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Enhancing Agricultural Productivity Through Third-Party Logistics (3PL)

November 4, 2024 John Griffin 3PL

Enhancing Agricultural Productivity Through Third-Party Logistics (3PL)

Getting products from a farm to store shelves and your customers is no small feat. The process is complicated since produce, such as eggs, meat and dairy products from farms, need to stay fresh for customer satisfaction.

Working with a dependable third-party logistics, or 3PL, service provider is advantageous for navigating the warehousing and transportation process with confidence. If you are an agricultural business owner, understand that Crown LSP Group, Inc. offers the chance to increase productivity and eliminate hurdles.

Current Challenges in Agricultural Logistics

Handling agricultural logistics on your own may seem like a solid use of your time. However, these operations require your attention around the clock. Without the correct temperature-controlled trucks, staffing and training, overseeing agricultural logistics in-house distracts from other areas of your business.

A 3PL provider in agriculture helps tackle well-known obstacles around transporting agricultural products:

  • Supply chain processes: Logistics operations demand vehicles, drivers, containers and connections to ports. A 3PL makes it easier to obtain the tools and resources for a smooth supply chain process and consistent productivity.
  • Organized transportation: It is hard to predict the quantity of goods new customers will request in the future. Agricultural logistics require your business to organize transportation channels and a means of storage for goods.
  • Seasonal variations: It is possible your agricultural company handles seasonal crops. Changing demands mean you need enough space in storage facilities and trucks to accommodate your staple and seasonal products.

Understanding 3PL in Agriculture

Third-party logistics providers, like Crown LSP Group, take care of the transportation process when moving perishable goods. Our professionals assist you in relocating agricultural products from facilities based in North Carolina. Taking items anywhere along the East Coast is manageable with our experts who meet diverse needs.

Agricultural Transportation Services

With a 3PL provider, you can plan deliveries between your agricultural facility and your customers. Make sure that your transportation process goes smoothly and according to plan. Let your 3PL provider know the types of perishable goods you need to relocate, and they will recommend options for completing the job.

3PL transportation services give you unmatched flexibility — choose from full truckload (FTL) or less-than-truckload (LTL) services to support the shipment sizes your customers request. Crown LSP Group has the temperature-controlled vehicles necessary to transport your agricultural products over short and long distances.

Agricultural Warehousing Services

Boost agricultural productivity using our cold storage facilities. These warehouse locations are equipped with refrigeration and freezing equipment, which is ideal for keeping produce and dairy products in peak condition.

Warehousing services are useful for allocating goods to customers on an as-needed basis. Before an order comes in, you know how much stock is available to ship.

Agricultural Inventory Management Services

Third-party logistics professionals keep you up to date with how many supplies are available to meet your customer requests. Most 3PL companies understand the value of e-commerce for the agricultural sector.

Rely on an experienced team to fulfill orders for you and minimize waste. Know your products are stored in temperature-controlled environments for future allocation and a reduced chance of spoilage.

Benefits of 3PL for Agricultural Businesses

The right 3PL provider for your business helps you take your productivity to new heights.

Crown LSP Group provides the following advantages:

  • Supply chain optimization: You require flexibility throughout your supply chain. By using a third-party logistics provider, your business has access to real time shipment information and data analytics to influence decisions.
  • Compliance: Follow the regulations set by the Food and Drug Administration (FDA) for the agricultural industry. Logistics partners are well-versed in the guidelines for temperature-controlled shipments.
  • Prioritize business: A 3PL provider serves as an extension of your workforce. Let a team like Crown LSP Group take care of shipping, warehousing and fulfillment tasks while you focus on farming and production.
  • Professional insight: Working with a reputable 3PL provider helps you operate efficiently thanks to services tailored to transporting perishable goods in consistent environments.
  • Fully scalable: Serve your customers without incurring financial loss. Third-party logistics professionals, including Crown LSP Group, allow you to request only the space you need within trucks and storage facilities to save money.
  • Larger reach: Joining forces with a third-party logistics provider lets you reach new customers who are outside your local area. Deliver goods between states to increase revenue and build your brand.
  • Consistent customer service: The right 3PL provider will make it easy to reach them for additional details regarding agricultural products. Our team ensures you always know where your shipments are.

Choosing the Right 3PL Partner for Agriculture

You shouldn’t trust just anyone with your perishable and nonperishable offerings. Your agricultural assets are a critical part of your annual revenue, so they should be left with individuals who have shipped similar items before.

Always do your research on a third-party logistics company before doing business with them. Details such as what types of vehicles they operate, how many years they have been operating, the number of drivers they have in their carrier network and how far they are willing to transport agricultural products are excellent places to start.

Your 3PL partner should have direct experience working in the agriculture industry. Other areas to focus on include:

  • Customer communication: You should be aware of who you can refer questions to with a 3PL logistics provider.
  • Contract terms: A service contract should be mutually beneficial. Investigate how long an agreement will last.
  • Inventory management: Ask how a 3PL partner intends to store perishable and nonperishable items for you.
  • Shipping visibility: Logistics experts must have technology in place to enable you to see where items are 24/7.
  • Value-added services: Check what types of additional services are available for you, like kitting and assembly.
  • FTL and LTL: The right 3PL partner will offer more than one option for shipping the quantity of goods you need.

Crown LSP Group Is Here to Help You

Crown LSP Group is a 3PL and distribution solutions company that takes pride in handling agricultural shipping responsibilities for you. From storing your agricultural products and fulfilling orders to overseeing warehouse management tasks, our team goes the extra mile for you to increase efficiency, profits and visibility.

Our locations in North Carolina allow us to transport products throughout the eastern part of the United States, including parts of Virginia, South Carolina and Georgia. Scaling your agricultural operations is straightforward, as we allow you to transport raw materials or finished goods from farms across our service area.

Crown LSP Group differentiates itself from other 3PL companies by being a family-owned business that provides custom solutions.

Get in Touch With Us for a Service Quote

At Crown LSP Group, we build business partnerships, not transactional relationships. Our goal is to help you take a hands-off approach to agricultural logistics operations so that you can focus your attention elsewhere. Working with our experts means you collaborate with a reliable, friendly and knowledgeable logistics partner.

Our business has been serving professionals like you since 1987. Reach out to Crown LSP Group for a quote to get started.

Get in Touch With Us for a Service Quote

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Navigating Pharmaceutical Regulations With Reliable 3PL Partners

October 10, 2024 John Griffin 3PL

Navigating Pharmaceutical Regulations With Reliable 3PL Partners

The pharmaceutical industry is among the most heavily regulated. Many of the industry’s regulations relate to domestic and international logistics. Pharmaceutical companies balance compliance with profitability when shipping drugs to wholesale distributors or directly to pharmacies and health care providers. Third-party logistics (3PL) companies with pharmaceutical industry expertise can help manufacturers remain profitable by satisfying regulations within an efficient shipping infrastructure. Choosing an experienced 3PL partner promotes pharmaceutical compliance and revenue growth.

Understanding Pharmaceutical Regulations

Various governing bodies regulate the pharmaceutical industry with the goal of protecting patients. Regulators seek to ensure pharmaceutical manufacturers utilize shipping practices that prevent product damage, spoilage, loss and theft. Numerous regulations promote safe freight packaging, climate control, record keeping and more.

Pharmaceutical shipping regulations come from numerous prominent organizations, including the United States Food and Drug Administration (FDA), the European Medicines Agency (EMA), Health Canada and the World Health Organization (WHO). The following are some of the most impactful regulations and guidelines for pharmaceutical shipping.

Code of Federal Regulations Title 21

Title 21 of the Code of Federal Regulations (CFR) is the set of policies that the FDA can uphold under the Drug Supply Chain Security Act (DSCSA). The DSCSA amends the Federal Food, Drug, and Cosmetic Act (FFDCA). The code requires pharmaceutical shippers to follow any product storage temperature and climate conditions that manufacturers provide on product labels or other official documents. It also covers topics relating to the cleanliness, sanitation, organization, monitoring and documentation of pharmaceutical shipping facilities, shipping assets and practices.

