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Q&A with SCI’s Healthcare, Beauty, and Wellness Experts

Welcome to our Q&A focused on the dynamic world of third-party logistics (3PL) for the health, beauty, and wellness sector. In an era where consumer expectations are constantly evolving, businesses in this industry are increasingly turning to 3PL providers to streamline their supply chain and enhance overall efficiency. The healthcare industry is unique within the logistics space due to its particular compliance and regulatory constraints which require specialized fulfillment resources, skills, and services.

We sat down with SCI’s VP of Healthcare, Peter Tostevin, and Director of Strategic Healthcare Accounts, Amy Lawrie to learn more about SCI’s unique healthcare, beauty, and wellness fulfillment services, as well as the latest industry insights and trends.  

Can you give us a brief overview of the history of SCI’s healthcare, beauty, and wellness division? When did SCI first begin working with these types of clients and how has the business grown over the years?

Peter Tostevin:

SCI began working with health, beauty, and wellness brands in 2003. The company originally served B2C clients, but quickly expanded to include B2B fulfillment as well. Over the years, we’ve supported many clients with their entry into the Canadian market and helped brands transition from wholesale models to omni-channel fulfillment strategies. As we grew, we incorporated GMP compliant facilities, and introduced in-house kitting and labeling services.

As our health, beauty, and wellness partnerships expanded we also diversified our service portfolio to include comprehensive Quality Assurance and Compliance support. These services especially helped clients when expanding their product lines and with their growth through M&A activities. In addition to our contract logistics services, our clients also benefit from having access to our white glove and transportation management service offerings.

 

What expertise and solutions does SCI provide for the unique needs of a health, beauty, and wellness supply chain?

Peter Tostevin:

SCI has an extensive supply chain network that includes Health Canada licensed and GMP certified facilities. These types of facilities must follow stringent processes to ensure the quality and efficacy of the products handled at these sites. Examples of the special services we have at our facilities includes temperature-controlled areas with humidity monitoring, specialized handling procedures, and Quality Assurance teams.

SCI Temperature Control Humidity Monitoring

SCI provides in-house Quality Assurance and has robust quality management systems and inbound inspections. This includes segregated returns and quarantine areas to guarantee our clients’ operations are fully compliant in Canada. We also have in-house licensed labeling and packaging activities that help streamline operations.

 

What types of healthcare, beauty, and wellness clients does SCI work with? There are a variety of segments within these industries – who is best suited to SCI’s solutions?

Peter Tostevin:

SCI specializes in fulfillment for direct-to-consumer health, beauty, and wellness e-commerce brands, and omni-channel retailers. We work with retailers that sell cosmetics, protein powders, natural health products, vitamin and supplement brands, personal-care products, medical devices and more.

We are also uniquely equipped to manage the delivery and installation of high-value medical products and devices of all sizes. Our highly skilled teams can deliver, install, and assemble items such as MRI machines, PET scan machines, etc.

White Glove Delivery MRI Machine

What kind of growth and changes have you seen in the market over the past few years? What new consumer trends are you seeing from a retail and supply chain perspective?

Peter Tostevin:

There has been a growing demand for personalization and customized products in the healthcare, beauty, and wellness sectors. Consumers are looking for tailored solutions for their specific needs and preferences. We’ve seen e-commerce retailers respond by offering personalized recommendations, customizable products or kits, and subscription services, which enhance the overall customer experience.

Consumers are also increasingly conscious of environmental and social sustainability. This awareness has influenced what they buy, leading to a rise in demand for sustainable and eco-friendly products. We’ve seen e-commerce retailers respond by offering a broader range of sustainable options, promoting ethical sourcing and production practices, and providing transparent information about their products’ environmental impact. As a brand’s 3PL provider we’re making important sustainability investments in our company by focusing on energy efficiency and process improvements to help reduce emissions.

 

SCI prides itself on providing value to our clients and delivering solutions. What value-added-services does SCI offer its health, wellness, and beauty clients?

