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3PL WMS<\/a> services save companies time and money while enabling them to maintain a consistent brand image. As business owners look for ways to outsource peripheral activities in order to focus on their core competencies, white label solutions become more and more attractive.<\/p>\n <\/p>\n The thing is, \u201c3PL<\/a>\u201d (short for third-party logistics) can mean multiple things. Working with a 3PL company could mean anything from implementing a cloud-based transportation management system (TMS) to completely outsourcing your shipping and logistics. As a result, when talking about 3PL white labeling, it\u2019s important to understand what exactly is being white labeled.<\/p>\n <\/p>\n In our 3PL guide, we\u2019ll help you understand:<\/p>\n <\/p>\n BONUS:<\/strong> Before you read further, download our Warehouse Management Software Whitepaper to see how Logiwa allows you to automate your warehouse with the most flexible and dynamic technology on the market<\/a><\/p>\n Let\u2019s start by clarifying the three chief categories of 3PL services<\/a>:<\/p>\n The extent of your white labeling – and whether providers can even offer white labeling- depends on which of these 3PL WMS services you\u2019re seeking from your 3PL provider.<\/p>\n A TMS is software that helps optimize the receiving and shipping process. It helps manufacturing plants, warehouses, and distribution centers gain visibility over the entire inbound and outbound logistics process. From an operational point of view, it also helps shippers keep costs low by picking the best route – one that balances low costs with timely delivery.<\/p>\n A TMS can make a real difference, but, surprisingly, many companies don\u2019t implement one into their operations. According to Gartner, 85% of shippers don\u2019t use a transportation management system. The same report shows those that do implement a TMS tend to be large companies. This isn\u2019t surprising though. For shippers with a global logistics operation, a warehouse management system is essential, if only for maintaining visibility over the entire endeavour.<\/p>\n Even so, the software can also make a difference for small- to mid-sized companies. According to one report, companies that regularly monitor their shipping expenses and shipping partners using a transportation management system can cut their transportation expenses by up to 30 percent.<\/p>\n In the past, implementing a warehouse management software<\/a>\u00a0may have been cost-prohibitive. Today, the widespread use of cloud technology has made TMS software much more accessible. In fact, since so few small- to medium-sized businesses use transportation management software, there\u2019s a huge opportunity for early adopters to get a leg up on their competition.<\/p>\n Some companies choose to implement a white label system. With a white-labeled solution, the system displays the company\u2019s brand. So, internal employees and external partners associate the system with the company.<\/p>\n As a result, companies don\u2019t have to build their own transportation system from scratch and can leverage their brand recognition, reputation, and company messaging. If their speciality is warehousing<\/a> or inventory management or manufacturing, they can focus on those core competencies while benefiting from the value of a transportation management system.<\/p>\n Of course, it\u2019s not just price that restricts companies from hopping on the TMS train\u2014it\u2019s expertise as well. Transportation management systems can be difficult to learn and training employees takes time. Plus, they may need to learn additional techniques or best practices to get the most value out of the TMS.<\/p>\n To this end, 3PL WMS companies offer managed transportation services (MTS). With an MTS, your company has access to both a transportation management system and the people with the knowledge and experience to leverage its features and insights.<\/p>\n That said, managed transportation services aren\u2019t a fully outsourced solution. Your organization still retains ultimate responsibility over your shipping KPIs. The difference is that your business has experts who monitor your shipping activity, provide reports, and offer recommendations on how to make improvements.<\/p>\n In this case, 3PL white labeling would mean your company\u2019s branding is on the transportation management system, since the outsourced experts providing assistance would be interacting with your internal team.<\/p>\n As the name implies, fully outsourced transportation management means completely handing over the shipping and logistics side of your operation to a 3PL WMS<\/a> company. This third-party logistics company acts as your organization\u2019s \u201ctransportation division,\u201d so to speak. They are responsible for the planning and execution of your inbound and outbound logistics<\/a>.<\/p>\n Taking ownership over the logistics process means being held accountable for certain KPIs.<\/p>\n For instance, if your company wants to see specific improvements, like a 10% reduction on annual transportation costs or a 15% percent improvement in on-time delivery rates, then these expectations would be worked out in the contract. Speaking of agreements, there should certainly be a contract. An arrangement like this is typically long-term in order to make it worthwhile for the 3PL and give them time to demonstrate value.<\/p>\n While 3PL white labeling can be helpful to manufacturers and warehouses, it also presents enormous value to retailers. With a global marketplace, it\u2019s not enough for retailers to just have a physical presence. You need an ecommerce channel, and it had better be competitive.