3PLs and Material Handling Integration

Larry Townsley | 6 December 2023

When people hear the term 3PL, they might ask questions such as: “What is a 3PL?”

A 3PL or third-party logistics is a business that provides logistics operations to other business. These value-added logistic services include:

• Providing warehousing space.
• Managing product inventory.
• Controlling the fulfillment of inventory.
• Executing order fulfillment.
• Shipping finished orders to the customers. 

How Do 3PLs Work?

Manufacturers or retailers send their finished goods products to a 3PL warehouse for storage and handling. When an order comes in, it is picked, packaged and shipped to the customer or another distribution center.

Why Would a Manufacturer or Retailer Use a 3PL?

Maybe your company is out of warehouse space and isn’t able to expand the storage required for the inbound and outbound operations?

Maybe you want your finished goods placed in multiple distribution centers throughout a region to be closer to your clients?

Maybe a 3PL provide fits your business model better than owning and operating your own distribution center?

No matter how large or small, 3PL’s offer companies warehousing services options that help them manage their logistics operations. The supply chain operation can be very complex both internally and operationally to manage, so outsourcing services such as transportation, freight, inventory management/dispatch, and technology integration can be cost effective and a better customer experience for their end buyer.

3PLs Offer Flexibility and Experience

3PLs and their material handling integration partners understand product lines and volumes are forever changing according to market demands.

Which is why, when a system is engineered, it is done so with flexibility and scalability in mind. The anticipation of larger or smaller product volumes to be put through at peak season for example, is one area, 3PLs are particularly good for.

Handling multiple customers with multiple carton/polybag sizes to handle, multiple pallet load sizes, and omni channel distribution all under one roof, is another aspect 3PLs are very experienced in.

Whether you need a place to put products for a 3-month surge in order fulfillment, or a 10-year contract, working with a 3PL and a trusted supply chain integration partner can position your operations for optimal performance.

3PL Technology Developments

Back in the 1980’s when the 3PLs became popular, material handling was primarily a manual process. Customer orders mostly written by hand and processed by hand.

The 1990’s introduced more fork trucks, racking and conveyor lines for case handling.

With the introduction of ecommerce and the increase in small and midsized online-only retailers from the 2000s to now, the 3PL business model has steadily increased.    

As the 3PL market has expanded, so did the automation technology 3PL’s are able to offer their clients.

Today, to provide their customers same day, next day, or two-day shipping times, 3PLs and their integration partners utilize advanced technologies such as:

• AS/RS (i.e., shuttles, grid-based storage systems, pallet handling systems)
• Conveyor sortation
• Robotics sortation, picking, pallet handling and document insertion.
• Auto print & apply
• Auto carton erection and lidding
• Auto carton tapers
• Automated packaging solutions
• AMRs (autonomous mobile robots) & AGVs (automated guided vehicles)
• Goods to person
• Unit sortation

3PLS and Material Handling Integration Providers

Technology is only as good as the system it was engineered to be used in. With our 70-year history as a material handling integration partner, Bastian Solutions uses our industry knowledge to give you the guidance and experience you need to plan, implement and automate while factoring in future dynamic growth in your 3PL operations.

Given its humble beginnings of mainly manual operations, 3PLs today can implement advanced automation technology that are cost-efficient, productive, and flexible. Outsourcing operation and logistics including inventory management, picking and packing orders, transportation management and freight to an experienced 3PL, can speed up your timeframe for upgrading your warehouse fulfilment.

Finding the right solutions to help you achieve your goals starts with thoroughly analyzing your current operations. Our brand-agnostic philosophy means we evaluate technologies based on their ability to meet your needs and adapt to your future goals, without bias. The result is an efficient, responsive operation that gets products to the customers faster, elevating your 3PL capabilities.

Author: Larry Townsley