3PL Logistics
What Are the Benefits of an International Warehouse in China?
Did you know that China’s industrial output rose by over 9% last year? With low labor costs and great infrastructure, it remains the manufacturing hub of the world. So how can you benefit by conducting business in China?
If you are finding warehousing increasingly costly and hard to manage, then this country could have the answers. Read on as we discuss the benefits of an international warehouse in China.
Global E-commerce Is Competitive
If you want to access a global e-commerce audience, you have to be prepared to work for it. Whatever your product is, you will have numerous competitors, many of whom sell the same items. That means you need to take every advantage you can to get a competitive edge.
Having a new warehouse service in China lets you speed up your fulfillment process. You can reach audiences in the far east and Australia much quicker than you would do by posting from the US. You also get the chance to cut down on costs, which you can pass on to the consumer or absorb as profit.
Efficient Processes
There are numerous different challenges when it comes to warehousing. To deliver the most efficient service, you need to manage inventory, fulfillment, and transportation. Doing them properly requires organization, time, and the hiring of a large team.
By outsourcing to an international warehouse in China, you relinquish these jobs to a third party. You won’t have to manage a workforce or juggle your own team with those handling logistics. Instead, it will all be done for you.
All of this improves the efficiency of you and your team. You can redeploy workers to perform other tasks, and you can concentrate on what really matters: Getting leads and improving conversions.
Cost and Profits
While you save a lot of time, the financial advantages should not be underestimated either. In the US and Europe, warehousing can cost a lot of money. Once you start paying for the space, you also need to hire the staff to operate it for you.
With this model, you don’t have these incurred costs. Instead, you have to pay the third party for their service, which will work out much cheaper.
In China, the cost of labor is lower, meaning these operations can be performed at a reduced price. Added to this is the fact that a lot of the shipping costs are lower, making it competitive to send items across the world.
Access to Major Shipping Solutions
If you find shipping challenges to be a constant and recurring headache, then the right warehouse in China can help. By finding the correct one, you can have your products next door to one of the world’s major ports.
These will often have both land and air routes close by as well, so a whole range of shipping options is accessible quickly. With 24-hour customs clearance as standard at most major ports, your items can be on the way to buyers in an instant. All of this provides a huge advantage when it comes to international trade.
Easy to Scale Up
A time may come when you need to scale up. However, retail is a fickle business and what may be needed one year or season could drop the next. If you invest in space and staff, once in place, you are left with the ongoing costs.
It also takes time to put these things in place. If you want to do it fast and with minimum costs, a warehouse in China is a viable solution. The warehouse management will inform you of any leftover products lying in your inventory, so you are not paying for space housed with products that are not converting.
If you ever need to scale back the business, this works in the same way. You can reduce the space and stock you need without cost.
Human Resources
The last few years have seen what has come to be known as the great resignation. For businesses, this has made it hard to attract and retain employees in a wide range of industries. This process can be long, involving advertising, interviewing, and then the time of settling a new employee into the job.
China has human resources in abundance. There is a large population who are always looking for work, especially in the warehousing sector. Manpower is easy to hire and lets you scale up much more efficiently, without the long processes.
For specialist jobs, these people will already be on hand. You won’t have to train people or even put them through courses and certifications. Instead, the company will have what is needed at its disposal.
Networking and Experience
Once you have a warehousing company, you may need other contacts. It could be a manufacturer, or you may want access to other foreign trade zones. When you don’t speak the language and understand the culture, this can be extremely hard, and making the step is a huge financial risk.
The operators of warehouses will have numerous contacts. You will be able to ask their advice on who to use and, crucially, trust. As well as this, you can tap into their expertise and knowledge on everything from handling to shipping.
Finding an International Warehouse
Now you know the benefits of an international warehouse in China, you just need to find one. There are several companies online and middlemen who will help you navigate the cultural and language gaps.
If you need precision engineering, manufacturing, or warehousing in China, then Shield Works should be your first stop. We can provide a range of solutions, lowering your costs and improving efficiency. Contact us to discuss your needs and let our expert staff begin increasing your company’s efficiency.
Buying From Chinese Websites? 6 Benefits of Package Consolidation
It’s estimated that every split suborder adds a shipping cost of 1.9 dollars. Even though that number might seem small, the figures amount to a lot of wasted money.
Plus, the excess packaging leads to environmental waste, which is terrible for the environment. So, what’s the solution?