Good Distribution Practice (GDP)

Good Distribution Practice is a set of EMA quality standards that a product must maintain throughout the supply chain. Shipping companies are responsible for ensuring the product continues to satisfy quality standards when it reaches its destination. Complying with these guidelines requires secure, climate-sensitive storage during shipping. Shippers must also verify a product’s age and provide timely transportation to align with turnover requirements.

Health Canada’s Guidelines for Environmental Control of Drugs During Storage and Transportation

Health Canada offers guidelines to help pharmaceutical shippers comply with the Canadian Food and Drugs Act. Like Title 21, Health Canada GUI-0069 establishes standards for warehousing, storage and product transportation. It also covers standards for containers and container labeling, receiving and documentation.

WHO Guidelines on the International Packaging and Shipping of Vaccines

The WHO Department of Immunization, Vaccines and Biologicals establishes guidelines for packaging and shipping vaccines. These guidelines influence the regulations and standards that nations worldwide implement for vaccines. Packaging, temperature monitoring during shipment, storage volume, labeling and packaging, and shipping and arrival are each key components.

Challenges Meeting Regulations

Pharmaceutical companies are responsible for understanding and applying domestic and international regulations for compliant packaging and transportation. These regulatory responsibilities compound with general shipping management work and the processes of developing, marketing and selling pharmaceutical products. Failing to comply could cost the pharmaceutical company money in violation fees and lost revenue. Managing so many responsibilities can spread a manufacturer’s resources thin.

The Role of 3PL Partners in Pharmaceutical Shipping Compliance

Pharmaceutical manufacturers can navigate the complex shipping regulation landscape by partnering with a company that specializes in shipping. A 3PL company can manage the planning and execution of shipping strategies for its clients. These companies have robust internal shipping resources, including personnel, trucks, warehousing facilities, material handling equipment and packaging tools. They may also offer capabilities like freight brokerage to connect clients with a cost-effective outsourced shipping solution.

Crown LSP Group is a 3PL company with resources and expertise relevant to the pharmaceutical industry. As an experienced pharmaceutical industry 3PL partner, we help manufacturers comply with all relevant regulations while continuing to deliver on efficiency goals and meet delivery timelines. Our combination of logistics and pharmaceutical industry experience positions us to apply pragmatic solutions to our clients’ most prominent logistics challenges.

Benefits of Partnering With Reliable 3PL Providers

Partnering with an experienced 3PL company like Crown LSP Group creates numerous benefits for pharmaceutical manufacturers.

Logistics Dedication

The primary advantage comes from the 3PL partner’s time and resources. Where pharmaceuticals generate value from drug production, shipping is a 3PL company’s primary focus. They have the time, money, transportation and warehousing tools, and personnel to perfect the shipping process, even when navigating the complexities of pharmaceutical compliance.

Shipment Timeline Management

Our broad range of 3PL services and assets promotes timely shipment. We optimize our shipping routes and maintain a robust shipping fleet to manage tight delivery deadlines.

Pharmaceutical Product Preservation

We maintain specialized shipping resources like temperature- and climate-controlled warehouses and freight. Our pharmaceutical-focused logistic capabilities simplify product security, whether shipping a full truckload of sensitive medicinal products or adding them as a partial truckload shipment.

Revenue Optimization

With our help, pharmaceutical manufacturers enact efficient, compliant shipping practices that maximize revenue from sales. Products arrive on time and in proper condition, maintaining our partners’ positive relationships with their customers while avoiding fees for regulatory violations or the cost of shrinkage.

Pharmaceutical Regualtion Compliance

Our 3PL expertise coincides with pharmaceutical industry awareness. We maintain specialized equipment and provide training to build our services around the regulations dictating pharmaceutical shipping procedures. From storing products at the proper temperature to recognizing packing defects and documenting critical steps, we mitigate compliance risks for pharmaceutical manufacturers.

Choosing the Right 3PL Partner

Choosing a 3PL partner is a significant decision that will impact your revenue and risk potential. There are numerous options to choose from, and some will align with your business’s needs better than others — both now and in the future that you envision for your company. Such alignment is especially crucial in the highly regulated pharmaceutical industry.

Research your potential partners and ask them questions to determine if they offer the following qualities:

  • Broad services capabilities
  • Experience with pharmaceutical products
  • Connections with distributors, third-party shippers and other stakeholders
  • Proximity to your manufacturing facilities to distribution partners
  • Cost-effective shipping services that add value
  • A positive reputation with pharmaceutical companies and other customers
  • Conscientious security equipment and policies
  • Shipment monitoring technology

Compliant Logistics for the Pharmaceutical Industry

Shippers must secure pharmaceutical products to maintain their intended effects. Doing so protects patients and ensures compliance with the regulations that govern the pharmaceutical industry. Third-party logistics providers have the expertise and resources to transport pharmaceutical products safely and efficiently.

Crown LSP Group is a leading logistics partner for businesses in the pharmaceutical industry. We have a long history of providing valuable logistics services to pharmaceutical companies in North Carolina, South Carolina, Virginia and Georgia. Our qualifications and customizable service options position us among the best 3PL partner options for your industry.

Contact Crown LSP Group for Pharmaceutical Logistics

We are ready to maximize your revenue by facilitating efficient, compliant shipping. Please request a quote online to begin a discussion about your pharmaceutical shipping needs and our robust solutions.

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Utilizing 3PL for Efficient Export and Import of Food Products

July 30, 2024 John Griffin 3PL

As your business grows and expands into global markets, utilizing third-party logistics (3PL) can enhance and streamline your processes for exporting and importing food products. Either process can be time-consuming and challenging, and food product export and import require industry expertise for precise execution.

3PL services mitigate the complexities of moving products across borders and help you navigate the web of intricate rules and regulations. Whether you’re new to global trade or looking for ways to optimize your operations, outsourcing these services to a 3PL provider can give you access to their expertise, resources and international networks.

It’s important to explore 3PL services and examine their role in exporting and importing food products and ensuring regulatory compliance for these processes.

Understanding 3PL Services

Before exploring the role of 3PL in food product export and import, it’s essential to understand what these services entail. 3PL involves outsourcing a range of supply chain functions to a service provider that specializes in transportation, logistics and distribution. At its core, 3PLs help businesses store and move their products efficiently.

3PL services can vary depending on the provider you work with. You need to understand the provider’s capabilities and how they meet your needs. For example, a full-service distribution solutions company like Crown LSP Group handles all kinds of supply chain operations, including warehouse storage, inventory management, transportation and order fulfillment.

Utilizing 3PL for efficient export and import of food products can help streamline supply chain operations. As experts in international trade, they can also handle complex logistics tasks, including customs procedures. You can benefit from the expertise and resources of a reputable 3PL provider. Even when importing or exporting food products, these services can lead to cost savings and more accurate shipping.

Additionally, 3PL services help ensure regulatory compliance in import and export processes related to food safety and international trade, reducing the risk of errors or delays in the supply chain.

The Role of 3PL in Food Product Export

While introducing your products to international markets signifies growth for your business, the opportunity can also bring new challenges and complexities in managing your supply chain operations. Coordinating the movement of food products across borders requires a level of expertise and resources that may involve additional time and effort for companies when keeping it in-house. That’s where 3PL services come in!

As experts in the field, 3PL providers can facilitate the efficient export of food products. An experienced 3PL partner, like Crown LSP Group, leverages industry expertise, expansive infrastructure, resources and international networks to navigate the complexities of exporting food products.

Partnering with a 3PL for food product export can lead to smoother operations, timely deliveries and enhanced overall performance in the global market.

