Riddhi Corporate Services Limited
The role of Third Party Logistics and Software
in eCommerce Businesses
www.riddhicorporate.co.in
The Role of Third Party Logistics
A third-party logistics provider (also known as a 3PL) handles logistical needs
such as warehousing, distribution, packaging, etc. These providers specialize
in these areas of operation. They can tailor their services according to the
demands and needs of their customers. Customers may not be able to control
internal business related factors or external ones.
Apart from logistics, many 3PL companies also help customers with
production and procurement. Using third-party providers enables
eCommerce businesses to further profit from their operations. Therefore,
they play a key role in integrating eCommerce sellers' supply chains.
What are the Services provided by Third Party
Logistics Companies?
Scaling up your eCommerce business will require you
to use the following services.
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Warehousing
Inventory Management
Picking and Packing
Shipping and Receiving
Warehousing
After the third-party company receives the final product from your business, they begin their
part of the process. You can also charge a 3PL Warehousing Services for the transportation of
your goods from your factory or warehouse to its facility. Third Party Logistics Warehouses
store the products before customers place orders. The warehouse management software
tracks your product's inventory and entries into its warehouse.
Each product is given a SKU code, which identifies its location in the warehouse. A SKU code
can help identify a product on a shelf, floor, bin, or pallet. The product is visible via their
system and also via your software, such as RCSL, which allows you to see your entire business
at a glance. Afterwards, you can decide which of these SKUs should be reflected on your
online store. The handling, distribution, and transportation processes can be customized to a
greater extent with some 3PL providers.
Inventory Management
Inventory Management for some 3PL Companies isn’t just about tracking the
product. Integration with your eCommerce store, synchronizing the inventory
levels at each fulfillment checkpoint, and reordering inventory levels at each
fulfillment checkpoint, and reorder the inventory.
This is a supply chain Design that works very well for D2C and eCommerce
businesses with just one or two online sales channels. Your Third party
Logistics provider might also use RCSL as the number of Channels or
marketplace increases.
The Stocked Inventory can be monitored with any eCommerce inventory
Management Software. With the 3PL’s technology and workflow, you can also
receive real-time stock counts on the store’s website, which helps display outof-stock items to your customers.
Picking and Packing
During this phase, the fulfillment process officially begins. Pick-and-pack fulfillment is carried
out by a 3PL. Some integrate with eCommerce aggregates like RCSL to make this process
easier. As a result, all in order, shipments, inventory, tracking and stock levels are all in one
place instead of manually updating a spreadsheet.
Whenever a new order placed, it is passed on to the warehouse picking team, who collect the
order from the locations in its respective quantities and pass it on to the packing team.
Getting the order ready for shipping is the part of their job. The packing depends on what is
available and what your brand prefers.
Examples of materials used in Packaging
Polybags & Plastic Packaging Bags
Unbranded boxes
Paper-based dunnage
Packing tape
Bubble wrap & mailers
As long as you use the right packing material, you will not be charged
separately. If you use Third Party providers, they will recommend and advice
you on the best shipping method. The shipping company will charge your
company based on volumetric weight, keeping in mind the possibilities of
Damage.
Shipping and Receiving
Generally, 3PL providers will manage the entire shipping process from
beginning to end, which means that the packing team will purchase, print and
adhere the required shipping labels on your behalf. While others compare the
shipping costs and select the best deal.
It is better to choose a Third Party Logistics Services provider who keeps
in mind the customer’s delivery speed and packages size, and offers you the
most affordable options.
Conclusion
In additional services in 3PL, RCSLIndia offers warehousing and
inventory management. We offer no-obligation quotes to
companies seeking to leverage our outsourced services.
Any questions?
You can find us at
@RCSLIndia & sales@rcspl.net
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