Amy Lawrie:

SCI provides in-house kitting & packaging and holds NHP, and Drug Packaging & Labelling Licenses. We are also licensed for repacking, relabeling, and detailed inspections. Our contract packing services include sorting, stuffing, tagging, and labelling to suit our clients’ high-volume packing needs. We’ve seen the rise in customization and subscription boxes in the health and wellness space, and have the in-house resources to serve these clients and their needs. For brands offering their customers subscription boxes and kits we have the flexibility to meet their brand vision and create the perfect un-boxing moment. We can easily add holiday messaging, promotional inserts, tissue paper, etc.

Subscription Box Red and Blue

From assembling curated subscription boxes, to labeling natural health products or medical devices, SCI provides the in-house kitting and packaging services our clients need to exceed their customers’ expectations and sell compliant products in Canada.

 

How have SCI’s services and solutions changed to keep up with new technology and changing consumer demands and expectations?

Amy Lawrie:

To keep up with changing trends and demands, SCI has invested in a technology-forward approach to logistics, fulfillment, and transportation. Our tools, integrations, and automations help mitigate risks, maximize production capacity, and optimize operations to save on our client’s bottom line.

One of the technologies we’ve invested in is our improved warehouse management system (WMS) to support our clients’ growth. Our WMS manages multiple DTC channels, and enables B2B wholesale fulfillment, while also providing forecasting, order planning, and seamless returns.  Our WMS also meets Health Canada requirements including recall reporting and retention sampling. Tracking lots and expiration dates helps SCI deliver our clients’ high-quality goods to their consumers.

Warehouse Management System

Our clients can also see dynamic, up-to-date reports of their business metrics with SCI’s business intelligence tool. The reporting from this tool includes on-hand inventory, order status, percentage of fulfilled orders, and shipment tracking.

We’re always looking for ways to continuously improve our operations. SCI uses automation technology to improve efficiency and increase productivity where possible. Our investment in technology helps reduce carbon use, support our employees, and fulfill orders faster.

 

We’re seeing growth in cross-border ecommerce especially between USA and Canada. How can SCI support direct-to-consumer health and wellness brands with their cross-border strategy?

Amy Lawrie:

We’ve seen a lot of success partnering with U.S. brands to help them localize their inventory in Canada to better serve the Canadian market. With our end-to-end supply chain solutions, including localized warehousing, fulfillment, and transportation, we’re able to support the accelerated growth that happens when entering a new market. By localizing inventory in Canada brands can reduce delivery times and improve shipping costs for Canadian consumers. Our in-house kitting and labeling services have also been invaluable for US clients. We can re-label or re-package US products to make them sellable in Canada. This includes rework projects where ink-ed items are reprinted directly onto and re-packaged into new boxes. This is commonly done to meet bilingual packaging language requirements in Canada.

 

What obstacles can US-based companies face when expanding into Canada?

Amy Lawrie:

One of the obstacles that most U.S. brands face when expanding into Canada is meeting a new set of rules and regulations. The Canadian market has its own set of regulatory and compliance standards that differ from those in the United States. Brands looking to expand into Canada need to navigate through various regulatory frameworks, including health product regulations, packaging and labeling requirements, ingredient restrictions, and licensing processes. We understand that navigating the Canadian market and adhering to these regulations can be time-consuming and overwhelming. That’s why we have in-house Quality Assurance experts, and relationships with Regulatory Compliance companies to help companies meet Health Canada requirements.

Quality Assurance

Establishing an efficient distribution and logistics network in Canada can also be challenging for US brands. Canada is a big country with varying population density. We have years of experience and a vast warehousing and distribution network across Canada. We’re here to help with careful planning for warehousing, transportation, and inventory management.

 

Quality assurance is a key part of SCI’s Health and Wellness supply chain solutions. Can you elaborate on what is involved in this part of the process and why it’s so important in the health and wellness space?

