For a long time, outsourcing fulfillment meant finding someone to store your inventory, pick and pack orders, and get them out the door. Today, businesses need much more from their logistics partner.
A third-party logistics (3PL) provider manages outsourced logistics functions such as warehousing, inventory management, order fulfillment, shipping and returns. Today's 3PLs can also support DTC fulfillment, B2B and retail distribution, technology integrations, freight, reporting and value-added services.
Whether you're a growing ecommerce brand, educational publisher, nonprofit or ministry, your 3PL should do more than ship boxes. It should make your operation easier to manage, give you better visibility and provide the flexibility to grow.
1. Support for DTC, B2B and Retail
Your fulfillment needs today may look very different a few years from now.
A growing ecommerce business might start primarily with direct-to-consumer (DTC) orders before expanding into wholesale, retail, Amazon or other marketplaces. Nonprofits and ministries may need to fulfill individual orders while also shipping publications, event materials, kits or larger quantities to organizations across the country.
Each channel comes with its own requirements.
DTC fulfillment is typically focused on speed, accuracy and the individual customer experience. B2B and retail distribution can introduce routing guides, EDI requirements, ASNs, labeling, palletization, compliance standards and LTL freight.
Working with a 3PL that understands multiple channels allows your business to grow without having to build a separate fulfillment solution every time something changes.
2. Technology and Visibility Into Your Operation
Fulfillment outsourcing shouldn't mean losing visibility or control.
Your 3PL should connect with the systems you already use and give your team access to the information needed to manage your operation. That can include integrations with ecommerce platforms, marketplaces and ERP systems such as Shopify, Amazon, NetSuite and WooCommerce.
PBD supports more than 100 integrations, helping connect fulfillment operations with the technology businesses already use.
Just as important is what happens after those systems are connected.
Can you see inventory and order activity in real time? Can your team pull its own reports? Can reports be scheduled automatically? Can you easily monitor the information that matters to your business?
The goal isn't simply having more technology. It's using technology to make fulfillment easier to manage and giving your team the information it needs without waiting on someone else to provide it.
3. A Smarter Approach to Shipping
Shipping is one of the largest costs associated with fulfillment, so getting an order out the door is only part of the job.
Where inventory is located, which carrier is used, how an order is packaged and whether it ships parcel, LTL or FTL can all affect cost and delivery time.
A 3PL with a broader distribution network can help position inventory closer to customers, shorten transit times and create more options as your shipping needs change.
PBD operates five U.S. fulfillment centers across the Atlanta, Chicago, Washington, D.C. and Las Vegas markets. This nationwide fulfillment network allows inventory to be positioned closer to customers, helping reduce shipping costs and transit times while reaching most U.S. markets within 1–2 days via ground service.
Your provider should also understand the different shipping requirements of a five-pound DTC package, a multi-box order and a pallet headed to a retailer. As volume grows, these shipping decisions can have a significant impact on the bottom line.
A good logistics partner should help you think about the entire journey from your inventory arriving at the warehouse through delivery to the final destination, not simply what happens inside the four walls of the fulfillment center.
4. Value-Added Services for the Orders That Aren't So Simple
Not every order involves taking one product off a shelf and putting it in a box. Different products and industries can bring very different fulfillment requirements.
Ecommerce brands may need kitting, custom packaging, subscription fulfillment or returns processing. Retail programs can require labeling, routing guide compliance and special preparation. Nonprofits, associations and ministries may ship publications, member materials, kits, event materials or donor packages. Educational publishers need packaging designed to protect books and materials from damage throughout the shipping process.
The right equipment can make a difference, too. At PBD, for example, our automated packaging system creates packaging sized specifically to the product, helping protect books and other materials in transit while reducing excess packaging.
As fulfillment becomes more complex, having these value-added and distribution services available through the same 3PL can eliminate the need to coordinate multiple vendors, systems and inventory locations.
Look for a provider that already has the processes and capabilities to handle the details that make your operation unique, rather than one that can only accommodate a standard pick-and-pack model.