3PL Services for Food Product Export

3PL providers offer a range of services to help address the processes of exporting food products. Here are some of the key export services they provide:

  • Transportation: As the backbone of any supply chain, efficient transportation is critical for food product export. 3PL providers have strong relationships with a network of carriers and will often provide freight brokerage to negotiate cost-effective rates and optimize transportation routes. With 3PL services from Crown LSP Group, you can choose the best-suited transportation solutions, reduce costs and ensure timely product delivery.
  • Warehousing: 3PL partners provide temperature-controlled warehouses ideal for storing and handling food products. The warehouses are usually strategically located to facilitate easy export and act as hubs for inventory management, distribution and order fulfillment.

The Role of 3PL in Food Product Import

International trade is inherently complex, especially when food products are involved. Managing the movement of food products sourced from another country involves a great deal of planning and coordination. A 3PL partner can provide the experience and expertise needed to navigate the intricacies of import logistics.

It’s essential to work with an expert 3PL partner who is well-versed in international trade and offers a range of scalable solutions, like Crown LSP Group. Utilizing 3PL services can help you streamline import processes, minimize delays and ensure regulatory compliance.

3PL Services for Food Product Import

3PL partners play a crucial role in facilitating food product import, especially for businesses that are new to international trade or expanding their offerings. Here are some of the primary 3PL services for food product import:

  • Customs clearance: Customs clearance is a necessary procedure in food product import that involves several processes such as taxes, duties and documentation filing. 3PL providers help with customs clearance by ensuring that import shipments comply with regulations and that other processes are followed properly.
  • Warehousing: 3PL partners offer warehousing with ideal conditions for storing imported food products. They can also optimize several warehousing operations by improving inventory accuracy, reducing stock holding periods and implementing efficient order fulfillment processes.
  • Freight forwarding: 3PL partners specialize in freight forwarding services, facilitating the movement of products from one country to another through efficient transportation. On top of helping you find the most suitable transportation for your goods, these services also include other tasks such as arranging pick-up and delivery, determining the most efficient routes and managing transit times.

Regulatory Compliance in Import and Export

The Food and Drug Administration (FDA) has set rules and regulations for importing and exporting food products. Businesses must ensure that their products meet the U.S. requirements for safety, sanitation and labeling to comply with food product import regulations. On the other hand, food product export regulations require your products to meet the laws set by the U.S. and the country you’re exporting to.

Collaborating with a 3PL partner, like Crown LSP Group, can help your business comply with these regulations. 3PL providers are well-informed about import and export regulations and keep up with all the changes made to the rules. They know how to handle the unique challenges and requirements of each country.

As experts in international trade, 3PL providers can assist you with managing and preparing the necessary documentation. They handle customs documents such as certificates of origin, bills of lading, commercial invoices and more.

Choose Crown LSP Group for Your Import and Export Needs

Businesses can benefit significantly from working with a trusted 3PL partner to navigate the complexities of international trade. Utilizing 3PL for efficient export and import of food products allows you to better manage the global movement of goods by optimizing logistics tasks like transportation, warehousing and customs clearance. With 3PL, you can also ensure regulatory compliance in import and export.

As a leading distribution solutions company with decades of experience, Crown LSP Group is the go-to source for all your 3PL needs. We offer a comprehensive range of customizable services, from warehousing to order fulfillment. Whether you need 3PL for food product import, export or both, we will tailor our solutions to meet your supply chain operation needs.

Contact us to learn more about our 3PL services today!

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Strategies to Reduce Out-of-Stock Situations With 3PL 

July 29, 2024 John Griffin 3PL

No matter what industry you’re in, dealing with out-of-stock situations can lead to frustrations for both your business and your customers and clients. Whether it’s due to production delays from your suppliers or a sudden increase in demand for your products, ineffective inventory management practices can negatively impact your business’s efficiency and bottom line.

Being able to manage inventory effectively — even as needs and demands change over time — is crucial. With third-party logistics (3PL) services, you can reduce these occurrences. These services are designed to improve the way you manage your inventory and handle your end-to-end supply chain.

Here at Crown LSP Group, we provide 3PL inventory management to keep your business running at peak performance. As your one-stop shop for supply chain and warehousing needs, we will do what it takes so that your business always has sufficient stock to meet your customer and client demands. Whether it’s your goal to just remain ahead of your inventory or to expand into new territories, we’ll help you reach your goals.

Understanding Out-of-Stock Situations

When you partner with a third-party logistics provider like Crown LSP Group, you’ll be able to experience peace of mind knowing a dedicated team of experts is overseeing all of your inventory management needs. Whether you’re in the health care, e-commerce, automotive or pharmaceutical industry, we’ll optimize your operations and reduce the chances of out-of-stock situations.

Here are a few ways we can improve your inventory management process:

  • Ensure you have a safety stock: One of the most effective ways to keep out-of-stock situations from happening is to have a safety stock. Having a surplus of stock allows you to continue serving your customers even as the demand increases. We’ll ensure your business maintains a good balance of in-demand and surplus stock so you are equipped to meet changing needs.
  • Optimize operations: Our team can assist with streamlining your entire operations process. There are several ways we can optimize your end-to-end logistics, ranging from monitoring lead times to looking into different transportation options. We’ll make sure that your inventory moves as quickly and efficiently as possible throughout the entire process.
  • Automate tasks: Automating some aspects of your inventory management process can also prevent out-of-stock situations. Inventory management tools can make it easier for you to see exactly which products you have in stock and how many you have. You’ll be able to prevent manual mistakes and be well-prepared to meet customer demand.

Benefits of 3PL in Inventory Management

With 3PL, you’ll be better equipped to manage inventory and reduce out-of-stock situations. When you partner with Crown LSP Group, you’ll be able to take advantage of benefits like:

  • Working with a trusted team that will streamline logistics operations and boost business efficiency
  • The ability to focus on higher-priority goals while we handle day-to-day tasks
  • New opportunities for expansion and growth
  • Reduced storage and fulfillment costs

Strategies to Reduce Out-of-Stock Situations With 3PL

There are several strategies to reduce out-of-stock situations. At Crown LSP Group, we’ll get to know your business’s needs and goals to provide you with the best approach.

We offer several comprehensive strategies, including:

  • Order fulfillment: We’ll make sure your business is able to meet consumer demands with a more reliable and effective order fulfillment process. From receiving stock at a warehouse to delivering products to consumers, order fulfillment covers several steps. As part of our service, we’ll handle everything for you, including managing orders and processing returns and refunds.
  • Inventory tracking: Our team can both track and restock your inventory for you. We rely on various technologies to enhance your business’s efficiency and inventory accuracy. With technologies ranging from barcode scanning to radio-frequency identification (RFID), you can experience peace of mind knowing your day-to-day operations are being taken care of by our professional team.
  • Demand forecasting: We also offer a range of demand forecasting tools that will keep you informed on the latest trends and demands. Trends like augmented reality (AR) in e-commerce order fulfillment could have a significant impact on your warehousing operations. Staying up-to-date on these changes will allow you to adapt more quickly to your customer’s needs and market changes.

Why Trust Crown LSP Group for Your Inventory Management Needs

Since we were founded in 1987, our 3PL company has been supporting the unique needs of businesses throughout our community. As a family-owned business, we take pride in serving our local customers by delivering the warehousing, transportation and logistics services they need, along with an array of value-added services.

When you trust us, you’ll receive more than just 3PL solutions. We understand that your business’s needs and goals are unique, which is why we don’t offer a one-size-fits-all approach. Instead, we create customized solutions that fit your business. We’ll personalize our inventory tracking methods, reporting options and fulfillment services to make sure your specific needs are taken care of.

Our services are also flexible, allowing us to change as your business does. We can easily adapt and scale our services depending on your inventory demands, needs or challenges.

Ready to Reduce Your Out-of-Stock Situations With 3PL Solutions?

While it’s not possible to completely eliminate out-of-stock situations, there are ways you can minimize the chances these issues will happen and negatively impact your processes.

Throughout our decades in business, we’ve developed the 3PL solutions businesses can rely on to meet changing warehousing and distribution demands. As your trusted partner, we’ll do what it takes to meet your goals and deliver the best possible customer service experience. We understand the most effective ways to optimize your inventory management process and save on expenses. When you choose our 3PL services, you can take advantage of benefits ranging from cost savings to an immediate and positive effect on your bottom line.

