Why D2C Brands Should Consider Using a 3PL?
As a D2C brand, the customer experience is one of the biggest factors for growth and part of that customer experience is the fulfillment process. Today, bigger companies like Amazon, Walmart and Target have set the standard of two-day or even same-day delivery setting the consumer expectation of faster delivery more aggressively than we’ve ever seen before in the eCommerce space. This makes it challenging for D2C brands to compete in delivering this same expectation at scale. That’s when outsourcing your warehousing and fulfillment operations to 3PL companies can help.
Owning your own warehouse can be costly and challenging to manage operations while also trying to focus on growing a brand. Many brands are finding it valuable to outsource their warehousing services to a trusted 3PL company. With the benefits of using a 3PL company, it’s clear why brands choose to outsource.
Benefits of Using a 3PL
Working with 3PL providers gives brands more access to a team of industry experts who know the best practices for managing inventory and fulfillment operations. D2C brands typically are the experts in product development and marketing but when it comes to logistics, it can be smarter and more cost-effective to outsource this part of your business to a 3PL who has the experience to handle your warehousing and fulfillment operations more sufficiently.
A big advantage of outsourcing to a 3PL is having access to a broad resource network. Gaining access to a 3PL’s resource network allows you to cut down on costs and increase efficiency. 3PLs often develop partnerships with carriers and other parties within the supply chain where they can pass discounts along to their clients due to volume. Your business will surely benefit from these resources that would likely be unavailable to you if you were to manage your operations solely in-house.
Technology is constantly evolving making it costly to develop and maintain in-house. Partnering with a top 3PL usually gives brands access to their latest software and technology to gain visibility into your inventory and fulfillment operations while also being able to measure KPIs. This eliminates the need to purchase the most current technology if you were to handle it in-house.
Flexibility and Scalability
Partnering with a 3PL can also benefit your business giving your brand more flexibility and the ability to scale warehousing space, labor, and transportation based on your inventory needs. Whether you have peak seasons or even looking to grow into new regions, working with a 3PL will provide the support and flexibility you need to scale into new markets upon demand.
Improvement is Continuous
This can often be an overlooked benefit for utilizing a 3PL, but it is certainly an important one. 3PLs are constantly improving their facilities, technology, and relationships with other partners within their resource network. This is something that would be difficult to do when managing your operations in-house simply because your focus isn’t going to be solely on improving this part of your business where a 3PL, it’s what they do. They’re going to be continuously advancing and finding more ways to be efficient so they can retain your business and gain new clients along the way.
Improves Quality and Customer Services
Utilizing a 3PL gives back more time and capital for your brand to focus on the quality of your product and services including customer service. Eliminating the distractions with your warehousing and fulfillment operations, leaving that up to your 3PL will help your brand provide a more consistent and positive experience for your customers.