Amy Lawrie:

SCI has developed a structured Quality Management System that encompasses processes, procedures, and responsibilities for continuously delivering high-quality services that meet regulatory and customer requirements. Our QA services ensure established procedures and protocols are being adhered to and we conduct regular product inspections and releases.

Our team also controls storage, handling, and transportation of products to minimize any risk to their quality. Other parts of the QA process include providing training to staff to properly carry out procedures, managing supplier evaluations, conducting healthcare site audits, and maintaining records.

Maintaining records is important for product traceability. Quality assurance includes implementing systems for product traceability and serialization, enabling the tracking of products throughout the supply chain. This helps in identifying and resolving issues promptly, such as recalls or quality problems. It is our QA team’s job to also investigate and document any deviations to determine the root cause and impact, ensuring proper corrective and preventative action is taken.

Quality assurance also involves identifying potential risks in the supply chain and implementing measures to mitigate them. This proactive approach helps prevent adverse events and ensures that the supply chain operates smoothly. By performing in-house Quality Assurance, it helps cut out additional handling and transportation costs, and reduces the amount of touch-points which ultimately reduces the risk of product loss or errors.

 

If you’d like to learn more about SCI’s healthcare, beauty, and wellness services click here, or contact one of our supply chain experts here.

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What is 3PL (Third Party Logistics) Service?

As companies grow they encounter many challenges associated with an increased customer base, new locations, updated manufacturing methods, and other factors. For some companies, meeting these challenges with investment in capital and overhead is ultimately not the most financially viable option. Many times, it’s a better choice for these companies to look outside their walls to 3rd party logistics services providers to deliver the enhanced functions that they need to continue growing. Logistics is certainly one of those functions that can benefit greatly from choosing the right third-party partner. This is where 3PL comes in to play.

What is 3PL?

3PL stands for ‘third-party logistics’. This refers to a variety of logistics services and processes that are provided to a business by an external company, including inventory management, warehousing, and fulfillment. A business may choose to work with a 3rd party logistics services provider for a variety of reasons, such as wanting to reduce costs, improve efficiencies and expand capabilities. 3PL services are usually flexible and scalable based on the needs of the business, meaning that they can be utilized on an as-needed basis, or as a long-term solution depending on the goals and objectives of the business.

The 3PL Order Fulfillment Process

The order fulfillment process is a crucial aspect of logistics, and it is where 3PLs play a significant role. When a customer places an order on your ecommerce website, the 3PL fulfillment process begins. Let’s explore the various steps involved in the order fulfillment process:

1) Receiving

The first step in the 3PL fulfillment process is the receiving of inventory. When your products arrive at the 3PL warehouse, they are checked in and stored. Each 3PL has its own receiving process, which may include filling out a Warehouse Receiving Order (WRO) to ensure organized and timely receiving.

2) Warehousing

After receiving the inventory, the 3PL stores your products in their fulfillment centers. Each SKU is assigned a dedicated storage location, such as a shelf, bin, or pallet. It is essential to choose a 3PL with sufficient storage capacity to accommodate your current inventory and allow for future growth.

3) Picking

When a customer places an order, the picking process begins. The 3PL’s warehouse management system (WMS) generates a picking list for the warehouse staff. The pickers locate the ordered items in the warehouse and prepare them for packing.

4) Packing

Once all the items in an order have been picked, they are packed securely for shipping. The 3PL uses standard packing materials such as boxes, bubble mailers, poly bags, and packing tape. Some 3PLs offer custom packaging options to help enhance the unboxing experience and reinforce your brand.

5) Shipping

After packing, the order is ready for shipping. The 3PL purchases and prints shipping labels on your behalf. They work with various shipping carriers to ensure timely and cost-effective delivery. Once the order is shipped, the 3PL may provide tracking details to both you and the customer.

6) Returns

Many 3PLs also offer returns management services. If a customer needs to return a product, the 3PL handles the process, including restocking or disposing of the returned items. Some 3PLs even provide return shipping labels to simplify the returns process for customers.

