As 2024 ends, people often become retrospective, looking back on the year and remembering the good times, learning from mistakes, and (hopefully) finding gratitude for a prosperous year. We tend to eagerly look forward to the new year – a clean slate, unlimited hope, and incredible adventures.
Businesses are no different. At the end of the year, they often review what has worked and what hasn’t worked. It’s a time when they evaluate their vendors and partners—often making the decision to walk away from a current provider to grow their business.
Businesses also look forward to a new, prosperous year. Will 2025 be the year they achieve their “stretch goals?” Will they grow into new markets? Do they have the right vendors and partners in place to help them reach their goals?
Retrospection and Evaluation – What does your 3PL’s warehouse look like?
One area that should continuously be evaluated is your third-party logistics service provider. Your 3PL is the backbone of your business. Order fulfillment is not a front-facing, visible aspect of your business by any means, but your business cannot grow without it. In fact, with the wrong partner, you can suffer irreversible brand damage.
If you haven’t recently visited your 3PL provider, you should. The state of the warehouse can tell you a lot about the day-to-day operations. Is the warehouse clean? Is the automation working? Is the facility safe for the workers?
In our previous blog, How to Measure Your 3PLs Performance During Peak Season, we addressed the metrics you should use to evaluate your current 3PL provider. Early 2025 is a good time to run your numbers and evaluate your current provider.
Peak season performance is vital to a successful year, and order fulfillment plays a significant role in it. Were orders processed same day? Were they shipped properly? Were they accurate – was the right item shipped to the right customer?
Looking forward
Once you have conducted your analysis, you can quickly determine if your current 3PL is the right one for your needs. Do they offer the services you need? Do they have (and attain) the SLAs that matter to your business? The next step in the process is to identify potential 3PLs that are the right fit for your business.
Here are some essential 3PL services to consider:
Order Fulfillment
This is the most obvious and basic of 3PL services. Picking, packing, and shipping are what 3PLs do day in and day out. The two most important factors in measuring your provider are speed and accuracy. These metrics (SLAs) are crucial for your customer satisfaction.
A reliable 3PL has an optimal process. They streamline the picking, packing, and shipping processes by reducing worker foot-travel or by employing technology to minimize errors and enhance delivery speeds. a2b uses a blend of automation and workers to provide the fastest pick and pack times and the highest order accuracy rates possible.
Scalability and Flexibility
As markets fluctuate, the ability to scale operations up or down quickly is a significant advantage. A flexible 3PL service can adjust to your business needs, whether you're expanding into new markets or experiencing seasonal demand shifts.
Peak season is the most obvious example of scaling. For months prior to the holiday (peak) season, 3PLs are working closely with their clients, forecasting holiday season sales.
When armed with a solid demand forecast, a 3PL will be able to make any warehouse changes necessary to make the pick, pack, and ship process as efficient as possible. Quick-turn, high-demand products will be relocated to an area closer to the shipping station to reduce warehouse transit time, while off-season products may be moved to more remote locations.
A 3PL warehouse is like a living, breathing organism, and it is constantly changing. This is the kind of 3PL that growing businesses need to meet consumer demands.
Technology, Automation, and Integration
Technology is a huge component of a 3PL and covers every aspect of a warehouse. Many 3PLs like a2b Fulfillment have invested millions of dollars in cutting-edge technology, and a2b is at the forefront of technology. This includes everything from warehouse robotics, warehouse management systems, work execution systems, and transportation management systems. All these warehouse systems are integrated, so you have visibility into every aspect of he order fulfillment process.
a2b Engage is our BI platform that provides real-time data, giving you insights into inventory, orders, shipping, and trend data. All of this is designed to be easily readable and, most importantly, actionable. The integration of cutting-edge technology is essential for staying competitive.
Kitting, Assembly, and other Value-added Services
For many companies, kitting services are essential. Kitting can entail everything from bundling shampoo and conditioner bottles together, to elaborate gift sets. It is crucial to enhancing the presentation value of your products and the customer experience.
One major advantage to kitting is it helps clear out slow-moving inventory by bundling it with faster- moving items. Retailers often use kitting to upsell customers, which results in a higher average order value.
3PLs often are tasked with kitting projects. Your 3PL should offer kitting, assembly, and other value-added services. Warehouses that provide these services often have the expertise, space, and capacity to easily handle these projects, reducing your investment in another service company.
Reverse Logistics
Managing returns efficiently is vital for maintaining customer trust and satisfaction. A competent 3PL service provider can handle the entire process, from returns processing to refurbishment or recycling, turning potential losses into value recovery.
Like kitting above, 3PLs have dedicated space, trained staff, and leading-edge technology designed for reverse logistics, allowing them to manage returns more efficiently and with less overhead. They can easily scale returns operations to meet fluctuating demand, which is especially beneficial when dealing with holiday returns. Advanced 3PLs like a2b leverage modern technology platforms with AI and machine learning capabilities to automate and optimize reverse logistics processes. The result is a reduction in operating costs and an increase in customer satisfaction.
