How To Analyze If Third Party Fulfillment Is Right For Your e-Commerce Company
There are hundreds of competent third part fulfillment (3PL) facilities in operation today. Many have multiple facilities, which allows clients to be closer to the customer and save shipping costs. Additionally, private equity investors have acquired many major 3PL companies and consolidated them into 3PLs with dozens to hundreds of facilities. Many of these have specialized fulfillment for channels like DirectTV (DTV).
Much of our work at F. Curtis Barry and Company is in making internal fulfillment more efficient and improving customer service. As we do 3PL evaluations for clients we are continually impressed with the efficiency (cost per order), technology employed and the service they provide to large, specialized omnichannel businesses. The 3PL option is not for all companies. However, it is an option more companies should consider.
This article will assist you in evaluating whether 3PL solutions are right for your business. Here are eight major factors you should evaluate.