Why Choose a 3rd Party Logistics Service Provider?

Whether you are B2B, brick-and-mortar, omni-channel retail, or direct to consumer e-commerce business, there are many reasons why companies choose to go the 3PL service route. Often, as a company grows, the need for warehouse space increases beyond that business’ ability to manage it. 3PL warehousing can be a good option for companies facing storage capacity issues. Other companies may be challenged with increasing transportation costs and investment in equipment and vehicles. The large fleets of modern vehicles and equipment that are available through 3rd party logistics services providers are often a much more cost-effective solution. Then there are US businesses looking to expand into the Canadian market – a good 3PL will have the depth of experience to help solve many logistics challenges involved with these scenarios.

Other reasons why companies may choose to partner with a 3PL include challenges with customer service, order fulfilment, returns, order tracking, technical services, inventory management, and more. As you can expect, the more of these struggles that a company faces as they grow, the more value a 3PL partner can provide.

6 Benefits of 3rd Party Logistics Services

3PL logistics providers can deliver a great deal of value to companies such as direct-to-consumer (DTC) e-commerce retailers that are dealing with the challenges associated with rapid growth or changing market conditions. Here are some of the main benefits that can be realized by utilizing 3PL logistics.

1) Cost Savings

3PL providers have vast networks of resources across the country and the globe. This includes warehousing space, trucking, and transportation fleets, human resources, and technology that your company can take advantage of without the necessary massive investment in overhead and capital setting this all up on your own would require. This level of flexibility adds up to significant cost savings which have a big impact on the bottom line.

2) Flexibility

The level of service you obtain from a 3PL provider is entirely up to you and can be adjusted to accommodate different levels of business due to seasonal or cyclical demands. For example, if your company sees a big surge in orders every year for the holidays, 3PL companies can scale up services and labor accordingly to meet high demand needs, and then go back to normal levels once the surge subsides.

3) Efficiency

In addition to the savings in capital costs, many companies see significant savings in time through 3PL services. This can take the form of lower cost per unit shipped, faster transportation and reduced delivery times, and the ability for the whole organization to devote more time to its core specialties, including product development, customer service, sales & lead generation, or market growth.

Improved efficiency means a greater return on your investment.

4) Customer Experience

In addition to business-side benefits, there are many customer-facing benefits to 3PL services. Companies can expect to achieve faster and more reliable delivery times, improved tracking and order status communication, reduced chance of damage or incorrect product packing, and more. All these benefits make a big difference in overall customer satisfaction and retention while improving the average lifetime value of customers and your brand image.

5) International Reach

When an American company expands beyond its country’s borders into Canada, a new set of challenges arise in the form of regulatory compliance, customs clearance, and communications. 3PL providers are able to assist companies with a smooth and efficient entry into new markets through the use of their established & extensive Canadian networks.

For anyone considering a move into Canadian markets, the guidance available from experienced 3PL logistics providers is extremely valuable.

Canadian companies looking to expand into the U.S. can also work with a 3PL provider on a southbound fulfillment strategy that enables them to leverage the cost savings from the Section 321 exemption. Section 321 is an exemption in the Canada-U.S.-Mexico Agreement that allows small shipments valued under $800 USD to enter the U.S. duty-free. For DTC e-commerce retailers, this offers an opportunity to reduce their cost per unit through waived or refunded import duties on items that enter Canada bound for U.S. recipients.

6)  Strategy and Planning

3PLs can take a strategic approach to your business and look at ways to reduce costs, risks, and complexity within your supply chain. In today’s borderless e-commerce market, a cross-border strategy is crucial. E-commerce retailers have seen great success in creating a more efficient supply chain through a combination of localization and Section 321 fulfillment, supported by a 3PL provider’s network.

