Tag: 3PL Provider

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How 3PLs Empower DTC Brands to Scale Faster Pt 2

Third Party Logistics Provider for DTC (Direct to Consumer Ecommerce)

Direct-to-consumer (DTC) brands are rewriting the rules of retail—building loyal communities, controlling their messaging, and delivering curated experiences. But as orders grow and customer expectations rise, fulfillment becomes a bottleneck. That’s where third-party logistics (3PL) providers step in—not just as operational support, but as strategic accelerators. If you didn’t catch part one of this article you can find it here.

Four Key Benefits of 3PL Partnerships

Cost Reduction Through Operational Efficiency

3PL providers achieve economies of scale that individual brands cannot match. By consolidating shipments and leveraging established carrier relationships, they secure better shipping rates. Medallion Fulfillment’s bulk shipping agreements result in significant savings that we pass directly to our clients.

Storage optimization reduces warehousing costs through efficient space utilization and shared infrastructure. Instead of paying for dedicated warehouse space year-round, brands only pay for the storage they actually use.

Enhanced Focus on Core Business Activities

When logistics operations move to experienced 3PL providers, internal teams can redirect energy toward revenue-generating activities. Marketing campaigns, product development, customer service, and strategic partnerships all benefit from increased attention and resources.

This refocusing often accelerates growth beyond what improved fulfillment efficiency alone could achieve. Brands that outsource ecommerce fulfillment typically see faster product launch cycles and more aggressive market expansion.

Improved Customer Experience and Satisfaction

Professional 3PL operations deliver consistently superior customer experiences. Order accuracy rates typically exceed 99.8%, while shipping times often improve by 2-3 days compared to in-house operations.

Advanced tracking systems keep customers informed throughout the fulfillment process, reducing support inquiries and increasing satisfaction. When issues do arise, experienced 3PL teams resolve them quickly without involving brand resources.

Scalability Without Operational Complexity

3PL partnerships eliminate the need to forecast warehouse capacity, hire seasonal staff, or invest in additional fulfillment infrastructure. During peak seasons or promotional periods, your 3PL automatically scales operations to meet demand.

This flexibility proves especially valuable for DTC brands with seasonal products or those experiencing rapid, unpredictable growth. You can focus on driving sales without worrying about fulfillment capacity constraints.

Success Stories: DTC Brands That Scaled With 3PLs

Several household-name DTC brands have leveraged 3PL partnerships to achieve remarkable growth:

Warby Parker revolutionized eyewear retail through their direct-to-consumer model, but their success required efficient distribution to compete with traditional optical chains. Strategic 3PL partnerships enabled rapid geographic expansion while maintaining their distinctive customer experience.

Glossier built a devoted following around minimalist beauty products and community-driven marketing. As order volumes exploded, partnering with experienced 3PLs allowed them to maintain fast shipping and branded packaging without diverting resources from product development and customer engagement.

Allbirds gained popularity through sustainable footwear and transparent business practices. Their complex supply chain and global shipping requirements made 3PL partnerships essential for maintaining their ethical standards while scaling internationally.

Casper transformed the mattress industry with their bed-in-a-box concept, but shipping large, bulky products required specialized logistics expertise. 3PL partnerships enabled reliable delivery of their innovative packaging while supporting rapid market expansion.

Choosing the Right 3PL Partner

Success depends on selecting a 3PL provider that understands DTC brand needs and can grow alongside your business. Look for partners offering seamless technology integration, transparent pricing, and experience serving similar brands.

At Medallion Fulfillment, we specialize in supporting DTC brands through every growth stage. Our scalable services, strategic warehouse locations, and flat-rate fulfillment programs for startups provide the flexibility growing brands need. Whether you’re shipping 100 orders per month or 10,000 per day, our systems and expertise adapt to your requirements.

Transform Your Fulfillment Into a Competitive Advantage

The most successful DTC brands treat fulfillment as a strategic capability, not just an operational necessity. 3PL partnerships enable this transformation by providing professional operations, advanced technology, and scalable infrastructure—freeing you to focus on what you do best.

Don’t let fulfillment bottlenecks limit your growth potential. Contact Medallion Fulfillment today to start your third party logistics for ecommerce partnership and discover how professional fulfillment services can accelerate your DTC brand’s success.

