WMS and Fulfilment Service for Shopify by Nippon Express
WMS and Fulfilment Service for Shopify by Nippon Express
BLOG 2025/01/14
In today's fast-paced business world, choosing the right third-party logistics (3PL) provider is essential for keeping your supply chain running smoothly.
While it may be tempting to just search "3PL warehouse near me" and pick the first option, this method can lead to many problems. Here are 7 reasons why you need to take a more strategic approach to selecting a 3PL partner.
A reliable 3PL provider minimizes the need for frequent visits.
While proximity can be an important factor, it should not be the sole criterion for choosing a 3PL warehouse. The closest warehouse might not offer the best services, technology, or reliability. Quality of service, range of capabilities, and industry expertise are far more critical factors that can significantly impact your business operations.
By focusing solely on location, you might overlook 3pl providers better suited to your specific requirements.
Different businesses have different logistics needs. A standard 3PL that specializes in e-commerce fulfillment may not be right for companies that need cold storage (which requires specialized equipment) or luxury brands (which require attention to detail), and so on.
As another example, if you sell groceries online, your 3PL must effectively manage expiration dates and ensure that the earliest expiring items are shipped first.
Ultimately, choosing the right 3PL requires careful consideration of your specific logistics needs and a thorough evaluation of the provider's capabilities and experience.
A nearby warehouse lacking advanced technology can lead to inefficiencies and errors, ultimately costing you more in the long run.
Modern logistics relies heavily on technology for inventory management, order processing, and real-time tracking. Not all 3PL providers offer the same level of technological integration. For example, if your 3PL doesn't have a WMS that integrates with Shopify via API, you may experience delays in order fulfillment and inventory synchronization.
Your business needs can change over time. A 3PL provider should be able to scale their services to match your growth and adapt to seasonal fluctuations. A local provider might not have the capacity or flexibility to accommodate your evolving needs, leading to potential disruptions in your supply chain.
For example, Nippon Express has warehouses in many countries and offers services to support the import and export of containers globally.
If scaling your business is important for you in the future, then put us in your consideration list too.
While a nearby warehouse might save on transportation costs for visits, it might not save on transportation costs for moving items from the port to the warehouse. Or, it might increase the cost to send the parcel from the warehouse to the end consumer around the country.
Other factors such as storage fees, handling charges, and service quality can affect overall cost-effectiveness. A comprehensive cost analysis that includes all these factors is essential for making an informed decision.
It's very important that a 3PL provider can be trusted to do their job well.
Delays, errors, and poor customer service can damage your reputation and customer relationships. Researching a provider’s reputation, reading reviews, and checking references are crucial steps that go beyond simply choosing the nearest option.
On top of transportation regulations, labor and employment laws, data protection, and privacy, different industries have different regulatory requirements.
A 3PL provider must comply with all relevant regulations, whether they pertain to food safety, pharmaceuticals, or hazardous materials. Making sure your provider meets these standards is more important than how close they are to you.
The cost of ensuring the warehouse operation complies with laws and regulations can constitute a significant portion of expenses for small and medium-sized enterprises (SMEs) 3PL. In some cases, it may not even be prioritized for cost reduction. Special caution is required when outsourcing work to SME 3PLs.
Nippon Express might not be the nearest 3PL warehouse for you. However, with an extensive logistics network in countries including Canada, the US, Australia, and Japan, we offer unparalleled consultation on logistics matters. Tell us more about the 3PL services you need, provide some details, and our experienced staff will contact you within a few days to offer expert advice.
If you still have questions or would like to speak with someone to get a free consultation on how to find a 3PL warehouse that is right for you, please drop us a message using the links below.
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