Using localization and Section 321 as a strategy not only saves money on duties and tariffs but also creates a more efficient North American distribution model. By consolidating distribution in strategic centers in Canada, e-commerce retailers can optimize operations by servicing both the U.S. and Canadian markets from a single location (rather than having both U.S. and Canadian distribution centers servicing each market).

The right 3PL will have in-depth knowledge of the U.S. and Canadian supply chain industry, strategically located warehouses, and relationships with top U.S. carriers to help you create a competitive advantage. In addition, they will provide comprehensive support with strategic planning to maximize your fulfillment operations.

Read our blog – When Your Company Should Outsource 3PL Logistics: Key Signs and Benefits

Services Available from 3rd Party Logistics Service Providers

While virtually any logistics function can be done by major 3PL providers, these are the most common logistics processes and services available from leading Canadian third-party logistics companies.

How SCI Can Help Your Business

SCI is a leading 3PL provider that offers a comprehensive range of fulfillment services. With a network of strategically located fulfillment centers, advanced technology, and dedicated support, SCI can help streamline your logistics operations and enhance the customer experience.

Here are some of the key features and benefits of working with SCI:

1)  Fast and Affordable Shipping

SCI ‘s distributed inventory model allows for faster and more cost-effective shipping. With fulfillment centers strategically located across the United States and globally, SCI can store your inventory closer to your customers, enabling fast shipping options at affordable rates.

2) Inventory Management

SCI provides powerful inventory management tools that allow you to sync inventory across multiple sales channels, view real-time stock levels, and automate reordering. With full visibility into your inventory, you can prevent stockouts and ensure efficient order fulfillment.

3) Returns Management

A returned product isn’t the end of its life. Find cost savings and operational efficiencies with SCI’s seamless returns management services, including return processing, inspection, and restocking.

4) Kitting and Packaging

SCI enables you to customize your orders with kitting and branding options. From custom packaging to seasonal promotions, you can create a memorable unboxing experience that reinforces your brand identity.

5) Dynamic Business Intelligence

Our award-winning integrated Business Intelligence (BI) tools give you end-to-end supply chain visibility so you can stay connected to your day-to-day to make nimble and informed decisions.
SCI’s intuitive, easy-to-use BI portal provides on-demand reporting and insights on your key business metrics, including:
• On-hand inventory
• Open orders
• Track and trace
• Performance dashboards highlighting trends and key insights on your business.

6) Strategy and Planning

SCI takes a strategic approach to your business and looks at ways to reduce costs, risks, and complexity within your supply chain. During implementation, over half our time is spent understanding your brand, your business, and your pain points. Equipped with this information, we combine the best suite of solutions to optimize your operations. Our goal is to design a fulfillment solution that will enrich your business and exceed your customers’ expectations. By leveraging insights from our award-winning Business Intelligence tool we can continuously optimize operations and anticipate issues before they happen.

Conclusion

In today’s competitive e-commerce landscape, efficient logistics operations are essential for business success. Partnering with a third-party logistics (3PL) provider can help you streamline your fulfillment processes, reduce costs, and improve customer satisfaction. Whether you need assistance with inventory management, order fulfillment, international shipping, or returns management, a 3PL can offer the expertise and resources to support your business growth.

As your company continues growing, it’s inevitable that you will encounter additional challenges related to rising costs, increased logistics complexity, and changing customer needs. 3PL logistics can be an excellent way to address these challenges before they become a hindrance to the continued success of your business. Identifying the areas where 3PL service can bring the most benefits to your company may be difficult, but with the right 3PL partner, you’ll get the guidance and direction you need to implement an effective plan.

SCI prides itself on adding value to our client’s business by removing friction points and seamlessly delivering on their business strategy.  Through continuous improvement processes, business intelligence tools, data-driven insights, and progressive technology, SCI’s integrated team of experts are committed to reducing costs, risks, and complexity within the supply chain. By optimizing supply chain operations, our clients gain the competitive advantage they need to scale their business.

