Big or small businesses that ship items to customers must have an efficient pick-and-pack system. However, some owners may not know what picking and packing is or its importance.
As the initial step in order fulfilment, a problematic pick-and-pack process can trigger several issues. These may include product returns, waste of resources, unhappy customers, and lost revenue.
Let’s understand this crucial supply chain process and learn how 3PL companies with reliable pick-and-pack solutions can benefit your business.
What is the Picking and Packing Process?
Picking and packing is selecting an ordered product from inventory and placing it in a box for shipping. In the 3PL setup, this process involves four steps:
- Receiving. When a customer places an order, the 3PL’s warehouse management system (WMS) produces a packing slip. A warehouse worker takes the order slip to proceed to the next step.
- Picking. The assigned warehouse staff uses the order slip to pick the right type and number of items. This process can vary in different warehouses based on inventory size and quantity.
- Packing. Warehouse staff transfers the picked items to the packing station. Here, workers will check items for accuracy, then box, label, and seal them using techniques that keep shipping costs as low as possible.
- Shipping. Finally, the staff brings the packed items to staging areas near specific dock doors for carrier trucks to pick up and deliver.
What are the Benefits of an Efficient Picking and Packing System?
An accurate and efficient pick-and-pack system is crucial because of the following reasons:
- High customer satisfaction. When you pick and pack items correctly, orders get to customers on time. Timely delivery keeps customers happy and also encourages repeat orders and service recommendations.
- Real-time tracking. A reliable pick-and-pack system can quickly provide customers with logistics information, helping communicate potential issues or delays.
- Controlled inventory movement. An orderly pick-and-pack process simplifies inventory management. Every item is easy to find and track at every stage.
- Cost-efficiency. The picking and packing process is time-consuming because it relies on human input. Keeping it organised helps minimise costly mistakes.
- Better productivity. Streamlining a complex process in the workplace ensures employees perform their duties or address issues without wasted effort or time. It also helps reduce labour costs as staff fulfils more orders in less time.
Why Outsource the Pick and Pack Process to a 3PL Provider?
Many business owners, particularly those without a dedicated logistics team, warehouse space, or physical location, partner with 3PLs for their pick-and-pack needs.
It’s because 3PL companies have access to the following resources:
- Technology. A 3PL provider has advanced programs to track inventory and delivery, ensuring every item reaches the customers accurately and safely. Technology reduces the risk of costly return logistics while increasing visibility and control.
- Customisable services. A 3PL provider can quickly adjust its pick and packing operations based on customer demand, allowing you to make the most of peak shipping seasons.
- Better shipping costs. A 3PL provider can consolidate ordered items with other shipments, resulting in bulk pricing. You can then pass the savings from better shipping and storage costs to your customers.
- Warehouse space and staff. A 3PL provider has the infrastructure to pick and pack small to large sales volumes. This resource allows you to skip significant upfront investments and allocate finances to other business needs.
These resources from a 3PL partner give your business a competitive edge. They let you scale up your operations without worrying about supply chain bottlenecks. With a 3PL provider, you can offer next-day or same-day deliveries to your customers, strengthening your relations.
How Do You Find the Best 3PL for Picking and Packing?
Research is the first step in finding your best 3PL partner. Check the companies’ expertise, service offerings, storage locations, and prices. Then, narrow down your choices and do the following:
- Check their warehouse management software and ensure its ability to integrate with your e-commerce platform.
- Verify that their operations comply with industry standards, particularly inventory management and data security.
- Evaluate their warehouse network and location to gauge proximity to your customer base.
- Assess their scalability to accommodate order volume fluctuations, sudden surges, or peak season.
- Know their picking and packing accuracy and their quality control measures.
- Ensure their communication channels provide responsive customer support.
It also helps to check industry publications for a list of reliable 3PL companies. Customer reviews and case studies are also helpful in evaluating their services and performance. If you know other business owners within your industry, seek their recommendations, too.
Overcome Order Fulfilment Issues with Quality Pick-and-Pack System
Picking and packing are intricate processes. They require time and effort, and without a streamlined system, problems can arise.
A 3PL partner can help you overcome issues related to picking and packing. With their technology, labour, and skills, they can easily handle your logistics needs while you stay focused on growing your business.
Not every 3PL is the same, though. So, make sure to research when choosing your 3PL provider. Find one that matches your business requirements and budget.
Contact Effective Logistics on 03 8376 3300 and get access to satisfactory pick-and-pack services!
