As your business scales and your customer base grows, managing your inventory can quickly become a massive responsibility all on its own. For many companies in this stage of growth, hiring contract packaging services through a 3PL packaging provider is an excellent way to handle fulfillment to keep up with expansion. Learn all about 3PL packaging and how it can benefit your business right here.
3PL stands for “third-party logistics”—and a 3PL packaging provider is a partner that handles packaging and fulfillment for other organizations. Operating out of a large warehouse (or, in many cases, several) 3PL packaging partners provide large-scale contract packaging services that organizations may not be able to provide for themselves, thus helping businesses of all sizes scale. Here are some of the many benefits of working with a 3PL packaging provider.
3PL providers have invested heavily into their operations, meaning they can handle all aspects of order fulfillment—from picking and packing to storing and shipping—more cost-effectively than most businesses could be operating alone. This is often achieved via automation, which both reduces labor costs and improves efficiency—benefits that are often reflected in the price of partnership.
Further, because 3PL services have the infrastructure to process orders efficiently, they can process more orders faster, leading to increased sales and growth. Also, because many 3PL packaging providers serve multiple businesses simultaneously, they have access to bulk shipping deals that most businesses could not access themselves.
Reduced Large Investments
A subcategory of reduced costs that deserves its section, the reduction of large investments is yet another benefit of a 3PL partnership. Put simply: when you partner with a 3PL contract packaging services provider, you no longer need to hire your personnel to handle fulfillment, nor do you need to buy or lease warehouse space.
3PL turns fixed investments into variable investments, allowing you to invest in what you need, and nothing more—all while having access to industry-leading infrastructure that allows you to store products and fulfill purchases efficiently and reliably.
Reduced Time and Scaling Difficulties
As covered above, the infrastructure employed by today’s top 3PL providers allows for faster fulfillment at higher volume, as well as access to better shipping deals. This translates to reduced waits for your customers.
Likewise, advanced infrastructure from 3PL providers allows for easy scalability during peak times, meaning you no longer have to worry about fulfillment during the holidays. With a bit of planning, your 3PL provider can easily scale to meet increased demand from your customers.
A crucial step after manufacturing and before shipping, contract packaging solutions cover an all-too-important middle ground in your product pipeline. Here’s what they consist of.
Kitting and Assembly. Kitting is the process of taking several SKUs and combining them into a “kit” for shipping to the end consumer. Kitting is also the process of compiling individual parts required for product assembly into a “kit,” and delivering that kit to a production facility. (Some 3PL partners provide assembly in-house.) Our packaging kitting support team doesn’t stop at development and production alone.
Pick and Pack Services. A crucial one-two punch in fulfillment, pick, and pack services consists of picking required products from the warehouse and packing them for shipping. This packaging fulfillment team works to get your products out fast and on time.
Package Labeling. A straightforward though vital part of the pre-shipping process, package labeling ensures that your products get where they need to go (and meet all necessary regulatory requirements). Your packaging labeling partner, in turn, is responsible for ensuring that your package labeling is accurate and compliant, every time.
3PL Warehousing. For the 3PL providers, our packaging warehouses and storage spaces are where all of the above happens. It’s also the place where your business (and other businesses) stores inventory for easy processing, fulfillment, and shipping.
At Impak Retail, we provide an extensive suite of 3PL packaging services for businesses of all sizes. Utilizing extensive shipping and warehouse networks—each equipped with cutting-edge technology—our custom contract packaging solutions work with your needs to scale your business on your budget.
Have more product orders than you can handle? Ready to move your inventory and scale your business? Our team at Impak Retail is here to help. Contact us to learn more about our 3PL custom contract packaging solutions and explore our full suite of custom packaging services to elevate your next product run.