Contact us today and we will be glad to answer any questions you have about how 3PL logistics can bring your business forward and achieve your goals.

FAQs

1) What does 3PL stand for?

3PL stands for third-party logistics. It encompasses the outsourcing of logistics processes, including inventory management, warehousing, transportation, and order fulfillment, to a third-party business. This model allows companies to focus on their key competencies and improve their operational efficiency

2) Why are third-party logistics important?

Third-party logistics (3PL) are important because they offer outsourced logistics services. This allows companies to focus on their core competencies, while the 3PL provider takes care of procurement, fulfillment activities, inventory management, warehousing, and product delivery. For eCommerce businesses, in particular, 3PL providers can reduce fulfillment errors and free up time for other priorities, enhancing efficiency and cost savings

3) What is 3PL and 4PL in logistics?

3PL and 4PL in logistics refer to third-party logistics and fourth-party logistics respectively. While 3PL providers offer outsourced logistics services, 4PL refers to a situation where a 3PL provider outsources its own contracted services

4) What industries benefit most from 3PL services?

3PL services are beneficial to a wide range of industries, including e-commerce, retail, technology, and healthcare. Any business that deals with inventory management, distribution, and transportation can benefit from the expertise and resources offered by 3PL providers to streamline their supply chain operations.

5) Can a 3PL service help with international shipping and customs clearance?

Yes, many 3PL providers offer international logistics services, including customs clearance and compliance. They have the knowledge and relationships with global carriers and customs authorities to ensure smooth cross-border shipments. By leveraging their expertise, businesses can navigate the complexities of international shipping more efficiently.

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Providing Exceptional White Glove Services to HPE Relocation – Case Study

Hewlett Packard Enterprise (HPE) is an American multinational information technology company that provides IT equipment and services to enterprise, commercial, and public sector customers. Their solutions include hardware such as servers, storage, networking, as well as various IT services such as support, managed services, consulting, and cloud services.

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Healthcare Logistics in Canada: What You Need to Know About GMP Compliance

Healthcare logistics in Canada plays a crucial role in ensuring the safe and efficient distribution of pharmaceutical products, medical devices, and other healthcare-related items.

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What you Need to Know About Healthcare, Beauty, and Wellness High-Volume Ecommerce Fulfillment

The health and wellness industry, encompassing sectors like personal care, beauty, nutrition, and fitness, is currently experiencing a boom. Revenue in the Beauty & Personal Care markets in the U.S. will amount to US$93billion in 2023.

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The Role of Automation Technology in 3PL Ecommerce Fulfillment

In the increasingly digitized world of e-commerce, businesses face a growing need to be faster and more efficient. This is especially true in the realm of e-commerce fulfillment, where customer satisfaction hinges on the speed and accuracy of order processing, inventory management, and delivery.

To help with these tasks, many companies rely on outside experts called third-party logistics providers (3PL) who can offer a comprehensive suite of services to manage their supply chain effectively. However, as customer expectations continue to evolve, 3PL providers need to keep one step ahead with the latest technology to improve their services.

This article outlines how technology, especially automation, is making a big difference in how 3PL providers handle online orders and why it matters.

Understanding Technology-Enabled 3PLs

Before delving into the specifics of how automation technology is revolutionizing third party logistics, it’s important to understand what a ‘technology-enabled 3PL’ entails. Essentially, these are logistics providers that leverage cutting-edge technology solutions to streamline shipping and order fulfillment. They combine traditional logistics services, such as inventory warehousing, picking, packing, and shipping, with goods-to-person automation, and sophisticated software that integrates data from various sources. This combination of technology and logistics provides an end-to-end e-commerce fulfillment solution that enhances visibility, efficiency, and accuracy.

Investing in Automation Technology

 The cost of initially implementing automation technology can be substantial. It includes expenses for purchasing equipment, software, and infrastructure changes. But the upfront investment should be compared to the expected long-term benefits, which are outlined in the section below.

