What is 3PL Sydney and What Does it Entail?

Courtney KimMain

What is 3PL Sydney and What Does it Entail

Any e-commerce business commerce company understands order fulfillment as an essential part of operations within the company. As you’re your business expands, fulfilling customer orders in-house becomes unachievable. In this case, involving third-party logistics is the ideal way to go about order fulfillment in the business.

This article includes the essential processes of 3PL Sydney. Read on to understand what it means and everything pertaining to it.

What is 3PL?

Third-party logistics, often abbreviated as 3PL refers to the act of subcontracting e-commerce logistics procedures to an intermediary business. This includes managing the inventory, warehousing, and order fulfillment. Providers of 3PL allow e-commerce companies to achieve more with the tools and framework to industrialize retail order fulfillment.

The person who came up with the 3PL term is yet to be known. However, many businesses started contracting out these services (inbound and outbound logistics) in the ‘70s and ‘80s. Since the initiation and growth of e-commerce in the late ‘90s and 2000s, 3PL has become a universal term and thus expanded its services. The warehousing procedures and transportation services integrated into the supply chain are now what we refer to as third-party logistics.

3PL Sydney order fulfillment procedure

If you are working with a 3PL Sydney Company, understanding what happens in a third-party fulfillment order is essential. Below is what happens when a client submits an order on your website or online store.

·         Receiving

An inventory is required for a 3PL Sydney to ship orders. Receiving an inventory in a 3PL warehouse means that incoming inventory has been accepted and the storage follows. Every 3PL is unique, featuring its own practices and ability to receive and store inventory. Doing this enables 3PL providers to be organized and remain timely, thus fulfilling orders more efficiently and faster.

·         3PL Warehousing

Upon receiving your inventory, the providers will store your items in the fulfillment units. Each stock-keeping unit features a separate storage site, usually on a shelf, pallet, or bin. Different 3PLs have varying storage capacities to handle everything they are required to. Make sure the 3PLs you choose have enough space for all your inventory.

·         Picking

3PL Sydney

The 3PL fulfillment process begins when a client places an order. Some 3PLs will require you to upload orders manually to the system. Others involve worksheets that include details of the order, customers, and shipping. These methods prove inefficient and difficult in managing orders.

The ideal way is using an urbane technology that incorporates your eCommerce marketplace. This will enable you to bring orders, consignments, inventory tracking, and remaining stock together for streamlining the fulfillment process to ensure automatic shopping.

When you receive an order to your 3PL, it will be allocated to the warehouse team for picking. The person picking the order will then receive a picking list containing the items with quantities and locations to collect the products.

·         Packing

After picking all the items in an order, packing begins. The packing process is determined by the 3PL Sydney packing abilities, preferences, and the items to be shipped. Boxes, poly bags, bubble mailers, packing tape, and dunnage are some of the commonly used packing materials.

Some 3PLs charge for packing supplies separately, while others have them included in their fulfillment policy.

·         Shipping

After packing, shipping follows. Most 3PLs ship through trusted carrier partners, whereas others compare the costs from various carriers. 3PLs with integrated technology will start the tracking process once the product is shipped.

·         Returns

Return services are offered by many 3PLs to ensure customer satisfaction. If a return order is shipped back to your 3PL, it will be processed and restocked or disposed of following the 3PLs policies.

Conclusion

Understanding what 3PL Sydney entails will help you shop better. An e-commerce business involving a 3PL saves time and resources and avails more room for expansion.