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  • #1205448
    LucasArthur
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    Fredy Namdin, post: 244993, member: 83865 wrote:
    Hi guys,

    Very interesting discussions here. In my other business (industrial supplies) we have our own warehouse in Welshpool (Perth). We never used 3PL service, although we outsource all delivery services to different courier companies.

    A couple of things came to my mind when I was comparing 3PL vs own warehouse:

    1. Delivery cost: In our warehouse, we use multiple courier services (we even strap some goods together to reduce delivery costs) depending on volume, distance, size, etc to minimise cost. If we use 3PL it seems like we are bound to pay a fixed cost?
    2. Substitute product: Because we are operating our own warehouse if a product is out of stock we can quickly organise with the customer to send substitute product. I am sure it is also possible with 3PL, but I imagine there would be an extra day to organise substitute products?
    3. Speed and Flexibility: Operating our own warehouse, if a customer requires product to be delivered within the hour we can call our courier (that can deliver within the hour), is it possible with 3PL?
    4. WIWO: If required, customers can just come in to pick up their order pretty much anytime of the day. Can they do the same if we use 3PL?

    These are some thoughts that came to my mind. Please bear in mind that we are operating in industrial supplies (mainly consumables) where customers need their goods yesterday and hence speed and flexibility is of the essence here, not to mention most the goods are bulky and heavy, with certain DG to add to the complexity.

    Hopefully they can serve as an extra information to your business.

    All the best!
    Hey Fredy,

    Nice additional post to the thread.. whilst i cant attest to other 3PL’s i can answer on behalf of ourselves.. without trying to blow my own trumpet, of course.. What has to be said is that it is paramount that the relationship of sorts between the two, making communication the easiest part.. Lots of 3PL’s will promise the world, although the sheer size of some mean that there is inherently flaws built in with regards to timelines and others, whereas smaller boutique operators can turn things around quicker – depending on courier/deliver service used (they may not be around when you need them sort of thing)..

    Below is a few replies to your questions:
    1. A good operator will try to configure your parcels the best possible way to reduce costs – remembering that it needs to be beneficial on cost v time to do as well in the eyes of the 3pl. They should also shop your freight around at the beginning and also know which to go to for your particular items with particular destinations (from a cost perspective) – this is about caring for your clients and knowing what they expect as well, developing a relationship is key.

    2. Substitutions is a tricky one, as you should ideally know which product is in or out of stock from your system on your side before it gets to the 3PL allowing you to mitigate these issues.. However, if one slips through, a good 3PL should pick up the phone and contact you (not always easy with larger 3PLs as they run automated with little time to think) to ask your advice on how to proceed – personally i know i call my customers as i pick, if there are any issues that arise, and try to resolve on the spot..

    3. A courier that can deliver within an hour.. Ok, this is a double edged query and allow me to explain.. Almost anything can be accommodated, however, you will or may find someone is willing to help out on the odd time this occurs although if it was a regular issue you would find it would become difficult to sustain and the questions would start to be raised about the business model of the client (you).. not in a negative way, although if you wanted to have 1 hour turnaround on a regular basis for your buyers, having your own warehouse and staff who’s sole priority is YOU will become important, because a 3PL services multiple businesses and works to a time frame in order to achieve all operational objectives daily – if a client had a 1 hour turnaround job request daily, this would be hard to accommodate. It can be done to help out ad-hoc emergencies, generally, although always remember a 3pl has more than one client.

    4. WIWO service, if its a requirement, comes back to the answer in 3.. If you are offering a retail operation (really that is what WIWO is) you should have your own premise.. It can be done, although the burden you inadvertently place onto the 3PL is not what a 3PL is meant to be doing – they pick, pack and arrange delivery… Also remember, your client may or may not show up at a certain time.. they may come 1hr late or not come at all… They may have questions about product, they may want to inspect it, they may want to change it over when changing mind, they may question price – not sure a 3PL is equipped for this? Also, a 3PL would more than likely NOT have the relevant insurance for you to have customers visit their location or have the appropriate inductions available due to OH&S requirements in their industry to do such a thing…

    Sounds negative some of it, although i feel questions 3 and 4 are geared towards a business operator seeking their own warehousing or retail solution and as such may be a reason you have opted for this yourself? They are tricky questions and expectations of a 3PL provider and technically do not fit within the 3PL framework for said reasons (and more) above.

    Great questions and thoughts though…

    Have a great weekend.