For 3PLs, it’s essential to conduct a comprehensive cost-benefit analysis to determine the overall cost efficiency of implementing automation technology. This analysis should consider the specific circumstances and goals of the 3PL and its clients, as well as industry trends and competitive pressures. Automation can be a valuable investment for many 3PL providers with benefits that can be shared with clients through smart-task completion. But automation technology should be strategically planned and executed to maximize cost efficiency and long-term success.

The Benefits of Using a Technology-Enabled 3PL

 E-commerce fulfillment automation is the integration of technology with business resources to create a seamless process from start to finish. By automating established best practices, it accelerates processes, enhances efficiency, reduces human errors, and saves on costs and time.

The decision to partner with a technology-enabled 3PL offers a host of advantages for e-commerce businesses. Here are the top nine benefits.

 1. Efficiency through Automation

Automation eliminates the need for manual order entry and dispatching, thereby saving time and reducing the chance of errors. With a 3PL’s software integrated directly with online storefronts, the warehouse is notified the moment a new order is placed. Each step in the order fulfillment process is then documented and updated in real-time, providing sellers with up-to-date information on the status of every order.

Automation can also come in the form of goods-to-person automation such as collaborative robots, automated sortation, or box-on-demand. These types of automation solutions help support employees, reduce carbon footprint, and create efficiencies through smart task completion.

VLM Automation Technology

 2. Faster Order Processing

Automation allows for faster order processing through secure and effective data exchange. Administrative tasks can be automated, freeing up time and resources for other strategic growth activities.

 3. Optimized Warehousing

Automation algorithms can identify the optimal fulfillment center for prompt, efficient delivery of orders. With access to a nationwide distribution network and millions of square feet of fulfillment space, businesses can find the ideal warehouse location for any circumstance. Additionally, goods-to-person automation solutions can assist workers, improve accuracy, and speed up and streamline item retrieval.

4. Faster Delivery Times

Customers expect fast delivery as part of their purchasing experience. Fulfillment automation creates workflow efficiencies to maintain speedy delivery times, ensuring products are delivered as designated by the brand. 3PLs, like SCI, who have integrated contract logistics and transportation solutions can streamline these services even more and simplify your supply chain.

5. Cost-Efficiency

Automation can reduce the need for manual labour, which is helpful to offset labour shortages. This reduction in labour costs can lead to long term savings. Automation also results in increased throughput with improved speed and efficiency of order processing, warehousing, and transportation. This can lead to more orders processed and increased capacity to serve more customers. Automation can also make it easier to scale operations up or down according to demand, helping to optimize resource usage. Automation technology can even help track and analyze operational costs, enabling 3PLs to identify areas for cost reduction and efficiency improvement.

6. Data-Driven Decision Making

Automation technology allows 3PLs to collect, integrate, and centralize data from various sources, including warehouse management systems (WMS), transportation management systems (TMS), sensors, and IoT devices. This integration creates a single source of truth for operational data. Automation systems provide real-time data, offering immediate insights into inventory levels, order statuses, and transportation metrics. This real-time access enables quicker decision-making.

Automation technology can also leverage historical data and machine learning algorithms to predict trends, demand fluctuations, and potential issues. This aids in proactive decision-making. Automation helps optimize inventory levels by monitoring stock in real-time and suggesting reorder points. Data-driven decisions on inventory management can reduce holding costs and stockouts.

Advanced analytics provided by fulfillment software can even help businesses make more informed decisions regarding their shipping and logistics strategies. Custom metrics, such as revenue of orders shipped by day, sales by channel, peak fulfillment times, and sales and quantity of orders based on delivery zones, can offer valuable insights, guiding more effective supply chain decisions.