Package consolidation is a great way to reduce shipping costs while still receiving and sending high-quality products. If you’re not already using order consolidation methods, you will be after reading this article.
This article will briefly summarize package consolidation and how it can benefit you. That way, you can start implementing changes by consolidating packages.
What Is Package Consolidation?
As online shopping continues to rise, there are more and more packages being transported worldwide every day. From a business point of view, this is the dream scenario.
However, it can cause logistical problems in reality, resulting in higher costs and limited resources for other parts of your business. The idea behind package consolidation is that you group multiple items in one place.
This is an excellent solution if you work in clothes retail and have several t-shirts going to one household. You can safely transport goods without having to pack various boxes and packages.
Package consolidation is a low-cost alternative to sending packages internationally and could save you thousands of dollars in the long term because you can optimize the space in each container.
6 Benefits to Package Consolidation
Above all else, having an order arrive in one box with all the items is a guaranteed way to make your customers happy. When someone orders online, they want to receive everything at once.
1. Happy Customers
Customers keep a business thriving for years; without them, you wouldn’t be able to sell your beautiful products. So, it’s a top priority to make your customers satisfied.
When there’s so much competition online, you want to do everything you can to stand out and get noticed. The easiest way to build a better reputation is to send orders that arrive quickly and efficiently.
That means grouping items together into one package. The order is also less likely to experience damage in transport when it’s sent with other products, which will lead to fewer customer complaints.
2. Opportunity for Bundle Packages
Being in charge of manufacturing means you have control over the product assembly, so you can choose to group certain items in your store.
For instance, if you sell sports shorts, you can offer a deal for a pair of shorts, a t-shirt, and socks. You can get customers’ attention and encourage them to buy products together.
This marketing strategy makes it easier for you to transition to package consolidation and cut shipping costs while providing a great customer experience.
Package consolidation works for everyone!
3. Offer a Free Gift for the Extra Weight
In the shipping world, you’ve probably come across dimensional weight (DIM), which refers to the weight of a package and its dimensions.
Sometimes, you can be charged extra if the DIM exceeds the package’s weight. If you’re looking for a way to minimize these frustrating costs, you can use the free space with package consolidation.
For example, you can include a free cycling hat, notebook, or another item suitable for the order. Not only will your customer receive a freebie, but you’ll also reduce shipping costs and use the extra weight!
4. Package Consolidation Costs Less
On average, package consolidation costs less than sending items separately. Sometimes, you have to cover charges for deliveries to remote locations, delays, and other issues that arise during the shipping process.
Thankfully, when you merge orders into one package, you’re already reducing the overall cost of the order. Even though you might still encounter extra charges, it will be much less than if you shipped separately.
So, it won’t solve the problem entirely, but it will make your budget more flexible and allow you to maintain a high standard for your products without sacrificing the shipping time.
5. Better Safety for Workers
The employees in charge of your shipped orders have to handle hundreds of packages daily, which comes with many risks. There are often safety problems as the volume of packages is so high.
During the pandemic, logistic departments suffered from the absence of employees, which is why it’s essential to find practical solutions that take the pressure off these workers.
Package consolidation creates fewer packages for employees and reduces the health risk of transporting items from country to country.
6. A More Eco-friendly Approach
If fewer packages are making their way around the world, there is less waste being produced which pollutes the environment.
So, if you’re concerned about your impact on your planet, package consolidation is a great way to get involved with the movement to more eco-friendly practices.
You can also switch to eco-friendly packaging materials like recycled paper and cardboard that can be reused in other areas of life. It’s a great way to show you care about the environment and are actively managing resources.
But, first, you need to work with a manufacturing company that knows what they are doing. Otherwise, you could end up with broken items, damaged packages, and worthless investments.
Luckily, at Shield Works Precision Manufacturing, we have years of experience handling package consolidation in China. Our services include quality inspection and testing as well as order consolidation.
We can assist you with anything you need.
Choose the Right Option With Package Consolidation
As you can see, package consolidation is the best way to reduce shipping costs and make your customers happy with your products. There are also numerous other benefits like helping the planet and reducing safety risks.
You must work with a suitable manufacturer to ensure your high-quality products and the shipping from Chinese product sites runs smoothly.
Our team is ready to answer any questions you have about changing to package consolidation. So, you can start shipping goods and getting them to their new home as quickly as possible.