Customer Service Support
Exceptional customer service is a differentiator in any industry. Choose a 3PL that offers comprehensive support, ensuring that your customers receive timely and helpful responses to their inquiries or issues.
To a2b, customer service is more than prompt email replies. As your fulfillment partner, we are focused on working proactively in partnership with our clients, from the onboarding process through the shipping and tracking of your packages.
Our goal is to provide the best customer service in the industry. This vital department is your key to success and customer satisfaction. If your 3PL does not have a robust CS team, your end-customer may not have the information and updates that they need, resulting in negative online reviews for you.
Location
3PLs with multiple fulfillment centers offer many advantages. Retailers can enhance their operational efficiency, reduce shipping costs, and improve customer satisfaction with the right 3PL services provider.
Multiple warehouses allow orders to be fulfilled from locations closer to customers. Working with a 3PL with multiple locations will reduce shipping costs and decrease shipping times.
As an example, a2b’s multiple locations, we can reach 95% of the United States within a 2-day ground network. This greatly reduces shipping costs for our clients. Another advantage of multiple locations, businesses can tap into new markets and demographics, expanding their customer base and providing a competitive advantage.
One aspect that is not often discussed is improved risk mitigation. Distributing operations across multiple facilities reduces the impact of potential disruptions at any single location. So, if a hurricane strikes the East Coast, the West Coast facilities will continue to fulfill orders, providing a seamless experience for your customers.
Safety Record
We have all heard the adage “Safety first”! For a 3PL,nothing is more important than safety. Choosing a partner with a strong safety record ensures better protection for your products, compliance with regulations, and a more reliable supply chain operation.
Often, a strong safety record is an indicator that your products are handled properly, reducing the risk of damage, loss, or theft. This protects your brand's reputation and maintains customer trust.
Safety-focused 3PL companies stay up to date with local, state, and federal regulations, helping you avoid costly penalties and legal consequences. Risk mitigation means that safety-focused 3PLs also have robust measures in place, conduct risk assessments, and have emergency preparedness plans These reduce the likelihood of accidents and supply chain disruptions.
But it’s more than plans and policies.
Safety-minded 3PLs are invested in their employees. They provide a safe workplace environment which improves morale and reduces turnover. Fewer accidents result in lower insurance costs and reduce operational disruptions. A safe working environment leads to increased productivity, reduced employee absenteeism, and smoother operations, ultimately benefiting your business.
At a2b, we are proud of our safety record. We understand that our employees are our most important asset.
Sustainability Initiatives
As consumers and businesses become more environmentally conscious, sustainability is no longer optional. Sustainability is crucial for3PLs due to its significant economic, environmental, and social benefits. Economically, sustainable practices can reduce operational costs through energy savings and waste reduction while enhancing competitiveness by appealing to eco-conscious consumers.
a2b has worked to improve our carbon footprint in many ways. The biggest investment has been partnering with Packsize, a leader in packaging automation.
With Packsize, a2b can create the smallest packaging box needed for shipping. All too often consumers receive a big box with just one or two items, and the box is exceptionally large for the items inside. This is a huge waste of resources and shipping costs.
At a2b, we know that excessive box sizes and dunnage usage is not just a waste of resources but a waste of money. This is just one of the many sustainability practices in place at a2b. Choosing a 3PL partner that aligns and invests in your shared sustainability practices helps reduce the overall supply chain carbon footprint.
Company Stability & Company Reputation
There are over 68,937 3PLs in the United States. With such a large market, it is important to research your chosen 3PL. After all, your 3PLis an extension of your brand.
Don’t forget to investigate whether your 3PL has a proven track record, too. It’s not easy to attain a great reputation, and it is even more difficult to maintain it; it takes effort and continuous dedication. Researching if your 3PL has a good reputation with customers, suppliers, and employees can ensure your success. Check sites like the Better Business Bureau and always ask for references from the 3PL service provider’s customers.
3PL Services as a Value Proposition – Here’s to a Successful 2025!
In the ever-evolving landscape of logistics and supply chain management, partnering with the right third-party logistics provider can be a game-changer for businesses aiming to succeed in 2025.
Value propositions are innovations, services, or features that make your company stand out and be more attractive to consumers. And your 3PL can enable your business to provide them.
With the right 3PL services provider, you can look forward to a successful 2025, especially if you have chosen the right provider likea2b.
About a2b
a2b Fulfillment is an experienced 3PL with nearly 25 years of proven success, growth and innovation. With our investments in warehouse automation, technology, and our professional staff, we provide the scalability, accuracy, and efficiency brands and retailers need to succeed.
Contact us today to start a conversation.
