 3PL provider that is close to your service area or customers is important, ensuring the quickest and more efficient shipping options for an affordable price. The average customer is no longer willing to pay a premium for a fast shipping time.

Remember that every warehouse isn’t the same. Every 3PL provider has different strengths and may not be set-up to service your specific needs as a business. Choose a well-established 3PL provider that has worked with a variety of industries, giving them the flexibility to service you in a way that works for your business.

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