Get in contact to learn more about our services and what we can do for you at Shield Works Precision Manufacturing.
Everything You Need to Know About 3PL Warehousing in China
So, you’ve decided that your supply chain needs a little help. Maybe you’ve got too much work for your in-house team to handle, or maybe you’re just looking for someone with more skill than you have.
There are a lot of reasons you might find yourself in this situation, but the solution is always pretty clear: hire an expert. 3PLs (third-party logistics providers) specialize in warehousing and distribution. They have the infrastructure and knowledge to get your products where they need to go – on time and on budget.
For a look at 3PL warehousing and how hiring one can help improve your supply chain, read on.
What Is 3PL Warehousing?
A 3PL can provide warehousing services for your wholesale products, manage all aspects of your inventory system, and even help you develop the processes necessary to ship orders from your store on time.
This means that when someone places an order through your eCommerce website, the 3PL will receive the order and store it in one of their warehouses until it’s ready to be shipped out.
3PL Services vs. Drop Shipping
Drop shipping is a product-based business model that allows merchants to sell their goods without having to store or ship the products themselves. When you drop ship, you place an order with a supplier, who then ships to your customer on your behalf.
3PL services offer more flexibility than drop shipping because they allow you to outsource all aspects of logistics, including warehousing and shipping. Unlike drop-shippers who have limited control over the process, 3PLs provide the additional benefit of greater oversight over storage conditions and quality control during storage and transit.
Why Choose 3PL Warehousing?
3PL warehousing offers several benefits to businesses that want to outsource their storage and fulfillment needs. These include:
Save Time and Money
One of the most important benefits of 3PL warehousing is that it can save you money by reducing your overhead. You’ll no longer have to worry about rent, maintenance costs, and equipment purchases for your warehouse. A 3PL provider can also help you reduce your staffing costs and avoid payroll taxes.
Improve Your Customer Service
With a 3PL partner, you’ll be able to offer more shipping options, shorter lead times, and faster delivery at lower prices than you could if handling shipping on your own. You’ll also be able to offer better customer service by responding more quickly and effectively to customer queries, as well as tracking orders. Your customers will appreciate having access to accurate information about the status of their orders.
Get the Right Products to the Right Customers
With a 3PL partner, you’ll be able to take advantage of their years of experience and relationships with freight forwarders, customs brokers, airlines, trucking companies, and others in the supply chain.
You can also get a leg up on your competitors by taking advantage of their global footprint and selling products in markets that are otherwise inaccessible. Your 3PL might even help you find new products for specific regions and give you the ability to test your ideas before making an enormous investment.
Expertise in Logistics Management
Third parties generally have more experience handling inventory than many small businesses do; therefore offering valuable industry-specific knowledge. They’ll know how to move your product in the most efficient and effective manner possible, whether by rail, air, or sea.
How Does It Benefit Your Business To Use A 3PL Warehousing Company?
You might think to yourself, do I really need to outsource my warehousing and logistics operations? The answer is maybe. It depends on many factors unique to your business, including size, product mix, growth plans, and more.
However, there are some general benefits that usually make working with a third-party logistics provider in China the right choice for most businesses.
Reduce Risk
By outsourcing some of your operations to third-party logistics companies, you’ll be able to reduce the amount of risk involved in doing business overseas without sacrificing any of the benefits associated with having a Chinese presence(accessibility, increased market share, etc.). This is because these providers have the experience, infrastructure, and local knowledge needed to help you navigate China’s unique business environment.
Improved Efficiency
When a single company handles all logistical processes for error. This allows your business to run more smoothly, freeing up time and resources that can be better spent elsewhere. And with most third-party logistics companies, you’ll also have access to state-of-the-art equipment, which will allow them to handle all of the heavy lifting so you don’t have to.
Increased Productivity
When outsourcing logistics services, companies can focus on what they do best while leaving order fulfillment to another team. This means that your company will be able to get more done with fewer people – which increases overall productivity for everyone involved.
How 3PLs Handle Order Fulfillment
Once the order is received and processed by your 3PL, they will then assign it to a warehouse closest to your customer. From here, a picking team will gather the items from their respective racks and put them into totes or carts for the next step: packing.