<\/p>\n The \u201cAmazon effect\u201d has had a transformative impact on the ecommerce world\u2014it is the bar that all online retailers<\/a> must meet or surpass. Thanks to Amazon<\/a>, customers expect:<\/p>\n Amazon has the technology, logistics network, and cash to compete on delivery. Other retailers may not have the same resources at their disposal, but letting delivery times slide isn\u2019t an option. Instant gratification is part of the shopping experience. If online retailers can\u2019t come as close to \u201cimmediate\u201d as possible – like Amazon does – the incentive to shop online diminishes.<\/p>\n That\u2019s where a third-party logistics company comes in. It provides the network and expertise needed to help retailers compete with Amazon. At the end of the day, Amazon\u2019s biggest competitive advantage is its distribution network and technology.<\/p>\n On the other hand, a private online brand\u2019s competitive advantage is its products. If a small- to mid-sized retailer can focus on its products while also getting those products to customers quickly and accurately, it can thrive in the current ecommerce environment.<\/p>\n With 3PL software<\/a>, an outsourced logistics provider can become an extension of the company\u2019s brand. This is important since one of the challenges of logistics outsourcing is the separation between the brand and the delivery experience. White labeling also increases brand visibility and customer loyalty.<\/p>\n With Amazon, customer service and satisfaction is built into the company\u2019s ethos. With a logistics company, the focus is meeting its contractual obligations. As a result, they may not put the same effort into, say, the unboxing experience or worry about providing the detailed ETA information customers are used to receiving from Amazon.<\/p>\n Through white labeling, a logistics company may use the company\u2019s own packaging or respond to customer inquiries as an extension of the brand itself. This could help create a more seamless experience from the customer\u2019s view.<\/p>\n That said, white labeling often applies to products themselves (e.g., a TMS software solution) rather than a service (e.g., a fully outsourced transportation management solution). Therefore, ensuring an appropriate \u201cwhite label service\u201d will require conversations, negotiations, and contractual refinements with your transportation partner.<\/p>\n <\/p>\n Multiple sales channels, warehouses, and clients? We got you.<\/strong> Logiwa’s all-in-one dashboard gives you a bird’s eye view of your clients’ inventory. Learn how Logiwa allows you to give your customers access to their own custom portal that puts them in control of their business information<\/a><\/p>\n Over the last few years, digital marketing, ecommerce, and global communication networks have come together to produce the dropshipping <\/a>supply chain strategy. Through dropshipping, retailers can ship products they\u2019ve never even seen from wholesalers they\u2019ll never meet.<\/p>\n A retailer simply sets up an online store and fills it with products sourced from overseas warehouses or through marketplaces like AliExpress. They market these products through their digital storefront and promote the products through digital marketing channels like Google Ads, Facebook Ads, and Instagram.<\/p>\n Then, as customers place orders through the retailer\u2019s site, the retailer enters the customer information into the third party retailer\u2019s website to initiate the actual purchase. The customer receives the order and the dropshipper makes money off the difference between the retail<\/a> price and the wholesale price.<\/p>\n When used ethically, dropshipping is a clever business model that allows consumers to access products they may not have otherwise seen. However, delivering a consistent customer experience presents\u00a0 a recurring issue with the dropshipping model.<\/p>\n A dropshipper\u2019s competitive advantage is its digital storefront. Its purpose is to effectively market wholesale products and develop a brand experience.<\/p>\n When a customer receives a shipment in underwhelming packaging with a foreign mail service\u2019s logo, it diminishes the customer experience and negatively impacts the brand.<\/p>\n On the other hand, working with a white label 3PL means your dropshipping customers receive orders in branded packaging, ensuring a continuation of the brand experience. In some cases, the vendor or wholesaler may offer this service themselves, saving online retailers the trouble of finding a 3PL that also offers branded packaging and the insertion of brand materials.<\/p>\n Here are a few best practices to keep in mind when pursuing a white label 3PL solution for your dropshipping business:<\/p>\n While 3PL is used as a catch-all term for companies that offer help with warehousing and transportation, there are a number of tools, tasks, and processes that fall under this umbrella. For example, logistics involves the use of warehouse and inventory management software, order fulfillment software<\/a>, transportation management software, and more.<\/p>\n Tech-savvy companies can build their own white label 3PL solution by picking tools \u00e0 la carte and bringing them together to create their own logistics ecosystem.<\/p>\n\n
Three Types of 3PL Services<\/h2>\n
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Transportation Management System<\/h3>\n
Managed Transportation Services<\/h3>\n
Fully Outsourced Transportation Management<\/h3>\n
How 3PL White Labeling Helps Brick-and-Mortar Retailers Compete With Amazon<\/h2>\n
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3PL White Labeling Solutions for Dropshippers<\/h2>\n
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Building an \u00c0<\/i> La Carte White Label 3PL Solution<\/h2>\n
Using White Label 3PL WMS Services<\/a> Solutions on an As-Needed Basis<\/h2>\n