    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1205449
    Fredy Namdin
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    • Total posts: 45
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    Hi Jason,

    Great explanations, thank you so much for taking the time to answer each question thoroughly. I have to say that your experience shines through each answer, my respect for that.

    Have a great weekend too!

    Cheers,

    Fredy

    #1205450
    Spiffy Brian
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    • Total posts: 25
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    Hi Jesse,

    I’m the co-founder of Spiffy Stores here in Sydney, and we’re doing a big push at the moment in the area of fulfilment and shipping, so we’re on the lookout for new services that we can integrate with to provide additional options for our customers.

    Our big focus is on providing the best ecommerce support for Australian and New Zealand customers, so building integrations with other Australian companies is something we want to do. We have found that the big overseas companies don’t really provide much focus or support for the needs of local customers, so this is something we’re keen to improve on.

    I checked out your site, but I couldn’t find any information on your integration APIs. It would be great if you could point me in the right direction in this regard.

    Cheers,
    Brian

    Jesseemia, post: 244870, member: 92613 wrote:
    Hi Rebecca

    We are working to make it so that our integration with our API’s work well together. We have currently Shoppify and WooCommerce with us on KeepSpace and made the actual ability to have inventory counts done from our stock that would be integrated with the service while still using Australia Post eParcel for distribution.

    I’m really keen to build our business as well with soloist who want to outsource their distribution operations while they focus on sales and marketing

    Cheers
    Jesse

    #1205451
    webdever
    Member
    • Total posts: 34
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    Jesseemia, post: 244870, member: 92613 wrote:
    Hi Rebecca

    I know that Shippit and others are mainly 4PL providers and do not actually provide the physical service and just place in their platform links and API integrations.

    http://www.keepspace.com.au

    We are working to make it so that our integration with our API’s work well together. We have currently Shoppify and WooCommerce with us on KeepSpace and made the actual ability to have inventory counts done from our stock that would be integrated with the service while still using Australia Post eParcel for distribution.

    I’m really keen to build our business as well with soloist who want to outsource their distribution operations while they focus on sales and marketing

    Cheers
    Jesse

    Hi there have been looking for something like this for a while and that other users post says it all. Your website is great with fairly clear pricing.

    Is there a minimum cost per month, a minimum spend?

    So you receiving a box with 10 boxes in it of 16cm x 10cm x 6cm and weight of 320g

    Shipping 4 of those boxes to a customer
    shipping a single box to 6 individual customer
    over a month

    What would that months bill be?
    Next day AUS Post.

    #1205452
    hardwarebox
    Member
    • Total posts: 9
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    Jesseemia, post: 244869, member: 92613 wrote:
    Hi I’m a new member here too.

    My Wife suggested this thread and others similar in regards to 3PL.

    We set up a company here in Perth that focuses on exactly eCommerce businesses who are not getting the kind of service that they need along with the IT level required.

    I like how your wanting a translucency approach in not just pricing but also setting up.

    I would be interested to know what you think of our site in how we have approached the topic.
    http://www.keepspace.com.au

    Cheers
    Jesse

    Keep space looks really good! Nice and clear how you’ve set out your pricing. We may be in contact!

    #1205453
    Jesseemia
    Member
    • Total posts: 11
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    webdever, post: 249125, member: 65533 wrote:
    Hi there have been looking for something like this for a while and that other users post says it all. Your website is great with fairly clear pricing.

    Is there a minimum cost per month, a minimum spend?

    So you receiving a box with 10 boxes in it of 16cm x 10cm x 6cm and weight of 320g

    Shipping 4 of those boxes to a customer
    shipping a single box to 6 individual customer
    over a month

    What would that months bill be?
    Next day AUS Post.

    Hi There webdever

    Thanks so much for the praises, its an honour.

    my email is [email protected] and would be happy to provide more details.

    But for a quick summary for others to read.

    Assuming the SKU is one of those boxes:
    Box = SKU1
    SKU1 = 0.16 x 0.10 x 0.06 = 0.00096m3
    QTY = SKU1 (10)

    Storage:
    SKU1 = 10 x 0.00096m3 = 0.0096m3 worth of storage space
    Box size (less then 0.11m3 = $4.25/month

    Fulfilment
    Order 1 – 4 x SKU1
    Order 2 – 1 x SKU1
    Order 3 – 1 x SKU1
    Order 4 – 1 x SKU1
    Order 5 – 1 x SKU1
    Order 6 – 1 x SKU1
    Order 7 – 1 x SKU1

    Order 1
    Pick – $2.00
    Pack – $2.45
    Material – $3.50
    Print Label – $0.50
    Shipping – Varied on location