Afterward, another team will ensure that everything was picked correctly before boxing it up for shipping. At this stage of fulfillment, your provider will add any extra packaging materials, like bubble wrap or peanuts, to guarantee safe transport. After being packed up, all orders are ready for delivery!
In some cases, orders may need to be returned before they can be shipped out again. This is usually because of damage caused during transit. Your provider will inspect the package first before sending it back.
When Do You Need a 3PL Warehouse in China?
If your company ships at least 100 orders overseas each month, it’s probably time to consider working with a third-party logistics provider in China. But 100 is not the hard and fast rule, as many factors can affect this number.
There is no magic number at which time a company should start working with a 3PL. When you find your business growing so much that the volume of orders being placed has become too high for your small team to manage in-house, then it’s time to hire a 3PL.
There are some other signs that can help you determine whether you need a 3PL. If any of the following apply to your business, it’s time to look for a 3PL warehouse in China:
You’ve Run Out of Storage Space
Perhaps you started your business in a small office space with enough room to store inventory on-site. But as orders start rolling in, that space quickly becomes crammed. If you can’t store products, how can you possibly fulfill orders?
Working with a 3PL will give you access to more storage space so you can keep meeting customer demand.
You’re Spending Too Much Time Shipping Orders
If it’s taking up too much of your time and energy managing shipments, then it might be time for some help. A quality 3PL will have the resources and technology needed to get products out the door in a few hours.
Your Employees are Stretched Thin
As your business grows, chances are good that your team is being pulled in different directions, trying to handle everything at once. This can lead to mistakes, frustration, and even burnout. Adding a 3PL to your team can take some of the pressure off by lightening the workload.
10 Tips to Find the Best 3PL Services Company for Your Ecommerce Business
Just like with any other decision, you want to make sure that the 3PL provider you choose will help optimize your business and not hinder it. However, this is easier said than done.
With so many 3PL service providers out there, how can you ensure that the one you choose will be right for your business? Here are some tips:
1. Start with Reliability and Speed
As an e-commerce company, it’s important to make sure that your products go to consumers fast and get delivered without any kind of damage. Ask your potential provider about their average shipping times and any procedures they have in place to prevent or address damages during transit.
A provider with same-day shipping can be especially useful if you offer expedited shipping services.
2. Consider Their Ability to Handle Returns
Ecommerce businesses typically have a higher return rate than brick-and-mortar stores, so it’s important that your 3PL provider can handle returns efficiently. Find out what kind of system they have in place for managing returns and ask about how they communicate with customers regarding status updates on refunds or replacements.
3. Pricing Matters, But Don’t Sacrifice Quality
Of course, you want to save money wherever possible, but with your 3PL services provider, quality should be more important than price. Make sure you compare apples to apples when getting quotes.
4. Experience Working In Your Industry
Ensure they have the right equipment and technology to handle your products. But more importantly, they should have experience working in your industry so they understand the unique challenges that come with it.
For example, if you’re in the fashion industry, you’ll need a 3PL that can handle delicate and high-end items. If you’re in the food industry, they should have processes in place to prevent cross-contamination.
5. Client Support
Ideally, your 3PL is easy to reach when you need them and quick to respond. Good communication is key in any relationship, so make sure the lines of communication are open between you and your fulfillment partner. Of course, China’s time zone difference can present some challenges, but a good 3PL will have someone available during your business hours.
6. Flexible Pricing Options
While price is always a concern, you don’t want to be locked into a per-unit charge that doesn’t reflect your monthly storage and processing needs. Look for a 3PL that offers options like minimum commitment pricing or value-based pricing, rather than charging you by the unit.
Some providers charge per square meter of warehouse space used; others offer discounts based on the number of units shipped per month. Whatever the case, make sure you understand your 3PL’s pricing structure before signing a contract.
7. Technology Integration Capabilities
Perhaps the most important criterion on this list is integration capability. Do their systems seamlessly connect with yours? Can they automatically track and update inventory levels in real-time so that you always know exactly what’s in stock and where it is?
If not, keep looking. The best providers offer comprehensive tracking capabilities and a simple customer portal.
8. Order Consolidation
When your customers are ordering products that come from several vendors, a 3PL that can merge those orders into a single shipment can be a huge time—and money—saver. When evaluating providers, inquire about their order consolidation capabilities.
9. Customization
Some of your customers may have specific requests; they need a custom-sized box or a gift-wrapped item, for example. If you can find a provider that can customize orders to meet the needs of your unique clients, you’ll be able to streamline and improve customer experiences.