If you have any questions or want to learn more about our 3PL services, we invite you to give us a call at 252-985-1070 or request a quote if you’re ready to get started.

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How Third-Party Logistics Empowers Retail Startups

March 8, 2024 John Griffin 3PL, E-commerce, Order Fulfillment

A third-party logistics (3PL) provider is a partner you outsource your shipping and fulfillment processes to. For retail startups, 3PL providers will pick, pack and ship your products to deliver to buyers or to brick-and-mortar stores. Shipping and logistics have become increasingly important processes in all businesses, including retail. As more people expect convenient product deliveries, your startup will need to meet consumer demand.

The Role of 3PL in Retail Startups

Retail startups have two core responsibilities: creating products to sell and delivering them to consumers. However, in the startup atmosphere, creating products is priority number one, making 3PL providers ideal partners in keeping startup retailers afloat.

As new retailers build their audiences, new products help to establish the brand and keep buyers interested. The process behind product development is intensive. Startups need to design products, source materials, find manufacturers for the products and grow stock to sell. With a 3PL, outsourced providers handle all of the steps that go into shipping, freeing up the resources to focus on production.

For many startups — retail or otherwise — teams are often very small, and each person has to juggle multiple responsibilities. While every employee could have a role in product development, there are also other processes to consider, like marketing and bookkeeping, that help the business grow. Adding logistics responsibilities to this long list can overstretch a small team and ultimately limit mobility.

Working with a 3PL gives your retail startup the space to scale and grow. Allow a partner, like Crown LSP Group, to handle fulfillment while your team focuses on the processes that bring in new buyers.

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Advantages of 3PL for Startups

Choosing a 3PL partner offers plenty of advantages to your retail startup.

Cost-Effectiveness

In-house supply chain management is no easy feat, even for large businesses with plenty of resources. Retail startups that are still finding their footing often lack the financial resources to add a single supply chain expert to their team, let alone a whole department. Internal supply chain processes require warehousing resources as well.

While outsourcing might feel like an extra expense, it’s still a much more effective use of your startup’s funds. Plus, a focused supply chain organization can reduce challenges in inventory management and prevent time-consuming customer service needs that your team might not have the time for.

Streamlined Processes

With so many processes to pay attention to at a retail startup, your shipping tasks are prone to being disorganized. Add this to a lack of resources, and your fulfillment procedures become inefficient. A 3PL focuses on shipping and logistics alone. These companies have the experience to manage fulfillment with ease and efficiency, so you can meet every order request.

Today, online shopping is the main way people shop, and many of them will expect orders on their doorstep within a week. If you’re a retail startup with an online store or a store that exists solely online, you need to meet these modern demands. A 3PL has the focused processes to help you achieve that.

Adaptability and Scalability

A 3PL provider is prepared to adapt to your needs and scale with your business. These providers offer extensive resources in the world of fulfillment and logistics, giving them the ability to adjust their services for your startup as you need them. While this is valuable for your retail startup as it grows quickly, it’s also helpful for slower periods when you may need less support based on consumer behaviors.

This adaptability means your team can rely on the same provider throughout the life of your business. You don’t have to abandon your partnership when your needs shift because a 3PL is ready to respond to these changes.

Specialized Knowledge

In the world of shipping and logistics, there are various concepts you need to understand to effectively manage the flow of orders and meet fulfillment requirements. Between planning and coordinating shipments, organizing a warehouse and tracking goods through labeling, fulfillment can be challenging to manage.

With a 3PL, you’re partnered with a team of experts who understand what it takes to handle all of these processes. Rather than having to learn these concepts yourself, you can count on specialists with years of experience in the field. This expertise also means your 3PL partner can handle these processes efficiently.

Network Access

A 3PL company typically has multiple warehouses and may even have a nationwide network your startup can rely on. This network access greatly benefits your growing business because it allows you to reach more buyers in less time.

With modern buyers expecting fast shipping times, this network access allows you to meet consumer demand. A wider reach also allows you to capture a larger audience in the early stages of your startup.

Advanced Technology

Technology is a major player in logistics and fulfillment as well. If you choose to handle fulfillment internally, these technologies might not be available to you. A 3PL expertly leverages shipping technologies to improve efficiency and accuracy in the fulfillment process. Possible technologies used by 3PLs include:

  • Warehouse management system (WMS).
  • Automated fulfillment technologies, like barcode scanners and conveyors.
  • Inventory management system (IMS).
  • E-commerce integrations.

These technologies pair with a 3PL’s specialized knowledge to create a well-oiled machine. Your 3PL partner will seamlessly receive an order, retrieve the item from the warehouse and ship it out.

Selecting a 3PL Provider

With all the benefits of outsourcing logistics to a 3PL provider, your next step is to find one. Since these providers are essential partners in the success of your business, you need to choose one wisely. Consider the following factors when selecting a 3PL.

Customization

An ideal 3PL is able to customize all of your shipping items to reflect your brand. If you have specific packaging, labels and packing slips, your 3PL should use all of these custom items in your fulfillment processes. This customization is how a 3PL becomes a true extension of your team, not a removed third party.

When you’re searching for a 3PL provider, questions about customization should be at the forefront of your exploration. It’s in your best interest to work with a provider that tailors services to your unique needs, making your 3PL an excellent invisible extension of your retail startup.

Customer Service

To build a trustworthy relationship with your 3PL, you need a provider that’s committed to excellent customer service with your startup. Customer service is valuable for building trust with any outsourced provider. In the case of a 3PL, you need confirmation that your provider is invested in excellence and quality, as it will reflect back on your growing business.

In logistics and fulfillment, customer service is also important for keeping you informed. Details about elements like estimated delivery times and cost optimization can streamline logistics and give you confidence that processes are running smoothly.

Responsiveness

Logistics needs can change in an instant. Between canceled orders, recalls, returns and supply chain disruptions, you need a 3PL that’s ready to act in the face of these unexpected changes. When looking into a 3PL, you can ask about their processes regarding supply chain issues and sudden changes in order volume or destination.

For example, at Crown LSP Group, our team uses a series of technologies to maintain transparency in the shipping process. While this transparency is valuable for communication with your brand, it also allows us to see potential bottlenecks in the process and respond to them immediately.

Flexibility

A 3PL that can grow with you is one of the major benefits of outsourcing fulfillment. When selecting a 3PL provider, make sure they have the resources and flexible services to adapt to your changing requirements. It’s helpful to look out for value-add services. These solutions can be introduced to standard warehousing and logistics processes based on what your company needs.

Crown LSP Group offers a range of value-add services, including:

  • Reverse logistics
  • Cross docking
  • Transloading
  • E-commerce fulfillment
  • Inventory management
  • Kitting and assembly

Services like these illustrate a 3PL’s capabilities and their ability to adapt to your retail startup as the business grows.

Reputation

When a 3PL has a good reputation, you can feel certain they deliver on their promises. Choose a provider that is well-established and may even come highly recommended by other businesses. Looking into customer reviews online can give you a good idea of a provider’s reputation before you work with them.

Another way to tell if a business is well-established is by looking at its list of services. A highly experienced 3PL will have a wide range of solutions and will often highlight a turnkey approach in the process.

Explore 3PL Solutions From Crown LSP Group

Retail startups need a trustworthy logistics partner to keep their consumers satisfied and align with modern expectations. While you can attempt to manage these processes in-house, you can gain more from a focused expert. As a startup, growth is a top priority, and an experienced logistics team can help you achieve that growth.

Crown LSP Group is a distribution solutions company that can help your retail startup thrive. Get started with us today and request a quote.

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warehouse workers preparing a cross dock shipment

Common Industries That Use 3PL Services

August 3, 2023 John Griffin 3PL, E-commerce, Logistics, Order Fulfillment, Transportation, Warehousing

Partnering with an experienced third-party logistics (3PL) provider offers modern businesses many benefits, such as helping manage supply chain risks more effectively while enabling more efficiency. This strategy also helps support future growth by improving customer service and satisfaction.

