Top Tactics in 3PL for Health and Beauty

Introduction

Sellers in the health and beauty space understand the importance of third-party logistics (3PL). For some brands, having the right 3PL partner can mean the difference between a winning or a losing quarter.

Operators in your industry face challenges with inventory management, quality control, and fast shipping. They are searching everywhere to improve efficiency. For many, outsourcing to a 3PL has made a significant impact on their bottom line, i.e., the customers and CX.

According to an Oliver Wyman survey, businesses that had invested in supply chain resilience marked real monetary growth. Stats showed average revenue growth of 23% (versus 15% growth in comparison to their peers) from 2018 to 2023. In this market, the answer could be the advantages gained by working with the right 3PL for your health and beauty brands.

Read this guide and print it out for your next all-hands-on-deck meeting. It will be the perfect stage to introduce top tactics that will level up efficiencies in your org.

Efficiency Inventory Management

Anyone working with health and beauty brands can agree on one point. Real-time inventory tracking is integral. Even with the array of challenges, online sales growth remains strong. Based on analysis taken by McKinsey, forecasts show that by 2028 the beauty sector will reach $590 billion.

As with any partner, you want a 3PL for your health and beauty that goes above and beyond. These do exist, you just have to know what to look for. A leading 3PL has in place a long-running state-of-the-art technology.

The best in the business leverages it to the fullest to ensure efficient processes. When you align with a team of fulfillment experts, they simplify and streamline the shipping of your products.

But your real focus is how all of the above impacts your customer satisfaction. It’s what makes one fulfillment provider different from others. This shows how they can be a valuable asset to your business. Your endgame is the assurance of a seamless fulfillment process for your cosmetics and beauty products.

Another key point to consider is the role of Business Intelligence (BI) reporting available from your fulfillment provider. Real-time, accurate reporting is more important than ever in demand forecasting. BI can help 3PL providers enhance demand forecasting in many ways. The technology can analyze historical sales data, market trends, and consumer behavior patterns to predict future demand of your health and beauty products.

Real-time BI reporting can help brands adjust forecasts and respond to changing market conditions, seasonal trends, and promotional activities. The end result is the optimization of stock levels to prevent overstocking and stockouts.

Specialized Storage and Handling

Purveyors of health and beauty products call for special handling and care due to their delicate nature. You need to align with a warehouse that can properly store your goods.

A reputable fulfillment center ensures that your products are picked, packed, and transported in a manner that prevents any leakage or damage. They will take the necessary steps to ensure the secure handling of your high-value health and beauty items. FDA-registered facilities are essential for sensitive products like cosmetics, skincare, and supplements.  

When assessing a 3PL for health and beauty brands, choose a partner that has niche expertise because order fulfillment can be quite challenging in this space. With the industry’s typically wide range of SKUs, Lot and expiry control requirements, and the need to be able to trace all products to the end customer, health and beauty-focused fulfillment companies are essential to make this process seamless.

Compliance with FDA and other industry regulations is another area that requires industry know-how. A 3PL with decades of experience can help your team navigate the “when” and the “where” for these. The reason is that efficient order fulfillment is crucial in such a competitive marketplace to maintain customer satisfaction and stay ahead of the competition.

Compliance & Regulatory Support

As you are abundantly aware, there are a lot of moving parts in the supply chain. And traversing health and safety regulations in logistics is a piece you 100% have to get right.

Partnering with a 3PL provider that understands industry-specific requirements is a great way to dot your i’s and cross your t’s. These experts will make sure you have things like product traceability in place. They will execute on strategic processes so that when you need to look back on a product or batch, you can do so easily. For recalls, lot tracking is essential.

Additionally, a 3PL for your health and beauty business stays up-to-date with changing regulations to prevent costly fines or product recalls due to non-compliance. They can assist in maintaining proper documentation and labeling, meeting the regulatory requirements for product packaging and distribution.

Ensure you store, handle, and ship all products in compliance with FDA and other industry regulations to get ahead of the game. A well-oiled logistics company can set you up for success from the get-go.

Fast and Flexible Order Fulfillment

In today's marketplace, you need a partner who goes the extra mile. They should provide quick and flexible order fulfillment. You look to the 3PL for your health and beauty products that have tested strategies to reduce fulfillment time and errors.

What you may not know is that leading 3PLs have multi-channel fulfillment solutions. They can integrate your various sales platforms, i.e., e-commerce stores, marketplaces, and brick-and-mortar retail locations. What’s more, you can expect seamless order processing across all channels. With this synchronization, you optimize shipping speed and costs for each fulfillment channel.

Reverse Logistics & Returns Management

Whether a plus or a minus, returns are a big part of any product's lifecycle. The good news is that top 3PLs understand their important role in creating a strong returns management system for your business.

A seasoned fulfillment warehouse will step in and facilitate the reverse logistics process. They make it streamlined, so health and cosmetics brands like yours can recoup value. Handling product returns efficiently is integral to maintaining the reputation of your goods.

Like most health and beauty companies, you have created customer-friendly returns policies. First-class 3PLs already have processes in place to support these. The most progressive fulfillment centers are green-savvy and will have sustainable disposal and restocking processes as well.

Personalization & Custom Packaging

When you look for a 3PL for your health and beauty products, make sure to leverage their know-how and high tech. These will ensure that you have options to tailor your marketing. In this current market, it’s all about personalization and custom packaging.

When assessing the right 3PL for your business, make sure they can offer the following:

• Custom kitting for subscription boxes and promotional bundles.
• Branded packaging to enhance the customer experience.
• Samples and promotional inserts to increase customer loyalty.

Leveraging Technology & Data Analytics

According to a recent Forbes article highlighting key trends in supply chain tech, “AI-driven analytics are becoming standard tools for executives seeking real-time insights into their supply chains.”

In the cosmetics industry, AI and machine learning play a key role in logistics optimization. A sophisticated 3PL embraces innovation. With warehouse tech, you can take the quality of your fulfillment to a whole new level.

You have likely seen firsthand the benefits of integrating 3PL software with e-commerce platforms. Best-in-class 3PLs are pre-integrated with the most commonly used systems and services. They are ready and waiting to sync with your ERP, shopping platform, marketplaces, and retailers via an advanced integration layer.

In this Age of Information, data analytics is an imperative. With graphical reporting and deep analytical applications, you can see inventory, orders, receipts and returns, shipping, forecasting, and trend data. Gain complete visibility into your warehouse operations through Business Intelligence (BI) and see firsthand how real-time reporting enhances your decision-making and operational efficiency.

In Conclusion

You can see the strategic importance of aligning with a 3PL for your health and beauty brands. Joining hands with the right 3PL partner can do several things. It can 1) enhance efficiency, 2) reduce costs, and 3) improve the customer experience.

By leveraging advanced technology and specialized handling, 3PL providers facilitate real-time inventory management, ensure compliance with industry regulations, and optimize order fulfillment processes.

Final Message

Businesses that adopt 3PL solutions see improved operational efficiencies and achieve substantial revenue growth compared to their peers, making it a strategic investment in today's competitive market. We encourage you to explore a2b Fulfillment, an award-winning 3PL, to level up. Today.

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