Also, it helps if your provider can offer custom branding on the shipping boxes. This is a small but powerful way to reinforce your brand and keep it fresh in your customers’ minds.
10. Reputation
Last but not least, don’t forget to ask for customer references. Talk to others who have used the 3PL you’re considering and get their honest opinion.
Expand Your Business Reach
3PL warehousing can help you expand your business reach by allowing you to enter new markets and create new distribution channels. Not only will you be able to offer faster delivery at lower shipping costs, but you can also take advantage of their experience in international shipping.
Whether you are looking for short- or long-term storage warehousing solutions, Shield Works has the experience and expertise to provide you with cost-effective storage and shipping solutions. Reach out to us for warehousing processes that help you succeed.
Why Do You Need A 3PL Company To Grow Your Online Business?
What is a 3PL Company?
3PL stands for Third Party Logistics. A 3PL provider, such as C2W, offer outsourced logistics services. Essentially this means that we will help provide management over one (or more) procurement and fulfilment activities.
Fulfilment activities refer to the process of distribution and shipping.
Procurement activities simply involve acquiring or selecting goods, services and work required for your specific job. Such roles can include: the process of selecting vendors, strategic vetting or actually purchasing the goods.
Therefore, 3PL providers deal with the physical movement of your goods from point A to B, as well as providing other services involved in the journey (such as warehousing, terminal handling, packaging etc.).
What are the benefits of using a 3PL Company?
Cost
The number one benefit of using a 3PL Company is monetary savings! By using a 3PL Company, this removes the financial pressure on your company for having to fund warehouse storage and staff who monitor supply chain processes. By asking us to do this for you, it means you only pay for the service package itself and can pick and choose when you use these services. Ultimately, by using 3PL providers you aren’t paying for warehouse and maintenance all year round. I mean what online business DOESN’T love saving?
Customer Satisfaction
In this era, good online service is largely linked to access to quick and efficient shipment and delivery. Online shopping is becoming increasingly popularity as the high street slowly dies meaning that your online company’s efficiency in shipment and delivery will undoubtedly be a commonly used metric for measuring customer satisfaction.
Using a 3PL provider means your e-commerce business can gain significant customer loyalty and satisfaction by letting the professionals deal with fulfilment services. This process will be made even easier with our western owned and managed company because we believe in western standards of communication and service.
Our expertise
Another important benefit to consider when deciding on your 3PL Company is performance.
Due to our expertise and experience in 3PL services here at C2W, efforts in e-commerce procurement and fulfilment activities will be more time and cost-effective than less mature manufacturing companies. We have a verified history of successfully meeting demand and are able to scale operations consistently and smoothly.
Here at C2W, we remove the stress of such demands so that you can focus on the things that matter, improving and growing your online business.
Supply Chain Management
By hiring C2W as your 3PL Company, we can also analyse the supply chain and define any cracks, enabling us to provide efficient solutions and improvement to e-commerce efficiency of your business.
Direct Business
Hiring a 3PL company cuts out the middle man, meaning you can do business more directly and have one point of contact when dealing with your goods or services. We handle a broad spectrum of services meaning that you don’t have to hire a freight forwarder in the process (who don’t actually deal with shipment or fulfilment themselves). And as all businessmen know, direct business is straight talking business!
Accountability
When acting as your 3PL provider, C2W takes direct responsibility for your goods or services. You can be assured to receive reliable services and be sure that C2W will take accountability for business. Unlike a freight forwarder, who acts as an intermediary player in the chain, we are held directly accountable for your shipment processes. With C2W 3PL, you can put your mind at ease.
Some of the 3PL services we offer:
The following list is just a minor sample of the wide range of 3PL Services we offer here at C2W. For a more detailed, please visit our 3PL services offered in China and the US under our ‘Services’ page.
- Receive and inventory all incoming products
- Manage full inventory in the US using our professional WMS (Warehouse Management System; SkuVault)
- Drop-shipments for all orders (pick and pack)
- Fulfilment of FBM (Fulfilled By Merchant) Amazon Orders
- Restock Amazon warehouses for products shipped FBA (Fulfilled by Amazon)
- Quality control
- Consolidation
- Repackaging
Contact us for an accurate quote based on your project. Please don’t hesitate to get in touch with any questions you may have!