Since this solution is useful for businesses across many industries, let’s explore what companies use 3PL, why and how.

E-Commerce and Retail

E-commerce skyrocketed during the pandemic, when shoppers didn’t have access to traditional marketplaces. In 2021, the industry generated over $5 billion in sales. The trend shows no signs of slowing as consumers continue to enjoy online shopping’s convenience. Economists predict the market will grow 56% by 2026 and generate over $8 billion in revenue.

This increase drives demand for e-commerce order fulfillment services and more efficient logistics. A 3PL partner can carry out tasks like last-mile delivery so that customer products arrive on time and in good condition, regardless of where they are. Plus, these providers can help with reverse logistics and returns processing to maintain great customer service.

Online retailers also rely heavily on their 3PL providers for inventory management solutions. The insights a 3PL firm provides into product stock let e-commerce pros know the status of the goods at a glance. As a result, companies get the data they need to place supply orders and schedule production to avoid stockouts, keeping their customers happier.

Third-party logistics companies help traditional retail stores support their operations, as well. Businesses providing 3PL solutions offer short-term storage and long-term warehousing services to meet seasonal demand changes. They also supply cost-effective solutions like cross-docking, simplifying goods distribution and increasing delivery speed.

Manufacturing and Distribution

Goods manufacturers and distributors face many pain points in the supply chain. Manual processes and in-house storage and shipping operations can be expensive, and inefficient transportation further increases operating costs. Effective raw material movement is vital to promoting continuous production and preventing downtime that may result in unsatisfied customers.

An experienced 3PL provider like Crown LSP Group is an ideal solution, serving as a strategic business partner that offers solutions such as:

  • Warehouse storage: We can accommodate your long- and short-term storage needs to help you gain the redundancy just-in-time manufacturing requires.
  • On-site warehousing services: Our team provides on-site operational support for your facilities, eliminating the high labor costs of staffing and managing it independently.
  • Transportation services: Crown LSP Group is an expert in freight brokerage and specialized shipping to help you cost-effectively ensure accurate and timely raw material deliveries.
  • Order fulfillment services: We streamline last-mile distribution with fast delivery that improves customer satisfaction and prevents you from having to hire and manage ground-level fleets countrywide.

We also offer end-to-end inventory management services that help you optimize your stock. Our technology includes automated solutions that end manual processes, boosting accuracy, visibility and time savings. Crown LSP Group has a demand forecasting system for better planning, as well.

Health Care and Pharmaceutical

The health care and pharmaceutical markets represent two of the most common types of companies that use third-party logistics to solve their unique challenges.

Health care and medical supply companies frequently serve worldwide markets where patient lives and clinical outcomes depend on timely deliveries. A delayed shipment can leave an organization without the necessary supplies to deliver care. Further, these products often need specialized shipping to protect them against potential damage during transport.

Experienced 3PL providers play a critical role in health care and medical logistics by helping solve these complex issues. Warehousing services keep products strategically located for faster order fulfillment, and transportation services like less-than-truckload shipping ensure quick delivery for smaller orders. Additional solutions, such as drayage shipping, keep intermodal journeys on schedule.

Pharmaceutical companies face similar challenges when storing and shipping essential medications and treatments. They frequently need controlled atmospheres to preserve product safety and integrity and cold chain solutions to maintain those conditions throughout shipping. Those who do business with the European Union must also follow the Good Distribution Practice (GDP) framework, which contains the minimum guidelines for the industry’s supply chain.

A knowledgeable and reliable 3PL firm can manage these complexities with services like temperature-controlled storage and transloading, supporting product safety and compliance.

Food and Beverage

Food and beverage companies have numerous regulations applying to their supply chain management. For example, the Food Safety Modernization Act (FSMA) requires product traceability to help contain food-borne illness outbreaks. These businesses also need ways to manage stock rotation to ensure that products arrive fresh and safe for consumption.

Inventory management services from a 3PL provider solve these issues and support compliance. The right partner will have the technology to track goods at every step, like Radio Frequency Identification (RFID) and bar code systems. With real-time visibility, 3PL companies can also support just-in-time deliveries of perishable goods to cut waste and meet specific customer needs.

Food producers and distributors must focus on preserving their goods’ flavors and maintaining availability for out-of-season items, as well. This requirement often necessitates a well-controlled storage and shipping environment.

Full-service food and beverage logistics providers have solutions for these challenges, too. Temperature-controlled warehousing and specialized cold-chain shipping expertise help companies supply their customers with fast product delivery at the peak of freshness and taste while conforming to food safety laws.

Automotive and Transportation

Automotive and transportation professionals are among those who use 3PL services to drive organizational value. Thanks to the nature of their business, these companies serve multiple customers, from individual consumers to dealer partnerships.

The supply and distribution challenges of these companies include storing and shipping large, expensive items, smaller replacement components, and care or repair kits. The latter results in a greater need for inventory control to minimize waste, maximize efficiency and meet customer expectations for fast delivery.

An agile 3PL partner like Crown LSP Group has the expertise and resources to help with automotive logistics, with services like:

  • Short- and long-term warehousing: We’re close to the eastern North Carolina ports and can scale with your changing business needs.
  • Vehicle shipping: With our freight brokerage services, we leverage our relationships with a deep network of transportation partners to find you competitive rates for large deliveries.
  • Asset-based transportation: We can use our contacts for asset-based transportation services that provide the peace of mind of owner-operated equipment.
  • Kitting and assembly services: Our team adds extra value to the process with kitting and assembly services that improve the consumer experience.
  • Other value-added services: Crown LSP Group is also an expert in inventory management and rapid order fulfillment.

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Other Industries

Firms providing 3PL services customize their services to streamline storage and distribution operations for various other crucial economic sectors, including technology, energy, construction and fashion.

Construction and Engineering

A successful construction project requires numerous materials that often arrive from different suppliers at various locations. Seasoned 3PL providers can combine these deliveries to help ensure all materials come on-site together and are ready to use, which allows you to please clients with jobs that move forward on time.

Technology and Electronics

Modern technology is highly sensitive to damage during storage and transport. A 3PL provider understands what’s involved in protecting these delicate and often expensive goods. They take the extra steps to develop specialized storage and shipping strategies to safeguard the products.

Energy and Utilities

Oil, gas and other energy companies have multilayered, complex supply chains with many moving parts to coordinate. Partnering with a 3PL firm lets them outsource the variables to a knowledgeable business that provides access to the latest technology and support services, such as intermodal transportation expertise.

Fashion and Apparel

The fashion and apparel industry is a high-SKU, high-turnover environment. As a result, businesses in this field have frequently changing storage needs. A 3PL company offers flexible storage, fulfillment and inventory management based on individual needs, and these customized approaches allow businesses to use their resources more effectively.

Trust Crown LSP Group as Your 3PL Partner

Companies in many industries regularly turn to Crown LSP Group for tailored supply chain management solutions. From automotive and consumer packaged goods to life sciences and food, we help companies optimize efficiency and allow them to focus on their core operations.

Request a personalized quote, or contact a specialist online for more information.

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Why Logistics Management Is Key to Business Success

July 16, 2023 John Griffin 3PL, Logistics

Managing logistics with Crown LSP Group promotes an organized flow of inventory operations from start to finish. It helps you efficiently fulfill the demands and expectations of both customers and people in your organization. In this post, you’ll learn about the importance of logistics management for businesses and the benefits it provides for your operations.

What Is Logistics Management?

Logistics management is the process of planning, organizing and executing an operation. It ensures the effective receiving, storage and transportation of inventory from its origin to its destination. That way, customers can receive their products at the right time and location.

For example, managing logistics in a warehouse might involve tasks like:

  • Material handling and storage.
  • Incoming and outgoing transportation management.
  • Fleet management.
  • Supply and demand planning.
  • Logistics network design.
  • Order fulfillment.
  • Inventory control.
  • Product packaging.

