What Does a 3PL Do? Well, They Offer More Than You Think

Ask most people, “What does a 3PL do?” and they’ll say, “Pick, pack, and ship.” But for a fast-scaling brand, a 3PL can be so much more than that. Imagine never worrying about product recalls because your 3PL has lot tracking to trace every item. Picture saving thousands in shipping costs thanks to freight forwarding expertise. Or gaining data insights that help you forecast demand more accurately, so you’re never scrambling to restock.

In this article, we’ll dig into what a 3PL actually does, and the game-changing services that today’s best 3PLs bring to the table—services that turn logistics from a necessary task into a powerful advantage. 

Here’s what a top-tier 3PL can do to make your fulfillment not just easier, but a true asset to your brand.

The Core Responsibilities of a 3PL

To understand the full scope of what a top-tier third-party logistics (3PL) company can offer, it’s worth first covering the essentials. At a minimum, most 3PLs handle these core responsibilities:

• Warehousing and Inventory Management: Warehousing and inventory management involve the storage of goods and the management of stock levels to ensure that products are available when needed.
• Ecommerce Order Fulfillment: Receiving, picking, and packing DTC and B2B/wholesale ecommerce orders placed through ecommerce platforms and Electronic Data Interchange (EDI) software systems.
• Shipping and Delivery: Selecting appropriate carriers, generating shipping labels, and tracking shipments to ensure they reach customers on time.
• Customer Service Support: Providing assistance with inquiries, tracking orders, and resolving any issues that may arise during the fulfillment process.
• Returns Management: Reverse logistics is essentially ecommerce order fulfillment backwards. It includes inspecting returned items, restocking them when possible, and managing any necessary refunds or exchanges.

What Else Can a 3PL Do for You?

Many ecommerce businesses think 3PLs simply handle the basics—storing products, picking orders, and shipping them out. But if that’s all you expect, you could be missing out on an incredible opportunity. The best 3PLs do much more than bare necessities like mere fulfillment. A highly capable 3PL partner benefits your competitiveness with solutions that address operational struggles and proactively enrich performance head-on. 

Think of capabilities like lot tracking to maintain product quality, freight forwarding to simplify international shipping, and custom packaging for unforgettable unboxing experiences. Additional services like these add value in multiple ways – they not only streamline your operations and save money but also set your brand apart and free up your time to focus on growth.

Lot Tracking

When a 3PL offers inventory management services, it will also typically give you the option of lot tracking. Lot tracking is an augmented practice that strives to create additional visibility into inventory as it flows in, throughout, and out of a warehouse. It's especially valuable for businesses with perishable or regulated products.

Lot tracking can be done in-house but requires a substantial amount of upfront investment and ongoing work to execute properly. With a 3PL, you're able to monitor expiration dates, batch numbers, and serial numbers to the same extent minus all the hassle. Easily track each lot from the moment it arrives at the warehouse for complete control over compliance and product quality related issues. 

Freight Forwarding

Ecommerce businesses with internationally sourced goods typically require freight forwarding – a complicated process encompassing everything from customs clearance to the arrangement of intramodal transportation via rail, road, air, and sea.

Select service providers are also freight forwarders, which means they can act as intermediaries in negotiating better shipping terms, managing documentation, and ensuring goods are transported efficiently across international borders. Their expertise can not only save you time but also mitigate the risks of making missteps in regulatory compliance and scheduling. 

Value-Added Services

Opportunity-curious ecommerce businesses benefit greatly by working with 3PLs for the wealth of possibilities outsourced infrastructure offers. Basic order picking and packing is just one of many things 3PLs do with inventory. 

You can find service providers who also specialize in:

Product Sampling

Product sampling is a strategic marketing tool that allows ecommerce businesses to introduce new products to their customers by providing free samples. This service is particularly relevant for businesses looking to increase brand awareness and customer engagement. Partnership with a 3PL unlocks expertise in the logistics of sampling to ensure samples are delivered to customers fresh and in perfect condition every time.

Custom Packaging

Packaging solutions like interactive or themed boxes not only delight customers but also encourage them to share their experiences with others. Organizing and assembling it is a tough job, though – one that must be done well in order to preserve order accuracy and processing speed.

3PLs handle the complexities of custom packaging on clients' behalf while ensuring the packaging reflects the quality of the product inside. They can work with whatever specialized boxes and cutouts you have, have various types of dunnage, and apply specific labels and inserts to packages without overloading core operations that might otherwise be affected under an in-house arrangement.

Subscription Boxes

Subscription boxes are taking off as a flexible way to engage customers and drive sales. Managing these programs requires careful attention to packaging, timing, and inventory coordination. 

A 3PL with subscription box fulfillment expertise can streamline the entire process—from assembling and shipping boxes on a set schedule to managing inventory specifically for subscription cycles. Their experience ensures a smooth operation that keeps subscribers happy and engaged.

