3PL in Mexico and order fulfillment

Nowadays the efficiency of the logistic process of a company is one of the key factors for its success. From raw material supply to production process performance and goods delivery logistics. Each of these stages must be optimized and constantly improved by industries and companies.

However these tasks may seem a little complicated to handle, this is why third-party logistics companies are key allies in the management of order fulfillment of businesses, but there is still so much misinformation about these companies.

For you to know more about this, Buho Logistics wants to share with you what a third-party logistics company is and how they can help you to optimize your fulfillment process.

 

 

What is a 3PL company?

A third-party logistics (3PL) company is an independent organization that offers logistics and supply chain management services to businesses.

This means that a 3PL company acts as a mediator between businesses that need logistics services and transportation carriers, such as trucking companies, shipping lines, and airlines.

They provide access to their clients to competitive prices in services like transportation, storage in different cities such as warehouses in Monterrey, inventory management, order fulfillment, and other related services.

One of the main benefits of working with a 3PL company is the ability to leverage their expertise, technology, and infrastructure. These companies have access to a wide range of transportation options and can provide businesses with customized solutions to their logistics challenges. This allows businesses to focus on their core competencies and leave the logistics and supply chain management to the experts.

This is possible since third-party logistics companies can negotiate better rates with transportation carriers and courier companies in Monterrey or any other city in the world.

The goal of a third-party logistics company

The main goal of a 3PL company is to help businesses improve their supply chain operations, reduce costs, and increase efficiency, by outsourcing logistics and supply chain management services to a 3PL company.

That’s why they are constantly updating to stay specialized in managing the movement of goods from one place to another, handling everything from transportation to warehousing and inventory management.

Likewise by providing logistics services, 3PL companies also aim to build long-term partnerships with their clients. This involves understanding the unique needs of each client and providing customized solutions to meet those requirements. By developing strong relationships with their clients, 3PL companies can help businesses achieve their objectives and grow their businesses over time.

Order fulfillment process by a 3PL in Mexico

First of all, we need to understand that the services that are offered depend on the 3PL company, some can just provide the basic services (storage, picking, packing, and shipping) while others can provide kitting services and return logistics management.

Here at Búho Logistics, we take care of every stage of your order fulfillment hereunder we will explain a bit more about our order fulfillment process.

1.- Inventory reception

The stage of inventory reception consists of the acceptance of the products at the warehouse or distribution center of the 3PL company, as well as the necessary paperwork and record-keeping to document the reception.

First, the 3PL needs to verify the accuracy of the shipment. This includes checking the number of items received against the quantity ordered, as well as inspecting the items for any damage or defects.

Once the shipment has been verified, the items are moved to a receiving area where they are sorted and staged for storage. Some 3PL companies have smart warehouses where some machines and robots help to optimize the picking process.

The next step is to create a receiving report, which documents the reception of the merchandise including information such as the date of acceptance, the number of products, and any discrepancies or issues with the shipment. This report is used to update the inventory management system, which tracks the quantity and location of each item in the warehouse.

2.- Picking

The picking process usually starts when the 3PL company receives a customer order through the management system synchronized with their client’s eCommerce. After this, the collaborators or robots in the warehouse start selecting and preparing the products of the order for shipment.

In summary, picking is the process of locating and selecting the items in a warehouse or distribution center that are required to fulfill an order.

The system generates a pick list, which provides details about the items in the order, their locations in the warehouse, and the quantity required. The picker then uses this list to locate and retrieve the merchandise from their designated storage locations.

If the 3PL in Mexico has a smart warehouse, the picker can be supported by robots or several tools to facilitate the picking process, such as handheld scanners or voice picking technology, which provide real-time inventory data and help to minimize errors.

For order fulfillment, it is important during the picking stage, to maintain accuracy and efficiency to ensure that the right items are selected in the right quantities and delivered to the customer on time.

3.- Packing

The stage of packing involves preparing the products of an order for shipment to the customer. In the packing process, the 3PL company needs to be careful to secure the items to ensure they are protected during shipping and arrive at the customer's destination in good condition.

4.- Kitting

On the other hand, some businesses may need the kitting service, this is a process in which individual products or items are grouped to create a new product or package.

For example, in the electronics industry, a kit may include a set of components such as wires, resistors, and capacitors, which are packaged together to make it easier for customers to assemble and use a specific device. In the retail industry, kitting may involve bundling products such as clothes, accessories, and beauty products together to create a gift set or promotion.

This type of service is useful when your company is releasing a new product and you can send a sample as a gift for your consumers with brochures that contain information about your new item.

5.- Shipping

This stage doesn’t need explanation, once the order is complete, the 3PL company sends it to the customer. As we mentioned before, these companies have agreements with courier businesses that provide competitive prices for third-party logistics companies to help them save resources such as money and time.

6.- Returns logistics

Unfortunately, not every sale is going to be successful, some customers will return the products due to several reasons, some of them are because the product is damaged or broken (that’s why you need to ensure safe packing) or because the item doesn’t satisfy their expectations or needs.

Here your 3PL company in Mexico can also be involved since they also are expertise in returns logistics. This strategy refers to the process of managing and handling the return of goods from customers to the seller or manufacturer.

It involves the entire cycle of receiving returned goods, inspection them, processing them, and determining the appropriate course of action, which may include repair, replacement, refund, or disposal.

Businesses need to have effective return logistics processes in place to ensure customer satisfaction and loyalty.

Return logistics can be a complex and challenging process, as it requires careful planning, organization, and communication to ensure that returned goods are handled quickly and efficiently; this includes having clear policies and procedures in place for returns.

We hope that this article helped you and you find it useful. Don’t forget to share it on your social media and stay tuned to our blog to find out more about 3PL and order fulfillment in Mexico and the world.