Data Driven Automation Technology Insights

 7. Smoother Returns Management

 Automation streamlines the returns process by automating the initiation, authorization, and tracking of returns. This speeds up the handling of returned items, reducing customer wait times and operational delays. Automation also aids in optimizing the logistics and transportation aspects of returns, reducing transportation costs, and improving the speed of return item processing. Automation technology can set up tracking and alerts for customers to know when their package is arriving and how they can make a return. Automated systems can also print return labels, sort returned items, and direct them to the appropriate processing areas, reducing manual labor and minimizing errors. Finally, automation ensures that returned items are promptly reflected in inventory management systems. This helps prevent issues like overstocking or overselling and allows for quicker restocking or resale of returned products.

8. Reduction in Errors

By automating the order fulfillment process, technology-enabled 3PLs can significantly reduce the likelihood of human error. Integrated systems offer greater transparency, allowing sellers to monitor the accuracy of the 3PL’s operations at every stage. Automation systems can also alert 3PLs to potential risks and issues, such as supply chain disruptions or compliance violations, allowing for timely responses.

In e-commerce and supply chain management, automation ensures that orders are processed accurately, reducing the risk of shipping the wrong items or incorrect quantities. Automated systems can also keep track of inventory levels in real-time, reducing the chances of overstocking or overselling products.

9. Enhanced Customer Service

 A smooth order fulfillment process is key to customer satisfaction. Fulfillment software provides sellers with a comprehensive view of the entire process, enabling them to improve service delivery. By offering up-to-date information, technology-enabled 3PLs help businesses meet the fast and accurate customer service standards expected in today’s next-day landscape. Automation technology can help create different categories to apply specific values on customer orders, lifetime cycle, and acquisitions. This data-driven approach helps improve business strategy and optimize the entire supply chain.

Why is Automation Technology Important for E-commerce Sellers?

While automation offers numerous benefits, it’s essential for businesses to assess when it’s the right time to implement an automated fulfillment solution. Here are some factors to consider:

Task Efficiency

If your business is spending excessive time on manual, repetitive tasks such as triggering shipping notifications, identifying best-selling items, managing refunds, and pinpointing best sales channels, automation can significantly streamline these processes.

Cost Savings

Compare the costs of an ecommerce fulfillment automation software solution with the cost for roles necessary to manually perform the work. By eliminating manual tasks, automation can result in significant cost savings, allowing resources to be redirected towards growth initiatives.

Improved Customer Service

Automation can help businesses gain a deeper understanding of their customers’ purchasing behavior. This intelligence can guide strategies for inventory forecasting, communication, and other growth initiatives, all geared towards improving the customer experience.

Competitiveness

Without process efficiency, businesses risk being left behind in the fast-paced world of e-commerce. By leveraging data-driven insights, 3PLs can differentiate themselves from competitors by offering more efficient, cost-effective, and responsive services.

SCI’s Intelligent Automation Solutions

SCI’s tagline ‘we’ll make you even better’ embodies our continuous improvement focus. The combination of our progressive technologies including tools, integrations and automation enable you to mitigate risks, maximize production capacity, increase productivity, and optimize operations to save on your bottom line.

From seamless integrations with our API catalog, operational efficiencies with our automations, through to our award-winning Business Intelligence Tool for end-to-end visibility; we give you the competitive advantage to grow and keep steps ahead of consumer expectations. We are also proud to provide a ready-to-deploy suite of integrated industry-leading solutions such as collaborative robots, box-on-demand, goods-to-person, and automated sortation.

SCI is committed to continue investing in automation solutions to help reduce carbon footprint, support our employees, and share the benefits of smart task completion.

Conclusion

In today’s competitive e-commerce landscape, businesses need to leverage every tool at their disposal to stay ahead. Technology-enabled 3PL providers, with their advanced automation capabilities, offer a powerful solution for businesses seeking to streamline their e-commerce fulfillment operations. By embracing automation, businesses can enjoy enhanced efficiency, cost savings, reduced errors, and improved customer service, all of which contribute to a more robust and competitive business model.

Contact SCI’s team today to discover how our technology forward approach to logistics, fulfillment, and transportation can revolutionize your supply chain and change the pace of how you do business.

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