Logistics management entails everything from information flow to materials and production. It helps keep all product phases running smoothly and prevents operations from crumbling.

An experienced logistics management company like Crown LSP Group can work with you to optimize your inventory, cut costs and overhead, improve efficiency, and ultimately boost revenue and customer satisfaction.

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The Importance of Logistics Management

Logistics may focus primarily on inventory, but it goes much further than that. Successful logistics management leads to numerous long-term benefits, including:

  • Increased efficiency.
  • Higher production rates.
  • Reduced operational costs.
  • Streamlined inventory control.
  • Better use of warehouse space.
  • Improved customer experience and satisfaction.

All of these factors contribute to successful business operations. Below, we’ll look at the advantages proper logistics management can offer your organization.

1. Efficient Supply Chain Management

Logistics management plays an essential role in supply chain management optimization. It helps facilitate the flow and storage of products. Additionally, it helps oversee the documents and reports regarding these movements. Logistics also help control the different transportation methods that move products from point A to point B.

An efficient supply chain reduces the need to maintain inventory. In turn, it decreases overhead costs associated with storage and security. These factors collectively help streamline your flow of goods and services. A more efficient supply chain and product management system can result in a more positive experience for the customer, increasing their overall satisfaction and retention.

2. Cost Reduction and Profitability

Part of logistics management is understanding major expenditures associated with inventory warehousing, distribution and transportation. Analyzing your costs can help you find opportunities to reduce unnecessary spending and use funds more resourcefully.

Effective logistics balance inventory levels, give you more control over inbound freight, help goods reach the correct transportation modes and organize the reverse flow of goods. All of these can reduce costs considerably.

Logistics management can decrease overhead costs by automating and optimizing different tasks, like storage, packaging and shipping. By managing inventory levels based on supply and demand, you can avoid purchasing excess or inadequate logistics supplies.

Here are some specific ways logistics management can help cut costs and increase profitability:

  • Optimized storage: Knowing the dimensions of forklifts allows you to organize storage by the aisle dimensions needed for forklift access. Using tall, narrow racks reduces the required square footage, helping you cut storage costs.
  • Inventory protection: In the United States alone, about $163 billion worth of inventory is tossed annually due to damage and oversupply. Proper inventory control and storage can help minimize damaged goods, misplacements, theft, overstock and understock.
  • Enhanced product transfer: Logistics planning ensures more efficient product movement and distribution, which helps decrease costs. For example, cross-docking is the process of unloading inbound delivery vehicles, then loading them directly onto outbound delivery vehicles. It reduces the need to store products in a warehouse, eliminates the need for large warehouse spaces and cuts down on packaging, saving time and money.
  • Vehicle performance: Logistics management can help your organization save money by planning and optimizing preventive vehicle maintenance. Routine maintenance helps prevent costly breakdowns, repairs and replacements.

3. Improved Customer Satisfaction

Logistics optimize internal and external communications, promoting transparency in your operations. As a result, customers have more insight into when their order will be delivered. They can also receive more efficient customer service and answers to their questions regarding delivery.

Additionally, an effective logistics strategy helps inventory reach the customer in quality condition, improving the buyer’s satisfaction with the product and company. Logistics management plays a pivotal role in timely deliveries, accurate order fulfillment and effective communication, all of which foster a positive customer experience and brand loyalty.

4. Risk Management and Mitigation

A supply chain disruption occurs when an external force hinders your organization’s ability to receive, assemble, store, ship or distribute products. These disruptions cost large companies about $184 million in lost revenue annually. Furthermore, nearly 60% of small and mid-sized business report losses of 15% or greater due to supply chain delays.

Some examples of supply chain disruptions include:

  • Demand drops and surges.
  • Labor shortages.
  • Storage and access restrictions.
  • Raw material shortages.

Crown LSP Group can help you analyze the market and plan for these potential disruptions. Developing a risk management and contingency plan helps you prevent and address these disruptions to your operations. Besides supply chain disruptions, you’ll want to plan for other risks and hazards, such as:

  • Slips, trips and falls.
  • Falling objects.
  • Fires.
  • Harmful substance exposure.
  • Equipment malfunctions.
  • Floods and water damage.
  • Product loss, theft, damage, understock or surpluses.

Proper logistical planning can help you identify and mitigate supply chain risks, responding effectively to disruptions. Additionally, it teaches warehouse staff the correct procedures for safe product and equipment handling, helping prevent unwanted incidents and injuries.

5. Competitive Advantage

With the increasing digital demand, customers expect more efficiency than ever before. Warehouses must provide fast, quality service to get ahead in the highly competitive market. Logistics management helps companies optimize inventory processes, reduce disruptions and ensure timely deliveries, all of which influence customer satisfaction.

Better customer service and product quality build a positive image for your brand, generating more business and giving you a competitive edge. Implementing technology and software to improve your logistics helps you keep up with industry trends and consumer demands, differentiating yourself from competitors.

Choose Crown LSP Group as Your Logistics Management Company

Logistics management is essential to business success and growth. If you’re looking for a comprehensive logistics services provider serving the east coast, turn to Crown LSP Group for assistance.

Our trusted distribution solutions company has been helping businesses streamline their operations since 1987. We can provide the resources and strategies you need for more cost-effective, efficient inventory processes. Committed to serving our customers and local community, we aim to ensure the best possible service for every job.

Our solutions include warehousing and storage, transportation and logistics, order fulfillment and more. No matter your unique requirements, we’re ready to meet your logistical needs so you can better serve your customers. Contact us today to learn more about how we can help you succeed!

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Top Challenges of Managing Your Own Logistics and How a 3PL Can Help

June 22, 2023 John Griffin 3PL, Logistics

The Top Challenges of Managing Your Own Logistics and How a 3PL Can Help

In-house logistics might sound appealing initially, but when you see all the complications associated with it, outsourced services often emerge as the more effective option. A third-party logistics (3PL) provider specializes in areas of distribution, fulfillment, warehousing and transportation, bringing industry-specific expertise and sophisticated systems to the table while helping you focus on growing your business.

Logistics is a complicated field, especially when you consider the necessary resources, evolving compliance requirements and scalability of your approach. Doing it yourself can be difficult, if not impossible, and 3PL providers often give better service at lower costs. They have skilled teams, sophisticated systems and plenty of expertise. Let’s take a closer look at some of the biggest challenges in transportation and logistics and how 3PL providers address them.

Challenge 1: Limited Expertise and Resources

Most businesses don’t have unlimited funds lying around to create a high-caliber team of logistics experts or buy the latest and greatest software systems and tools. Solving common logistics problems calls for many different resources and professionals who understand the various aspects of transportation, warehousing, compliance, etc. Hiring these professionals and buying resources yourself can be expensive and time-consuming. Consider the costs of hiring new employees, for example, and making room for large pieces of equipment.

A 3PL provider will usually offer their services through affordable, recurring costs without any capital investment on your part. Since logistics is all they do, you can expect a 3PL provider to have a team of highly skilled, well-trained professionals offering expertise in different areas for a fraction of the cost of in-house hiring. Working with a 3PL can significantly reduce the strain on your team and business resources.

Challenge 2: Increasing Complexity and Scale

The supply chain is always evolving, and your business will likely grow. Adapting to these changes is hard to do in-house. If your logistics operations need to scale up, you may need to hire more professionals or buy more equipment. If a new sales channel or technology appears, you may need to modify your approach. These tasks take time and money, and keeping pace with them can be incredibly challenging.

As an outsourced service provider, 3PL partners are ideal for scalability. They can generally accommodate high capacities, and all you need to do is talk over the changes with the provider. Whether your business grows or you want to tackle a spike in sales near the holidays, 3PL providers can adjust accordingly.

Since they offer a wide range of services, a 3PL partner can help you branch out into new areas or try new things without high capital investments. These flexible, scalable solutions can allow you to make business decisions more freely, even in the face of a complicated landscape.

