5 Tips to Fulfill Perfect China 3PL Services

Time: Mar 11,2022 Author: SFC Source: www.sendfromchina.com

If you are engaged in import and export work, then the word third-party logistics (3PL) must not be strange to you. Actually, in addition to 3PL definition, most e-commerce sellers may have no idea about:

1. What 3PL can do

2. The difference of warehouse and distribution

3. What is the benefit of 3PL

4. How to choose a excellent China 3PL distribution center

So that’s why I am writing this article. Today, I will reveal the secrets of 3PL and introduce 5 tips for you to fulfill perfect China 3PL services.

I. What is 3PL and 3PL Services?

3PL is the abbreviation of third-party logistics, some times people also called it TPL. 3PL is a way that organizers use third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services in logistics and supply chain management. What’s more, 3PL targets particular functions within supply management, such as warehousing, transportation, or raw material provision.

With the development of 3PL, there emerges 3PL providers. 3PL providers include freight forwarders, courier companies, and other companies integrating & offering subcontracted logistics and transportation services. 3PL providers make custom warehousing service, custom picking and packing service and custom shipping service according to the customers’ requests. The above custom services provided by 3PL providers are called 3PL services.

II. What’s the Condition of China 3PL Services?

Although the history of China 3PL is short, China 3PL Services is booming in these years since China is the largest manufacturer and exporter in the world. The market size of China reaches to RMB649.9 billion in 2010, RMB124.1 billion in 2017 and even RMB1.6 trillion in 2020, thus constantly narrowing its gap with developed countries.

Despite of these achievements, China 3PL Services are faced with a lot of challenges.

Firstly, the market of China 3PL Services is highly fragmented. There are more than 15,000 3PL providers in China, but not a single company can occupy more than 2% market share.

Secondly, most of China 3PL distribution centers have many challenges in warehouse management, such as unreasonable warehouse layout, unable to track the inventory level in time, warehouse security risks, warehouse management software less function, low warehouse efficiency. As the amount of products stored in the warehouse is large, hence it’s difficult for China 3PL providers to update the product information and record the track of the product.

Not all 3PL's logistics integration capabilities are equal. Some 3PL companies may have limited logistics channels and cannot provide customers with good logistics solutions, such as tracking information, the cheapest, the most cost-effective, or the fastest. The customers are from every corner of the world, but the logistics can not reach to every corner, thus it’s important to update the logistics routes.

III. How to Perfect your China 3PL Services?

1. Improve your warehousing management.

For most organizers, the stock price and the storage safety are the greatest concerns. To improve your warehousing management, you can introduce advanced automatic processing system, which can help sync, pick and pack and real-time track your orders, thus saving your time and manpower costs.

2. Optimize Fulfillment Process.

Since different organizer has different products, order sizes and requests, providing custom order fulfillment services will not only expand your target customers, but also improve customers’ satisfaction.

3. Provide solid and custom pick and pack services.

As global shipping is a long distance travel, packages may be damaged during the transportation, so solid packing is essential to reduce package damage. Providing customized packaging services and formulating custom packing solutions for your customers according to the product characteristics and budget will not only earn you a good reputation, but also improve customers’ satisfactions.

4. Enrich your logistics channel.

As your business scope is expanded, you shall extended you destination countries and regions, and enrich the channels you can choose. Multi-logistics solutions will give your customers more choice, and they are more tend to choose you as their 3PL supplier.

5. Improve your customer services.

A whole 3PL services shall start from the consultant of customers, and ends with sound after-sale services. Sound customer services will help you find more potential customers and get positive feedback. Enjoy a good reputation will do good to your business expansion. If your current 3PL partner can’t meet your requirements, please consider changing 3PL company in time.

The above five tips are concluded from most successful 3PL services cases, i hope it can be useful for your business. If you need 3pl order fulfillment services, you can click the picture below to get a quote.