How to Find Warehousing and Fulfillment Companies for Your Business
Container Unloading also called “Container De-Stuffing” is the process of removing products from inbound shipping containers.
Order fulfillment is an integral part of any business, whether it is eCommerce or based on physical premises. Most firms cannot handle order fulfillment internally and look for a fulfillment company to handle inventory storage, packing, and shipping. Getting the right partner can be a daunting task because every business has unique needs. However, working with the right logistics company allows you to focus on core business operations while ensuring timely order fulfillment.
Before You Start Searching, Know What You’re Looking For
Get a Vendor
It is important to get a competent vendor because you will trust them with the back end of your business. That is why you should select a fulfillment firm that understands your needs and offers high-quality logistical services. Some of the issues to consider when picking an order fulfillment company include:
Credentials and Certifications
Third-party logistics (3PL) companies are required to acquire several certifications and credentials to operate. Some of the requirements relate to specific commodities, such as food-grade items. They also earn awards for exemplary service. You should request potential partners to show their certificates and industry awards as proof of competence and superior service.
Pricing Information
It is important to get a competent vendor because you will trust them with the back end of your business. That is why you should select a fulfillment firm that understands your needs and offers high-quality logistical services. Some of the issues to consider when picking an order fulfillment company include:
Credentials and Certifications
Third-party logistics (3PL) companies are required to acquire several certifications and credentials to operate. Some of the requirements relate to specific commodities, such as food-grade items. They also earn awards for exemplary service. You should request potential partners to show their certificates and industry awards as proof of competence and superior service.
Visit Their Facilities
Visit the potential partners’ premises and view their warehouse capacity, meet staff and feel their level of organization. You may not manage to visit all service providers, but touring facilities gives you a clear picture of their capacity and capability.
Insurance and Accountabilityions
Make sure the fulfillment company has sufficient insurance cover for all the commodities they handle. Insurance is essential, especially if you are dealing with expensive or delicate commodities because it protects you and your customers from potential losses. And they will be responsible for safeguarding your products, so confirm that they will take accountability for any losses of inventory.
Specialization
Most fulfillment firms specialize in certain commodities. Specialized firms may offer superior service to generalists because they have special equipment or facilities for handling certain goods. Ask vendors to indicate their specialty, especially if you deal with products that require sensitive handling.
Performance Metrics
Most leading organizations have standardized processes and procedures to minimize errors and maximize efficiency. Efficiency is critical in logistics because timely order delivery can make the difference between retaining and losing a customer. Ask the vendors for performance metrics such as lead times and historical accuracy rates to get an idea of how they ensure accurate and timely shipments.
There are several other factors that you should consider when looking for a vendor, such as financial viability, length of contract, and reputation. This post provides a detailed guide of what you should look for in a fulfillment house.
How to Find Reliable 3PL Vendors
Ask Business Associates
Business associates can be a valuable resource while searching for a warehousing and fulfillment service. Most industry veterans understand what it takes to provide an effective logistics service and will connect you with the best 3PL vendors in the business. Referrals are valuable if you are looking for a local firm that understands the area you serve. However, be cautious when selecting a vendor because some warehouses may not specialize in your type of product or service.
Searching Online and Looking for Reviews
Google provides many reviews on the best fulfillment companies out there. Most of them rely on search engines for research, meaning that there is no in-depth analysis of different performance measures. Even though the information is not always reliable, it is a good starting point.
However, you need to be careful with some of the recommendations as the publishers may have vested interests in the review. For instance, some websites require companies to pay a fee to appear on their list. Other sites only feature vendors that use a particular service. The problem is that most reviews feature little information about the vendor while others make inaccurate claims. It is also likely that the publisher does not vet the vendors but relies on the information they submit to make rankings.
Typically, the largest and most visible companies dominate the reviews. Sometimes these companies pay to appear on a top list or have a compensation deal with the publisher. The result is a biased list of vendors rather than a helpful list of the 3PL companies that can cater to your needs.
Since most small 3PL companies do not appear on the reviews, an online search can be a problem for small businesses looking for localized solutions. Small vendors cannot compete with the marketing budgets of big companies and may not have high visibility online. The risk is that small businesses may end up paying for services they don’t need by partnering with large 3PL companies.
Some of the review sites provide useful information about selecting fulfillment centers, such as credit ratings, location, and customer reviews. However, the reviewers still make the mistake of recommending one company for all types of order fulfillment services. This is not the best approach because most 3PL firms specialize in a particular niche.
Recently, online marketplaces for warehouses have emerged, claiming to connect customers with 3PL providers. The issue with these sites is that they list all types of warehouses, including companies that are not specialized vendors. It would be risky to trust critical aspects of your business to firms that are selling extra warehouse space.
Referral/Matching Sites
Finally, you can link up with a fulfillment matching site or fulfillment broker. The advantage of such matching sites is that they offer a comprehensive and unbiased list of 3PL companies ranging from global firms to local vendors. They have logistics experts who research and analyze each company using a standardized system. The matching sites ensure that all the vendors on the list are financially stable and have a good reputation. They also provide clients with a curated list of the vendors that might suit their business needs. Matching sites will find compatible companies and provide quotes, usually for no cost to you.
Fulfillment brokers, on the other hand, will help you source a fulfillment company for a fee. These companies are usually best for complex scenarios with a multitude of requirements. The downside of using a broker, of course, is that they will earn a small commission from the fulfillment center or from your company directly. Either way, you end up paying an additional recurring fee for the recommendation and selection. This could end up costing your business quite a bit of money, especially if the commission is over the life of the deal – so there usually needs to be a very compelling reason to use a broker.
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