5 Prerequisites to select a Fulfillment Center for your D2C Brand

1. 5 Prerequisites to select a Fulfillment Center for your D2C Brand

2. In this article, we will discuss the various factors that you need to consider before selecting a fulfillment center for your ecommerce business or D2C brand. The first thing that you need to do is identify what type of services you want from the fulfillment center. This will help in deciding which type of facility to select and also how much space it will require. Apart from this, you also need to consider the geographical location of your customers as well as your suppliers. Your fulfillment center should be based in a place where these two are accessible easily. 68% of 3PL users and 96% of 3PL providers agree that the use of 3PLs has contributed to reducing overall logistics costs.- 2021 Third Party Logistics Study, The State of Logistics Outsourcing

3. Easy Integrations • Automated Order Fulfillment • Ensure Faster Deliveries • Prior Experience in the Logistics & Supply-Chain Industry • Should provide Top-notch Customer Experience • Let’s learn a brief about these 5 prerequisites to consider the right 3PL while outsourcing the e-commerce fulfillment process. Here are the 5 prerequisites to select a D2C fulfillment center for your e-commerce business: 93% of shippers agree that IT capabilities are a necessary element of 3PL expertise. Roughly half—54%—of shippers indicate they are satisfied with their 3PLs’ IT capabilities. - 2021 Third Party Logistics Study, The State of Logistics Outsourcing

4. 1. Easy Integrations Connecting multiple platforms together into a unified system is named as Integration. To make decisions quickly, scale operations, and optimize the service quality, it is necessary to choose a 3PL provider that uses the latest technologies. Select a partner which has a plug n play model that integrates with e-commerce websites. This seamless integration without technical dependence will increase productivity and enable the 360 degree view of customer interactions that has the ability to convert relevant data into actionable insights which improves the customer experience through each stage of the funnel. 93% of shippers agree that IT capabilities are a necessary element of 3PL expertise. Roughly half—54%—of shippers indicate they are satisfied with their 3PLs’ IT capabilities. - 2021 Third Party Logistics Study, The State of Logistics Outsourcing

5. 2. AutomatedOrder Fulfillment In this age of technology, every process is automated to improve efficiency and increase scalability. Integrate your online store with the partner technology to automatically manage the fulfillment process by receiving the order, delegating the order to the respective warehouse and the order will be picked, packed, and shipped to the customer. Autopiloting this will save time, speed-up the process, and bring down the chances of human error. Make sure your partner has the automated order fulfillment process.

6. E-com businesses are trying to meet the needs and demands of the customer. Nowadays consumers are expecting quicker deliveries from the D2C brands. To enhance customer experience and opt for faster deliveries, look into the 3PL providers and leverage the new-age solutions such as order management, warehouse management, inventory planning, delivery management, data analytics and more. Most of the 3PL’s are offering last mile deliveries under 3 hours, same day, and next day delivery for D2C brands. 3. Ensure Faster Deliveries 66.4% of consumers expect their home delivery to be super fast. Source: Good Firms

7. Collaborate with the 3PL which has the best infrastructure, sources and experience in order management, warehouse management, inventory planning, and delivery management to fulfill the order hassle-free. Ensure they have the right infrastructure to support growth over time and be nimble in their business. With the click of a button, a 3PL partner should help ecom businesses make real-time and data-driven decisions to satisfy short-term and future needs. Check if they have a capability to handle the consistent disruptions. Examine the track record to see if they have sound financial stability, stabilized procedures, reliable business practices, and relationships during recessions. A standout 3PL partner will have substantial industry experience and a good relationship with businesses, customers, and employees. 4. Prior Experience in the Logistics & Supply-Chain Industry The majority of shippers—91%—said that their relationships with their 3PLs were generally successful. A higher number of 3PLs—99%—agree that relationships have generally been successful. -2021 Third Party Logistics Study, The State of Logistics Outsourcing

8. 5. Should provide Top-notch Customer Experience A 3PL partner should offer omnichannel fulfillment to ensure an outstanding customer experience. Easy integrations with customizable & scalable technologies, automated order fulfillment, proper infrastructure to plan & manage the inventory, ensuring faster deliveries, prior extensive industry experience, and enabling post-purchase experience & RTO is essential to make your customers delightful.

9. RTO (Return-To-Origin), which simply means that the order was unable to be delivered or returned by the consumer and was sent back to the point of origin. It helps you in calculating the accurate ROI. RTO = (Returns after delivery + Orders not accepted + Cancellations + Order not delivered)/Total Orders 67% of shoppers check the returns page while making a purchase and 92% of shoppers will buy something if the returns process is easy. Note: Lower the RTO, Higher the ROI. Most shippers—93%—and 3PLs—98%— agree that over the last three years, it has become even more critical for 3PLs to develop the capabilities to respond to customers more quickly with accurate and timely information. - 2021 Third Party Logistics Study, The State of Logistics Outsourcing

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