Challenge 3: Operational Inefficiencies and Costs

With so much complexity, it may not be a surprise that in-house logistics are prone to inefficiencies. They often lack the proper technology and infrastructure to move products efficiently. Manual processes, for example, can be much slower than automated systems, and strained budgets can keep businesses from obtaining the necessary automation equipment. Inefficiencies like these can cause delays, bottlenecks and higher costs associated with slower operations. Managing the varying costs of logistics, such as chaotic fuel prices, can also be difficult.

3PL organizations are especially interested in working efficiently and reducing costs. After all, those metrics affect their success, too. They also have the support of expert logistics professionals and sophisticated resources. A 3PL provider continuously optimizes for efficiency and low costs. They may even be able to help you save money by accessing lower rates through their large network of partners. With these partners, you can expect products to move more efficiently for reduced costs.

Challenge 4: Compliance and Risk Management

Staying up to date with compliance and risk management requirements can be a monumental task. Regulatory requirements are always changing, and you must continuously conduct assessments and evaluations to mitigate risks in the supply chain and your business. As requirements change, you’ll need to respond accordingly. Compliance and risk mitigation become increasingly difficult and expensive as you scale and expand a business. For example, some countries prohibit shipping certain items, and you cannot risk violating these laws as you branch into new regions.

Violations can be expensive, both through fines and the additional work required to rectify the situation. They may also be detrimental to your reputation. Avoiding compliance issues is crucial and usually requires an expert. Risk management is similar and often calls for a skilled professional with a pulse on many different industries.

Naturally, a 3PL provider pays attention to regulations and standards and has people on hand to tackle compliance problems and reduce risk. Outsourcing logistics shifts some responsibility onto the 3PL partner while leveraging their expertise in other areas to help you avoid risk and stay compliant. They can be especially helpful in tackling the volatility of the supply chain industry.

Challenge 5: Customer Service and Satisfaction

Logistics plays a major role in the customer experience. While in-house logistics can provide more control over the customer experience, they also create many opportunities for errors and inefficiency. Without an accurate, streamlined system, you will likely introduce delays and inconsistencies, leading to negative interactions with your company.

Sophisticated systems are also essential for providing visibility, which many customers now expect. They want to know when their order will arrive and be able to see its location in real time. Implementing such a system can be difficult, time-consuming and costly. For a 3PL provider, these programs are a central part of the job and solve major logistical challenges. 3PL partners understand them and have the IT support to keep them running smoothly.

3PL partners also run their services like a well-oiled machine, so you can expect fewer delays and errors that would affect your customers. This dependability can provide big dividends for your customer satisfaction ratings.

Additionally, 3PL providers can support your customer service goals with expert guidance. They can work with you to develop a plan that improves the customer experience through direct communication or optimization in areas like efficiency and accuracy. 3PL partners and their long-standing knowledge of the field can be significant assets for impressing your customers.

Overcome Your Biggest Logistical Challenges With Crown LSP Group

In-house logistics may work for some organizations, but those companies often have massive budgets and resources to spend. Taking the job on yourself can entail some significant logistics problems, like scaling the operation, minimizing costs, staying compliant and appealing to your customers. A 3PL provider takes the legwork out of logistics so you can focus more on what you do best. We leverage a skilled team dedicated exclusively to logistics and distribution solutions to help your business thrive and avoid these challenges.

At Crown LSP Group, we have decades of experience in the field and insights across many industries. We work as an extension of your business to reduce costs, improve quality and provide a stellar customer experience every time. Whether you need to scale, accommodate unique products or customize your approach, our knowledgeable professionals can help. Learn more about our approach online, or request a quote today to get started!

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How to Choose the Right 3PL Provider for Your Business

June 11, 2023 John Griffin 3PL, Logistics

Third-party logistics (3PL) providers can be an incredible resource for businesses, handling the complex nature of distribution with sophisticated and efficient systems. Where a small organization might struggle to respond to shipping demands or adapt to market volatility, a skilled 3PL provider can easily accommodate these factors, allowing the business to focus on other things like stimulating growth or reducing costs.

But not all providers are created equal. How do you know which is reliable and best fits your organization’s unique needs? Before you pick a 3PL provider, take some time to dive into the following tasks and understand your needs on a deeper level. These steps on how to choose a 3PL provider should help you find a capable partner for years to come.

1. Assess Your Business Needs

Start by finding your must-haves and collecting the information a good 3PL provider will need before offering its services. Map out the scope and scale of your operations and the level of service you need from this new partner. Will you need them to provide value-added services like kitting, fulfillment or pallet displays? Do you have products with unique demands, like hazardous materials or fragile items, that they can accommodate? Make sure your provider can meet these demands and has experience with them.

Consider what you want your customer experience to look like and how your 3PL provider can help you get there. You may want to personalize the customer experience with unique freebies or packing slips, or maybe you just want to ensure reliable, mistake-free deliveries. 3PL partners function as an extension of your brand, so make sure the company can meet the standards your customers expect.

Another aspect to consider is your organization’s plans for growth. If you intend to scale your business, your 3PL provider should be able to scale with you. Understand your requirements for capacity, speed, throughput and other relevant metrics that will help you grow and maintain quality.

2. Evaluate 3PL Providers

Once you know what you’re looking for, you can start assessing specific providers. Gather up a list of potential partners and do some digging. Look into their position on aspects like:

  • Reputation: Learn about the provider from different sources, including customers, carriers, vendors and even employees. A good reputation signifies a good track record. It can also point toward a provider with strong industry connections. For instance, they may be able to solve problems more easily or negotiate better rates.
  • Experience: A provider that’s been around for a while understands the details of distribution and logistics. They can provide reliable insight, and you can rest easy knowing they’ve been there before. Experience can also point to a provider that knows how to handle the ups and downs of an ever-evolving industry.
  • Locations: You may want a 3PL provider with specific locations to better serve your customers. Consider where the company places its warehouses and whether they sit close to ports and highways.
  • Technology and infrastructure: Today’s supply chain relies on sophisticated technology and systems. Ask your 3PL provider what kind of software they use and how they achieve efficiency and quality in their processes. Look for a partner that integrates with your chosen e-commerce platform and has a good support team in place.
  • Pricing and contracts: Of course, your 3PL provider should fit within your budget. Analyze potential contracts and consider whether the prices they’re offering you are competitive without being suspiciously low.
  • Safety, security and compliance: Warehouse work environments can be a hot spot for safety issues, so dig into your potential partner’s approach to safety, including their track record with regulatory compliance. Look for their information and product security credentials to ensure they can protect your assets. Some certifications to look for include those from the Payment Card Industry (PCI), the Food and Drug Administration (FDA), the Drug Enforcement Administration (DEA) and any industry-specific organizations.

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3. Consider Industry Specialization

A partner with experience in your industry can address unique and specialized requirements. For example, pharmaceuticals may require extensive monitoring, tracking and cold storage, while food and beverage products need exceptional speed to reach customers before going bad. Talk to your potential partner about their prior work in your industry, and ask for specific examples of how they can meet your unique demands. Pay special attention to their handling of regulations and compliance.

4. Learn How They Communicate and Collaborate

Communication and collaboration are crucial in any partnership. As you read reviews and talk to the 3PL provider, look into their approach to communication and what tools they use for it. What is your 3PL partner’s method of responding to issues? Do they keep you in the loop through integrated software and real-time product insights?

Good communication often points toward better service since the company can quickly identify and resolve problems. They may even offer more support by providing insights into your products and costs. A strong 3PL partnership should help reduce the stress associated with logistics while giving you more freedom to grow your business.

5. Review Performance Metrics

Key performance indicators (KPIs) provide valuable insights into a provider’s performance over time and in specific areas. Figure out which KPIs are most important to your needs, and obtain them from your potential partner. Understand how they measure and report on these KPIs, and evaluate their performance history to learn more about their track record.

While every KPI indicates something different, watch for signs of stability and overall quality. Stability shows that the 3PL provider has adapted to changing industry demands. Aspects like accuracy, on-time deliveries and customer satisfaction naturally suggest a higher-quality operation that can support your goals.