5. Experienced People Who Know Your Business
Technology can provide information and automate processes, but fulfillment still depends heavily on the people behind it.
When evaluating a 3PL, look beyond warehouse space and technology and ask about the team running the operation. How long do employees typically stay? Are warehouse teams cross-trained? How much experience does the leadership team have? And when an issue comes up, will you have someone who already understands your business?
Employee tenure can make a real difference in fulfillment. Experienced, cross-trained teams understand processes, client requirements and the details that can be difficult to replicate when an operation relies heavily on temporary or frequently changing staff.
This becomes especially important during peak seasons. Order volume can change significantly throughout the year, and relying heavily on temporary labor can introduce challenges with training, productivity and accuracy. A 3PL with a diverse client portfolio and peak seasons that occur at different times throughout the year can cross-train experienced employees across operations and deploy them where they're needed most.
At PBD, our employees average 10.3 years with the company. For comparison, the U.S. Bureau of Labor Statistics reported median employee tenure of 3.4 years in the transportation and warehousing sector in 2024. PBD's executive leadership team averages more than 20 years with the company. That continuity creates institutional knowledge throughout the organization and gives clients access to experienced people who have spent years solving fulfillment and distribution challenges.
The relationship with your 3PL matters, too. You shouldn't have to start from the beginning every time you have a question or an unexpected situation arises. Look for a partner with clear points of contact and people who take the time to understand your operation, priorities and goals.
The warehouse and technology are important, but ultimately, it's the people behind them who keep your operation moving.
Source: U.S. Bureau of Labor Statistics, Employee Tenure in 2024.
6. The Ability to Grow Without Starting Over
Scalability is one of the biggest reasons businesses consider third-party logistics, but scalability means more than having extra warehouse space.
Growth can mean needing more warehouse capacity, higher order fulfillment volume, additional SKUs, new sales channels, retail expansion or more complicated shipping requirements.
Your fulfillment operation should be able to adjust without requiring you to find a new solution every time your business reaches its next stage.
That requires the right combination of warehouse capacity, technology, shipping options, processes and experienced people.
When those pieces are already in place, your 3PL can become part of your growth strategy rather than something your business eventually outgrows.
Your 3PL Should Do More Than Ship Orders
Warehousing, picking, packing and shipping will always be at the core of third-party logistics. But the value of the right 3PL goes well beyond getting packages out the door.
The strongest logistics operations bring fulfillment, distribution, technology, shipping capabilities and experienced support together, giving businesses greater visibility and more flexibility as their needs change.
For 50 years, PBD Worldwide has helped businesses and organizations manage their evolving fulfillment and distribution needs. Today, we support DTC and B2B fulfillment through five U.S. fulfillment centers across the Atlanta, Chicago, Washington, D.C. and Las Vegas markets, along with technology integrations, shipping solutions, value-added services and dedicated client support.
Looking for more from your fulfillment operation? Talk to our team about how PBD can help.
Frequently Asked Questions About Third-Party Logistics (3PL)
What does a 3PL company do?
A third-party logistics company manages outsourced logistics services such as warehousing, inventory management, order fulfillment, shipping and returns. Many 3PLs also provide B2B distribution, retail fulfillment, technology integrations, freight management and value-added services.
Can a 3PL handle both DTC and B2B fulfillment?
Yes, but not every provider specializes in both. DTC fulfillment typically involves individual parcel orders, while B2B and retail distribution may require EDI, routing guide compliance, ASNs, palletization and freight shipping. Businesses that operate across multiple channels should look for a 3PL experienced in both DTC and B2B fulfillment.
What are the benefits of using multiple fulfillment centers?
A multi-location fulfillment network allows inventory to be positioned closer to customers. This can reduce shipping zones and transportation costs while shortening delivery times. Multiple fulfillment locations can also provide businesses with greater flexibility as order volume and geographic reach grow.
What should I look for in a 3PL partner?
Look beyond warehouse space and fulfillment rates. Consider the provider's technology and integrations, fulfillment network, DTC and B2B capabilities, shipping options, value-added services, employee experience, reporting, customer support and ability to scale with your business.
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