What is 3PL compliance?
Order fulfillment is the process of sourcing items, processing them, and finally delivering them to end consumers. The procedure begins when the customer makes the purchase and ends when he receives it. However, if a customer wishes to return an item, order fulfillment will handle the return process as well.
The success of order fulfillment is highly dependent on your organization or a trusted third party completing all relevant procedures involved in order fulfillment. For an eCommerce web business to be successful, it must deal with a number of processes involved in fulfilling the orders it receives, including receiving, processing, packing, picking, and lastly, delivering an order. online to consumers. For such businesses to remain competitive in the marketplace and maintain customer loyalty, an effective retail order fulfillment strategy is critical to survival and growth.
Different third-party logistics service providers (3PLs) specialize in various forms of warehousing and order fulfillment services. This article will discuss the essential details of the order fulfillment process and the different types of 3PL Compliance methods that exist.
Your 3PL provider must have your inventory on hand before they can begin fulfilling orders. The receipt of an order begins when the customer buys stock for himself, referring in general terms to the process of accepting and storing the incoming merchandise in the fulfillment center. Each 3PL service provider has its own protocols for obtaining and maintaining inventory, which often include the merchant submitting documentation on the specific storage requirements of their products. This helps keep things organized and in order, which means your items may start arriving sooner than you expected.
The next step in the process is warehouse picking. When an order is submitted to your 3PL service provider’s order fulfillment system, it is assigned to the picking team. A picker receives a delivery note that lists the goods, volumes, and storage space of the requested items at the plant so that they can be picked up at designated locations.
Once all the products in a transaction have been selected, it is time to secure them before sending them out for shipment. While some third party logistics providers charge for packaging materials, others provide them as included in the costs of fulfilling your orders. Your 3PL service provider will most likely choose packaging materials that protect your items while contributing to the lowest possible dimensional weight.
After packing the order, it’s time to ship it. Most 3PLs will obtain shipping labels from carriers chosen by the merchant. While some fulfillment companies connect with preferred carriers, others evaluate shipping prices from a variety of carriers and handle the negotiation themselves. The latter allows us to offer the cheapest delivery options imaginable. An example would be some 3PL service providers picking products directly from the manufacturing site rather than from warehouses.
‘Third party compliance’ is described as the process of contracting with an external partner to manage compliance operations. These operations may involve inventory management, the generation of optimal pick lists, the packing and delivery of cases and orders, as well as the administration of returns.
‘Merchant Fulfillment’ means an eCommerce Seller who manages the entire order fulfillment process in-house, without the assistance of a third party. When starting out, many online businesses prefer to fulfill orders in-house to save costs.
Dropshipping is a newer approach to order fulfillment and production. The manufacturer produces, stores, and ships the inventory itself through third-party retailers.
The bottom line
The above are just some of the options to consider when selecting a 3PL. Just as there is no one-size-fits-all fulfillment solution, there is also no one-size-fits-all approach for third-party logistics providers. You should make your decision based on your unique business requirements and individual needs.
We hope this information helps you make an informed decision about 3PL fulfillment options and which one works for a business of your size.
George is Digismak’s reported cum editor with 13 years of experience in Journalism