Record and Report Important Data

By no means does outsourcing logistics mean being out of the loop on fulfillment operations. Quite the opposite, actually. 3PLs use data reporting tools capable of delivering much more value than the average warehouse management software can provide. Their large-scale facilities run on enterprise-grade, often specially customized technologies that track inventory levels across SKUs, monitor order statuses in real time, and more.

With this information, it becomes easier to make informed decisions. You can analyze trends in inventory turnover, identify slow-moving products, and forecast demand more accurately. Over time, that means improving both supply chain efficiency and customer satisfaction. 

Recommend Supply Chain Improvements

Good 3PLs invest themselves in augmenting their clients' logistics operations through well-informed advice. Take inventory receiving and storage, for example. If your ecommerce business uses pre-existing self-managed systems, there’s a good chance you’re missing out on several opportunities for cost and time savings. It’s easy to overlook things like warehouse layout, perpetual inventory systems, and automated inventory tracking when starting out – achieving and maintaining a good baseline performance is the focus.

Bringing a 3PL into the fold adds perspective. They already have advanced measures in place in their own facilities and can recommend solutions for any remaining fulfillment operations you choose to handle when working with them. As a direct partner, they're well-positioned to spot potential areas for improvement throughout the entire supply chain.

Negotiate Exclusive Shipping Rates

3PLs with established carrier partnerships leverage their scale to negotiate exclusive shipping rates for their clients. These discounted rates can transform shipping from a significant expense into a strategic advantage. By working with a 3PL, you not only save money but also gain access to flexible options tailored to your needs. 

Whether you need expedited delivery for a time-sensitive order, specific carriers for certain regions, or cost-effective solutions for standard shipments, a good logistics partner ensures you have the right options at the right price. The cost savings of a 3PL can then be redirected toward enhancing product quality, marketing efforts, or other growth-driving initiatives.

Take Care of Regulatory Compliance

Businesses that sell health supplements, cosmetic products, and medical devices are subject to regulations that those that sell toys and books are not. These industries are closely monitored by governing bodies like the Food and Drug Administration (FDA), which enforce strict standards for the storage, packing, and shipping of sensitive goods.

One example is the Good Manufacturing Practice (GMP), a set of regulations ensures that products are consistently produced and controlled according to quality standards. Adhering to GMP helps prevent contamination, mix-ups, and errors, which can have serious implications for consumer safety. Non-compliance creates risks for businesses in the forms of potential fines and lawsuits.

Managing compliance in-house means your business must fully understand and adhere to every applicable rule. This includes registering warehouses with governing bodies, creating detailed compliance strategies like Hazard Analysis Critical Control Points (HACCP) plans, and undergoing routine inspections to maintain certification.

With a 3PL, these requirements remain important—but they’re no longer your direct concern. Reputable 3PLs maintain their facilities to meet or exceed regulatory standards, employing compliance experts to handle quality assurance and oversight. This not only protects your business but also frees up your team to focus on growth rather than grappling with regulatory complexities.

Guarantee Accuracy and Speed

Order accuracy and speed are key to ecommerce success, but maintaining them consistently isn’t easy. Delays, missteps, or errors at any stage of fulfillment can affect delivery times, customer communication, and the overall unboxing experience—all of which influence customer satisfaction and loyalty.

When you work with a 3PL, you’re working with a company with infrastructure that’s efficient by design. Service Level Agreements (SLAs) contractually obligate 3PLs to meet specific standards of performance, usually measured by supply chain KPIs like order turnaround time, fill rate, and cycle time. You can expect consistent accuracy and speed without having to worry about all the work that goes into achieving it. 

Foster Supply Chain Resilience and Adaptability

Supply chain resilience refers to the ability of a supply chain to anticipate, prepare for, and respond to unexpected disruptions. It's influenced by everything from natural disasters to sudden changes in market demand. Businesses must have contingency plans in place for every possible case scenario to remain operational when the services and vendors they usually rely on become unavailable.

3PLs make a point of developing action plans and alternatives. Their connections to multiple shipping carriers, packaging manufacturers, and fulfillment centers can mean the difference between timely deliveries and stagnant operations during times of uncertainty. It's yet another intangible answer to the question of what 3PLs do – provide invaluable peace of mind, ensure stability, and create a competitive edge for ecommerce businesses facing an increasingly uncertain world. 

What Does a 3PL Do? A 3PL Like Shipfusion Helps You Grow

Daunting decisions are an inevitable part of running a business. The key to making them with confidence? Proactive, diligent planning. That’s especially true when choosing a 3PL. A well-vetted partner who’s ready to scale with you will provide invaluable logistical support that ultimately proves worthwhile over the long term. 

Shipfusion is the go-to 3PL for fast-growing ecommerce brands, offering everything from reliable order fulfillment and inventory management to specialized services like lot tracking and custom projects. With 99.9% order accuracy and on-time turnarounds, we’re here to keep your operations running smoothly so you can focus on what matters most—growing your business.

Ready to transform your fulfillment into an avenue for growth? Contact us today to get started.