    Est $8.45 + shipping

    Order 2-7
    Pick – $0.50
    Pack – $1.50
    Material – $0.68
    Print Label – $0.50
    Shipping – Varied on location

    Est $3.18 + Shipping
    x 6 = $19.08 + Shipping

    If this is partnership is API Integrated
    = $15/month

    Total Monthly

    Storage = $4.25
    Order Fulfilments = $27.53
    API = $15
    Shipping = Varied
    Total = $46.78+shipping

    I do hope that answers in summary your question. please email me for a more detailed view buddy [email protected] or call on 0400823912

    #1205454
    Jesseemia
    Member
    • Total posts: 11
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    hardwarebox, post: 249146, member: 79588 wrote:
    Keep space looks really good! Nice and clear how you’ve set out your pricing. We may be in contact!

    Awesome my number is 0400823912. It would be great to talk to you.

    #1205456
    webdever
    Member
    • Total posts: 34
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    Amazing thanks will be doing it, I was ready to swallow the $500USD minimum that shipwire charges..

    Thanks will email.

    By the varied shipping cost, can you do AUS post? Does Aus Post come to collect?
    I dont mind paying up to $20 per item to ship AUS wide, do you thing that could cover it?

    Jesseemia, post: 249151, member: 92613 wrote:
    Hi There webdever

    Thanks so much for the praises, its an honour.

    my email is [email protected] and would be happy to provide more details.

    But for a quick summary for others to read.

    Assuming the SKU is one of those boxes:
    Box = SKU1
    SKU1 = 0.16 x 0.10 x 0.06 = 0.00096m3
    QTY = SKU1 (10)

    Storage:
    SKU1 = 10 x 0.00096m3 = 0.0096m3 worth of storage space
    Box size (less then 0.11m3 = $4.25/month

    Fulfilment
    Order 1 – 4 x SKU1
    Order 2 – 1 x SKU1
    Order 3 – 1 x SKU1
    Order 4 – 1 x SKU1
    Order 5 – 1 x SKU1
    Order 6 – 1 x SKU1
    Order 7 – 1 x SKU1

    Order 1
    Pick – $2.00
    Pack – $2.45
    Material – $3.50
    Print Label – $0.50
    Shipping – Varied on location

    Est $8.45 + shipping

    Order 2-7
    Pick – $0.50
    Pack – $1.50
    Material – $0.68
    Print Label – $0.50
    Shipping – Varied on location

    Est $3.18 + Shipping
    x 6 = $19.08 + Shipping

    If this is partnership is API Integrated
    = $15/month

    Total Monthly

    Storage = $4.25
    Order Fulfilments = $27.53
    API = $15
    Shipping = Varied
    Total = $46.78+shipping

    I do hope that answers in summary your question. please email me for a more detailed view buddy [email protected] or call on 0400823912

    #1205457
    Jesseemia
    Member
    • Total posts: 11
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    webdever, post: 249161, member: 65533 wrote:
    Amazing thanks will be doing it, I was ready to swallow the $500USD minimum that shipwire charges..

    Thanks will email.

    By the varied shipping cost, can you do AUS post? Does Aus Post come to collect?
    I dont mind paying up to $20 per item to ship AUS wide, do you thing that could cover it?

    Well if you really just want to pay for nothing then you can give us 500/month minimum lol. Its not a necessary price that you need to pay buddy

    We do have a couple accounts including Australia Post, TNT, Couriers Please and DHL.

    For shipping, if you thinking that kind of pricing we can certainly work for a better price.

    We figured that we want to work with businesses before they get to a certain size so that we can be the long term partner with them as they grow to that kind of size. :)

    #1205458
    Warehousing Fulfillment
    Member
    • Total posts: 37
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    ShipIT, post: 244622, member: 78560 wrote:
    Hello

    I think technology is key if you can provide and automated process for merchants where they can auto send through their order information, carry out address validation and then you provide tracking information back to them along with branded notifications via sms and email to their customers it will make you stand out form the rest.

    StarShipIT works with many 3pls in Australia to provide this technology and the 3pl’s we work with are growing at a great rate all with very happy merchants.

    Thanks
    Rebecca
    We use StarShipIT for our 3PL and its been great

    #1205459
    StarShipIT
    Member
    • Total posts: 14
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    Warehousing Fulfillment, post: 253170, member: 100292 wrote:
    We use StarShipIT for our 3PL and its been great

    Thanks Niki, always great to hear that from our customers! :)

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