Home – New Forums Logistics Should I get 3PL close to my location?

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  • #988582
    bennygill
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    Hello everyone.

    I import goods from overseas and sell online (retail) and I am about to upgrade to 3PL services. Also I live in Sydney.

    I’m currently talking with a number of 3PL providers, some of which are not located in Sydney. For example a few are in Melbourne and some are in Adelaide.

    Is it a bad idea to go with a 3PL provider who not physically close to my location? If they offer a better price is it worth having the the warehouse located somewhere I cannot access?

    The goods get shipped to their warehouse and then sent to the customer from there so I dont really see the difference if the warehouse is located in Sydney or Melbourne. But there may be something I am overlooking. Am I setting myself up for a lot of headaches by doing that?

    #1167876
    akagrp
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    Hi Benny

    It would be worth checking the cheapest route in importing goods to Australia, as many shipments tend to arrive in Sydney Ports and then get rail or truck transport to other states – pose question to your Freight Forwarder and compare the difference in initial import freight costs

    Also take into consideration where the majority of your customers will be, Sydney is a better location as in the Middle so freight from 3PL to Brisbane or Melbourne will be cheaper then say Melbourne to Brisbane

    Let us know how you go, always interested to hear individual experiences

    #1167877
    bennygill
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    Yes that is true, thanks for pointing that out.

    I think purely for ease of access if something goes wrong and I need to get to the warehouse I will have the stock kept in a Sydney warehouse.

    #1167878
    RodBartley
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    bennygill, post: 194487 wrote:
    Hello everyone.

    I import goods from overseas and sell online (retail) and I am about to upgrade to 3PL services. Also I live in Sydney.

    I’m currently talking with a number of 3PL providers, some of which are not located in Sydney. For example a few are in Melbourne and some are in Adelaide.

    Is it a bad idea to go with a 3PL provider who not physically close to my location? If they offer a better price is it worth having the the warehouse located somewhere I cannot access?

    The goods get shipped to their warehouse and then sent to the customer from there so I dont really see the difference if the warehouse is located in Sydney or Melbourne. But there may be something I am overlooking. Am I setting myself up for a lot of headaches by doing that?

    Hi bennygill,

    Finding a 3PL company right next to you does not necessarily mean that they are going to be the best fit for your business. There are so many great factors to consider on who to choose to perform your outsourced warehousing and distribution. Other things could have a big impact such as the specialty of the fulfillment company and their pricing. Two factors come into consideration when making this decision – where your product is manufactured and where your customers are. For example, if your products are produced in China, it would make sense to choose a 3PL company in or near a major port in Australia. If you ship to customers all across the Australia, finding a fulfillment company that is centrally located may be the best option, despite their local headquarters.

    Regards,
    Rod

    #1167879
    Matt @NMM
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    Hi
    When searching for a 3PL service provider- location is not the most important aspect to consider.
    Our facility is located in Canberra and while we are not near the inbound Ports- I find that transport from Port (Syd to CBR)- is relatively the same as transporting to outer Sydney Industrial areas.
    Obviously if your 3PL choice was at Botany right next to the docks- that would be beneficial, but storage & fulfilment costs are generally higher than those in the outer Sydney areas due to increased rent & overheads.

    Ideally, you are engaging in a partnership where your involvement in the “physical” work of receiving, fulfilment and pick pack is being entrusted to the provider (at a price). Keywords being partnership & trust.

    As an inventory specialist myself, the main thing i look at is :
    (WMS) Warehouse Management Systems- find out what their systems are, what they do (processes for receiving, storage etc) and cost associated for those activities.
    What information is available to you, especially in relation to inventory & stock reporting access.

    Is that information available to you 24/7 through online access?

    Ideally – you want to be able to see everything from

    • Stock on hand ,
    • Sales Orders & their status,
    • Costs attributed to each order ( pick pack/packaging etc)
    • “live” transaction data.
    • Notifications when stock levels are low- email alerts and alike

    If they can provide that to you- then you can be anywhere and manage your business from the accurate data provided.

    As i mentioned, from Canberra- we have the same overnight transit lanes up and down the east coast (Syd, Melb,Bris) so if the majority of your customer orders are from this region- (analyse your historical orders) the service delivery times wont deviate, therefor location is somewhat insignificant.

    If you have engaged 3Pl providers and received responses- Feel free to buzz me if you need any assistance with logistical jargon or have any questions- I’m more than happy to help

    #1167880
    3pl guy
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    • Total posts: 4
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    Hi Benny,

    How did you go about deciding about your 3PL needs?

    If you still require assistance in Sydney, I am in a position to help out.

    Cheers,
    3PL Guy

    bennygill, post: 194487 wrote:
    Hello everyone.

    I import goods from overseas and sell online (retail) and I am about to upgrade to 3PL services. Also I live in Sydney.

    I’m currently talking with a number of 3PL providers, some of which are not located in Sydney. For example a few are in Melbourne and some are in Adelaide.

    Is it a bad idea to go with a 3PL provider who not physically close to my location? If they offer a better price is it worth having the the warehouse located somewhere I cannot access?

    The goods get shipped to their warehouse and then sent to the customer from there so I dont really see the difference if the warehouse is located in Sydney or Melbourne. But there may be something I am overlooking. Am I setting myself up for a lot of headaches by doing that?

    #1167881
    bennygill
    Member
    • Total posts: 29
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    3pl guy, post: 197396 wrote:
    Hi Benny,

    How did you go about deciding about your 3PL needs?

    If you still require assistance in Sydney, I am in a position to help out.

    Cheers,
    3PL Guy

    Hello,

    Yes thanks I ended up going with NPF and their warehouse in Sydney.

    Thanks,
    Ben

    #1167882
    3pl guy
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    • Total posts: 4
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    Great stuff.

    bennygill, post: 197397 wrote:
    Hello,

    Yes thanks I ended up going with NPF and their warehouse in Sydney.

    Thanks,
    Ben

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