3 Ways to Size Up 3PLs for Apparel Fulfillment

Ambitious fashion brands must consider the channels they use carefully. They can’t rely on physical retail alone to drive growth. Pure-play online, equally, comes with limitations. Thus, apparel startups should weigh their omnichannel strategy and begin to size up 3PLs they need to reduce fulfillment complications.

It’s easy enough to handle fulfillment in a boutique shop. However, eCommerce has flipped the script. For example, Amazon this year was expected to overtake Macy’s as the biggest fashion provider in America. Customers obviously still shop in stores, but they buy more and more online. Meanwhile, brick-and-mortar has become more of a showroom proposition. Customers already treat physical retail to try on clothes, not necessarily to complete a purchase.

So, for young fashion brands, the question becomes: what is the best way to structure the supply chain? How much inventory does one hold in the stockroom? Is it more cost-effective to spend directly on warehouse space, or is it better to go with a 3PL? And if outsourcing is the better option, how does one size up 3PLs for warehousing stock and helping with order fulfillment?

Size Up 3PLs to For the Right Fit

Shopping around for a 3PL means doing your homework. Aside from cursory online research and peer recommendations,  some experts recommend hiring a logistics consultant to help find a logistics partner that suits your business needs. This qualification goes both ways. On the one hand, you may need a 3PL with expertise in apparel supply chains. On the other hand, some 3PLs may require a minimum number of orders per month or SKUs before they’ll do business with you.

Size Up 3PLs for Apparel Expertise

Third-party logistics is a broad term, so it shouldn’t be a surprise that one size does not fit all. In fact, 3PLs do distinguish themselves by capitalizing on experience in particular areas, including verticals. Some 3PLs market themselves outright as having specific expertise in the fashion industry. They may specialize in domestic warehousing and courier services for hanging garments, or they may highlight their import/export, customs clearance, and fashion distribution networks.

Size Up 3PLs For Handling Returns

If you’re a pure-play online or omnichannel fashion brand, handling returns can be tricky. It’s vital to develop a plan early on for handling returns or reverse logistics, regardless of the channel you use. Some channels make this easier than others. For example, when an Amazon Seller uses FBA, the company’s branded logistics service, returns are part of the package. Selling through your own eCommerce website requires a plan and a method to handle returns. Among the many questions, companies should ask when they size up 3PLs for apparel is if that is one of their areas of expertise.

These are, of course, broad guidelines. Individual apparel providers will likely have many more questions to ask based on their unique supply chain. Whether or not this includes outsourcing to 3PLs, it is imperative for theses businesses to maintain enough control to keep costs down in the store, warehouse, and online.