6 strategies to optimise your 3PL fulfilment workflows

Running a successful Third-Party Logistics (3PL) business is all about finding the sweet spot between efficiency and adaptability. To help 3PL providers navigate common challenges, we teamed up with experts at CartonCloud – a cloud-based warehouse management powerhouse – and Brisbane Logistics, a 3PL provider known for their hands-on approach, to dive into the nitty-gritty of optimising 3PL fulfilment workflows.

Whether you’re managing peak season madness or just trying to keep things running smoothly, we’ve rounded up the top tips to scale up, streamline operations, and keep your clients happy. Let’s take a look at 6 key strategies to optimise your 3PL fulfilment workflows.

Table of contents

• Key challenges for 3PL providers
• 6 Strategies for optimising 3PL fulfilment workflows
  • 1. Optimise warehouse space
  • 2. Automate manual processes
  • 3. Adopt flexible technology
  • 4. Maintain clear client communication
  • 5. Stay in control of your costs
  • 6. Prepare for peak seasons
• Next steps

Here’s a look at three key challenges 3PL providers often need to navigate:

• Efficiency when handling increased volumes – Managing a surge in order volumes, especially during peak seasons, is a significant challenge for 3PL providers. Ensuring that processes remain efficient and that orders are fulfilled accurately and on time requires careful planning and robust systems.
• Technology integration – As client demands grow and diversify, having flexible technology solutions becomes crucial. Seamless integration of various carriers and platforms is essential to streamline operations and maintain service quality across the board.
• Labour and space management – Scaling labour and optimising warehouse space are constant hurdles in the 3PL industry. Balancing the need for additional staff and space with operational costs requires strategic foresight and flexibility.

6 Strategies for optimising 3PL fulfilment workflows

To stay competitive, 3PL providers need to continuously refine their fulfillment workflows. Whether it’s handling increased volumes, meeting diverse client needs, or managing peak season surges, having the right strategies in place is key. Here are five strategies to help you optimise your 3PL operations and deliver excellent service, no matter the challenge.

1. Optimise 3PL warehouse space

Efficient space management

One of the most critical aspects of running a successful 3PL operation is making the most of your available warehouse space. This means strategically selecting clients whose storage needs align with your capabilities.

For example, if your warehouse is well-suited to handling 80 pallets of bulk items a day, but you decide to take on an eCommerce client sending out 3000 units a day of a product you haven’t dealt with before – this could create unexpected challenges in warehousing and dispatch. Suddenly, you’re dealing with high-volume goods with a rapid turnover that requires a completely different workflow setup and approach.

Optimising warehouse space isn’t just about fitting more in – it's about making sure that what you store can be managed efficiently, keeping your operations ticking along like clockwork year-round.

Regularly assess your warehouse capabilities and client needs to ensure a strong alignment. Consider developing a client intake checklist that evaluates whether potential clients' storage and fulfilment requirements match your existing infrastructure and expertise. This proactive approach helps avoid operational bottlenecks and maximises efficiency.

A WMS helps you manage stock levels, allocate storage space more effectively, and streamline the flow of goods through your facility. This reduces manual errors, boosts operational speed, and ensures your business can scale easily as demand increases.

Beyond the warehouse, automating administrative tasks like invoicing helps manage a growing client base without the need to significantly increase your team’s headcount. By streamlining both operational and administrative processes, automation frees up valuable resources, allowing you to focus on enhancing your business and delivering exceptional service to your clients.

3. Adopt flexible technology

Solutions for diverse client needs

In the 3PL space, no two clients are exactly alike. From eCommerce businesses requiring rapid, high-volume shipments, to clients dealing in bulk goods with entirely different workflows, the range of needs can really vary.

Adopting flexible technology solutions that can seamlessly adapt to these varying demands is crucial. For example, warehouse management systems (WMS), inventory management systems (IMS), and shipping automation like Starshipit, allow you to serve a diverse client base without significant disruptions to your operations.

Integration with existing systems

Flexibility also means compatibility. The technology you choose should easily integrate with your clients’ existing systems, enabling a smooth flow of information and operations. This seamless integration not only helps in maintaining high service standards but also ensures that as your clients’ needs evolve, your operations can keep pace without missing a beat. When researching different technology, always consider the number of integrations available to ensure its compatible with your clients’ existing systems. By adopting systems that work well with a variety of platforms, you can reduce friction and deliver a consistently excellent experience.

Keen to see how Starshipit works for 3PL fulfilment? Hit the link to take a tour and see how other 3PL providers are adopting powerful shipping automation to streamline their processes.

This level of transparency reduces the need for constant back-and-forth inquiries while building trust, as clients can monitor their operations directly and make informed decisions without delays. Whether it’s through a dedicated portal or integrated dashboard, ensuring that clients have the visibility they need can significantly enhance their experience (and your service reputation!)

Automated reporting

Alongside real-time visibility, automated reporting is another powerful tool to maintain clear communication with clients. By leveraging technology to generate regular reports such as key performance metrics and inventory levels, you can provide your clients with valuable insights without the manual workload.

This automation not only saves time, but also allows clients to receive consistent, accurate updates on their operations, enabling them to plan and strategise more effectively. Additionally, this level of service positions your 3PL as a proactive partner in your clients’ success.

5. Stay in control of your shipping costs

Managing shipping costs effectively is crucial for maintaining profitability as a 3PL provider, shipping automation platforms like Starshipit offer powerful features to help you stay in control.

Manage carrier surcharges

Understanding and managing carrier surcharges is another important aspect of cost control. Surcharges for things like residential deliveries or oversized packages can quickly add up, eating into your margins. Starshipit enables you to track and avoid unnecessary surcharges; by setting up rules to choose carriers with more favorable terms, you can keep these extra costs in check and maintain profitability.

Control your margins

Too often, 3PLs pass carrier rates on to their customers without adding any additional margins. However, this approach can be a missed opportunity to generate revenue and maximise profitability. With Starshipit, you can set shipping rates that include a built-in margin, turning your logistics services into a revenue-generating part of your business model.

6. Prepare for peak seasons

Scalable operations

Peak seasons can make or break a 3PL operation, so it’s important to have the right systems in place to handle demand fluctuations. Implementing scalable systems that allow you to quickly ramp up operations during busy periods – and scale back when things quiet down – is essential for maintaining efficiency and service quality.

For example, automated shipping documentation and bulk label printing can reduce the workload, allowing you to manage increased volumes without putting any unnecessary strain on your team. This kind of flexibility ensures that even during the busiest times of the year, your operations run smoothly, and your clients stay satisfied.

Quick staff onboarding

Another key to surviving peak seasons is the ability to quickly onboard temporary or additional staff. Technology plays a big role here; making sure that your systems are user-friendly and easy to learn means that new team members can hit the ground running with minimal training. Additionally, having the ability to easily add users and control their permissions is essential for maintaining security and efficiency. You can assign specific roles and access levels, ensuring that temporary staff only interact with the parts of the system they need, reducing the risk of errors and keeping sensitive information secure.

This capability is especially important during peak periods when every minute counts. By equipping your temporary workforce with intuitive tools and controlled access, you can maintain high levels of productivity and accuracy, even as order volumes skyrocket.

Next steps

Staying competitive as a 3PL provider requires more than just hard work – it demands smart strategies and the right tools. By automating manual processes using flexible technology, you’ll be able to optimise your warehouse space and be prepared for the busiest times of the year.

If you’re ready to take your 3PL operations to the next level, try Starshipit’s powerful automation features and seamless integrations to streamline your workflows, reduce manual errors and scale your business with ease. Book a custom demo with one of our shipping experts to see it for yourself today!