Getting a Clear Handle of 3PL Warehousing

Getting a Clear Handle of 3PL Warehousing

The logistics outsourcing is continuously evolving as more companies are rediscovering the importance and significance of this management solution. Amidst all the changes that we are seeing the emergence of management jargon that is associated with logistics outsourcing. When we come to refer to Los Angeles contract warehouse, each may have their own understanding about the exact definition of such term. We may even ask ourselves the difference between order fulfillment and warehousing. Our proper understanding of these terms related to logistics outsourcing is very important in order for us to put across our needs and expectations. Problems will definitely crop up if we do not have a clear understanding of these commonly used terms.

A logical way to understand the framework of services that fall under logistics outsourcing is by looking at the major segments of the market targeted by each of these types of logistics services.


Los Angeles 3PL warehousing basically refers to the third party logistics provider specializing on warehousing. This is the appropriate term that should be used when you are looking for business solution that will address your storage, handling and transporting of company's products. You can attain effective control of these business functions by entering to a long term business arrangement with a contract warehouse. The 3PL company will be tasked to formulate a customized warehousing management and distribution system that will address the unique needs and requirements of your company. This kind of outsourcing agreement is sometimes referred to as 3PL contract warehousing. The main distinction of this type of logistics outsourcing is that it is done on a long term basis.


The order fulfillment is the outsourcing service that involves online processing of product orders and returns. The order fulfillment shall handle all related functions to complete the business cycle of order placement and product returns. In most cases, the client company will be a bit reserved in sharing complete information to the logistics service provider. The company can just go as far as divulging cost structure related to product storage, handling and transporting. Once the rates are finalized, the order fulfillment company shall make the necessary adjustments. Shared warehouse among companies with order fulfillment contracts is now a norm in the logistics outsourcing business.

As a general rule, the company serves only two major types of clients. These are the large client companies, and the small and medium client companies. The large companies who are looking to outsource their logistical requirements include manufacturers, large retail chain stores and wholesale distributors. These companies are seeking to outsource specific logistical requirements in order to rationalize the operations of the company. In most instances, these companies require 3PL warehousing service.

On the other hand, companies categorized as small and medium usually require the support framework for order fulfillment service deliver by a third party service provider. As we are witnessing the dynamic growth of the e-retailers, expect to see the growth of this e-solution in the near future. The generic term commonly used to refer to this outsourced logistics service is order fulfillment.

Chuck R Stewart recently stored the overstock from his store in a Los Angeles contract warehouse. He found the services of the Los Angeles 3PL firm he hired to be invaluable.

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Software for Warehousing

Software for Warehousing

Gone are the days requiring the warehouse manager to keep manual inventory and product flow records. No longer does the director of operations have to wonder exactly how much produce is in the racks today. Software for warehousing supplies comprehensive solutions for keeping a single warehouse facility or multiple warehouses spread across multiple regions running smoothly and efficiently.

The software for warehousing products available today offer a wide degree of solutions, giving you complete control of product flowing through your business. Whether you're operating a wholesale distribution company looking for a comprehensive accounting solution that incorporates customer relationship management, or a healthcare supply chain wanting to move to a self-distributing business model, there are systems available to help you streamline your supply chain and deliver dramatic cost savings and customer service.

The ability to compile inventory and supply chain data into one consolidation database will help you achieve complete inventory control.

These software solutions help companies trace their products closely throughout the entire supply chain. For companies in regulated industries, this is even more critical. The ability to control inventory every step of the way from manufacturer to service center and on to delivery to the customer builds confidence in the safety of the product.

With the new warehouse management software systems available, warehouse operations can be transformed in whole integrated logistic and fulfillment facilities. Your operation can manage your complete inventory flow in real time. Orders coming in can be matched immediately to product in your warehouse and go right into the distribution process. Many of these software packages include automated shipping and billing that improves efficiency and reduces the cost of operation.

Real time data is key to the efficient operation of warehouse distribution. The immediate availability of information improves productivity in the warehouse. At the same time employee performance increases. With a computerized information flow directly in the workers hands, pick and pull accuracy dramatically improves.

This cycle of information is essential to warehouse management. As information flows quickly from management to workers on the floor where the physical inventory handling takes place, accurate information is the key to a successful operation.

The days of pencil and paper are gone. New technologies like bar code scanning and Radio Frequency Devices (RDID) allow warehouse operations across entire regions run smoothly. Workers can carry up-to-date inventory information with them at all times in hand held computers. The home office no longer has to wait days for inventories to be tallied from multiple locations. Inventory counts update in real time each time the worker scans a bar code. Shipping records are also able to be updated as soon as product is moved in the warehouse and put on a truck for delivery.

Companies find that putting a warehouse management software system into place can greatly improve the bottom line. Savings in lost inventory and reduced man hours are just a couple of the financial benefits to computerizing your warehousing operations.

Looking for more practical advice about warehouse management systems, including software for warehousing? Visit

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