6. Finalize the Partnership

Once you’ve found the right 3PL partner, you can finalize the partnership. You must negotiate your contracts and agreements and conduct due diligence for legal compliance and insurance coverage. These administrative tasks are essential, but you’ll also need to focus on establishing a good working relationship with the provider. Get to know your point of contact, and build a communication plan so you understand what to expect moving forward.

Establishing expectations upfront can save a lot of headaches down the road and set you up for a more successful partnership.

Find the Right 3PL Provider to Help You Grow

Regardless of your goals or industry, the right 3PL provider will significantly impact your organization. This partner can be the difference between on-time deliveries and costly shipment delays. They might help you reach more markets, gain more customers or reduce your expenses considerably. Take the time to make this decision properly and understand the characteristics of your operation, the provider and the partnership. By prioritizing your evaluation, you can decide on a partner that aligns best with your business plans.

If you need 3PL services in the eastern United States, Crown LSP Group offers family-owned support from North Carolina. Our convenient locations sit near several East Coast ports, major roadways and large cities, and we have experience in many different industries. We also have the flexibility and customization to accommodate unique requirements while keeping costs low. Request a quote today to learn more about our 3PL services and see how Crown LSP Group can help!

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Understanding 3PL Warehousing Costs

May 23, 2023 John Griffin 3PL, Order Fulfillment, Warehousing

Third-party logistics (3PL) solutions are a value-added service for companies, including manufacturers, retailers and other businesses. Organizations often turn to us at Crown LSP Group to outsource warehousing and transportation services so they can focus on what they do best. Explore what you need to know about 3PL warehouse costs so you can get the most value for your budget.

Order Fulfillment Fees Explained

Understanding 3PL warehousing costs starts with considering the fees you might face when outsourcing the packing, picking, shipping and receiving of goods sent to fulfillment centers. These can include fees for warehousing and account setup in addition to the costs you’re paying for labor, storage space, services and more.

Warehousing fees are usually charged in one of the following ways:

  • Monthly flat fee: A 3PL might estimate your service costs based on your inventory and the services you may need and charge you the same fee every month. Flat fees make it easy to budget. This model is best if your order fulfillment needs change very little month over month.
  • Variable pricing: This pricing model is usually based on the cubic or square feet you use in storage, plus any service fees.
  • Rate card pricing: In this type of pricing model, you pay based on the weight of your inventory and where it is shipped. While this type of cost is associated in some warehousing fees, it is much more common in less-than-truckload shipping.

If you’re unsure about 3PL pricing and need to work with real numbers based on your current needs, Crown LSP Group can help. Our transparent and cost-effective solutions are flexible, so we can often find a great option for you that fits your budget. Contact us to talk about how much you may be able to save.

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Common Types of 3PL Fees

Total 3PL costs can go beyond the price of storing, packing and shipping your products. The following fees are common, though what you pay will depend on your needs:

  • Transportation fees: These fees cover the cost of transportation for your inventory, from origin to destination. The fee is usually based on the weight or cubic feet of the products. If you’re forwarding products from one destination to another, additional fees may apply for unpacking, inspections, sorting and labeling.
  • Warehouse receiving fees: You will be responsible for fees charged by distribution centers or warehouses when they receive shipments from 3PLs.
  • Fulfillment center storage fees: Also known as an inventory storage fee, this is what you pay to store your products in a fulfillment center. The cost is usually based on the pallet space, cubic feet of storage space or bin space.
  • Pick and pack fees: These fees cover the cost of getting items from inventory and packaging them for shipment. Fees usually apply per item, and you can expect to pay extra for heavy or large items. If you have a large inventory, you may be able to seek a lower per-item rate.
  • Fulfillment fees: This is the shipping fee, which is often based on weight and volume. Sending inventory over long distances can also impact your rates.
  • Return fees: Also known as reverse logistics, these fees cover the costs incurred when a customer returns one of your products.
  • Inventory audit costs: You may pay this cost for an audit to make sure your records match your actual inventory. This additional fee is usually optional and can be helpful to ensure no mistakes have been made in shipping your products.
  • Kitting fees: These costs may apply if your shipments include a need for your 3PL to group or ship products together. For example, if you have a subscription box service, your 3PL team may build boxes every month by combining different products in one package. This assembly will cost an extra fee, which will depend on the number of products assembled as well as your order volume.
  • Setup fees: When you first start working with a 3PL provider, there may be a fee to open your account. The cost can vary depending on the services you need, the provider you’re working with and the size of your company. These one-time fees cover the admin and other costs associated with starting a new account.
  • Account management fees: These costs are ongoing and usually charged per month. The cost may vary depending on the 3PL service provider, your business needs and the services you are receiving. Account management fees cover the miscellaneous expenses not covered by other fees. For example, they can cover reporting, shipping labels, document storage and related costs.

Fees can vary widely, which is why you want to choose a 3PL service solution carefully. When you partner with Crown LSP Group, we provide bespoke solutions that meet your needs — so you don’t pay for services you don’t require. We’re also transparent about pricing, so you can budget accurately and understand any fees that apply.

Factors That Impact 3PL Costs

To keep 3PL costs low, it’s important to understand what could affect the price you pay:

  • Your 3PL provider: Every 3PL solution charges fees. Crown LSP Group is committed to saving you money and finding custom solutions that meet your service and budget needs. We’re your partner in offering value and exceptional services.
  • Special requirements: Unique needs, like eco-friendly packaging or special services for very heavy, large or fragile items, can affect your costs. Products that need special temperature control will also cost extra because of the added utility costs and special warehousing requirements. In general, the simpler your needs, the less you can expect to pay.
  • Distance: If your items need to travel far, prices may be higher — especially if your items need to pass through multiple hands or across international borders.
  • Services: The services you need beyond warehousing, such as assembly services, will affect your costs. Should you need fewer services, you can expect to pay less.
  • Volume and weight: Heavy and oversized inventory takes more space and is more difficult to move, so it typically incurs additional costs. The amount of inventory you have will also have a big impact on 3PL costs because volume determines how much storage or warehouse space you need.
  • Shipment volume and size: The number of shipments and orders will impact labor costs — and your fees. The average order size can impact your costs, too.
  • Hazardous materials: Hazardous materials need to be stored and shipped with extra caution and in special environments, which can add to your costs.
  • Special shipping considerations: Specialized transportation equipment incurs additional costs. If your inventory requires temperature-controlled trucks, for example, a fee may apply.
  • Inventory values and insurance needs: The value of your inventory can impact insurance costs and result in additional fees.
  • Stock rotation: If your inventory needs to be rotated, the extra work adds to labor costs and the amount you pay.
  • Cross-dock shipments: Cross-docking saves you time by allowing your inventory to move directly from one truck to another in the transportation process, reducing the amount of time your products spend sitting idle. This process is often an extra service with its own fees.
  • Other special considerations: Labor shortages, weather and other unpredictable events can all have an impact on costs and your shipments.

When considering 3PL costs, don’t forget to factor in what you’re saving by outsourcing. The costs of building warehouse space yourself or trying to maintain raw materials or finished products on your premises can add up.

Storing materials and products on-site can also increase your insurance costs and can harm your bottom line if anything gets damaged or goes missing. If you don’t have enough product to start manufacturing or shipping, the costs of keeping production lines idle can be significant — and unhappy customers who don’t get their items on time can slow your business growth. Keep in mind that you can save on these costs when you outsource 3PL solutions to a trusted provider.

Control Costs and Enjoy Quality 3PL Solutions With Crown LSP Group

Costs for 3PL service can vary widely depending on your service needs. At Crown LSP Group, we understand order fulfillment fees affect your bottom line. We offer custom solutions so we can bring you competitive pricing for the services you need.

Crown LSP Group is your partner in warehousing and transportation services. Contact us today to request a quote.

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Crown LSP Group
PO Box 628 | Rocky Mount NC 27802
252-985-1070 | 800-426-0162

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