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How to Choose the Right Apparel Fulfillment Center for Your Business

Apparel 3PL Provider and Fulfillment Center Options

When it comes to running a successful apparel business, logistics plays a pivotal role. Choosing the right third-party logistics (3PL) provider can make or break your operations, especially in an industry as dynamic and detail oriented as fashion. At Medallion Fulfillment and Logistics, we understand the challenges and nuances of apparel fulfillment better than anyone else. Here’s how you can choose the perfect 3PL partner to ensure your business thrives.

Understanding Apparel Fulfillment Challenges

Apparel fulfillment brings unique challenges that require precision and expertise to manage effectively. Unlike other products, clothing comes in diverse sizes, styles, and materials, which makes inventory management complex. Beyond inventory, specific packaging needs, such as hangers or foldable boxes, further complicate matters.

And let’s not forget about scalability. Apparel businesses thrive on seasonal demand, from summer collections to holiday promotions. A good 3PL must be flexible enough to handle these spikes without compromising efficiency or service quality.

Key Considerations When Choosing a 3PL

Here are the critical factors every apparel business should consider when evaluating 3PL providers:

1. Experience and Industry Expertise

Look for a 3PL provider with a proven track record in apparel fulfillment. Their knowledge of handling diverse apparel categories—from casualwear to accessories—is essential to navigating industry-specific challenges like sizing complexities, fashion seasonality, and returns processing.

2. Efficient Warehousing and Inventory Management

Apparel inventory requires careful organization and real-time tracking. Efficient warehousing ensures your products are stored securely and categorized neatly. Advanced inventory management systems that provide live updates and insights are a must-have to avoid stockouts or overstock situations.

3. Order Processing and Accuracy

Smooth order processing is a critical aspect of customer satisfaction. A reliable 3PL should offer automated systems that integrate seamlessly with your e-commerce platform, ensuring every order is fulfilled accurately and shipped on time.

4. Returns and Exchanges Handling

Returns and exchanges are inevitable in the apparel business. Your 3PL provider should have robust processes for inspecting returned items, restocking inventory, and processing refunds or replacements promptly. A seamless return experience can build customer loyalty.

Move Forward with Confidence in Your 3PL

Choosing the right 3PL partner is one of the most important decisions you’ll make for your apparel business. From managing inventory to scaling with seasonal demand, a reliable 3PL like Medallion Fulfillment and Logistics can streamline your operations, delight your customers, and drive your growth.

Get a Free 3PL Consultation today and see how we can take the hassle out of apparel fulfillment while helping your business reach new heights.

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Guide to Calculating Inventory Turns for Efficient Stock Management

Calculating Inventory Turnover Rate

Efficient inventory management is essential for small businesses and retail managers to maintain profitability and a smooth supply chain. One of the key metrics for achieving this is the inventory turnover ratio. It helps you understand how efficiently your stock is moving and when to replenish inventory, ultimately reducing holding costs and preventing stockouts. This guide walks you through calculating and interpreting inventory turnover and applying it to real-world scenarios.

Understanding Inventory Turnover Ratio

The inventory turnover ratio measures how many times a company sells and replaces its stock over a specific period, such as a year or a quarter. A high turnover ratio usually indicates good sales and efficient inventory management, whereas a low ratio could signal overstocking or slow-moving goods.

Formula for Inventory Turnover Ratio:

Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory

Example 1: Clothing Retailer

  • COGS = $160,000
  • Average Inventory = $20,000

Calculation:

Inventory Turnover Ratio = $160,000 / $20,000 = 8

This store replenishes stock 8 times per year, which balances fashion trends and steady sales.

Example 2: General Retail Business

  • COGS = $200,000
  • Average Inventory = $50,000

Calculation:

Inventory Turnover Ratio = $200,000 / $50,000 = 4

A lower turnover ratio indicates inventory moves only 4 times per year, suggesting room for optimization.

Calculating Inventory Turnover Rate (Days to Replenish)

The inventory turnover rate tells you how many days it takes, on average, to sell and replace your inventory. This insight helps in planning restocking schedules more effectively.

Formula for Inventory Turnover Rate:

Inventory Turnover Rate = Days in Period / (COGS / Average Inventory)

Example 1: Clothing Retailer

  • Days in Period = 90 (1 quarter)

Calculation:

90 / (160,000 / 20,000) = 90 / 8 = 11 days

The store’s inventory is replenished every 11 days, ideal for fast-moving fashion trends.

Example 2: General Retail Business

  • Days in Period = 365 (1 year)

Calculation:

365 / (200,000 / 50,000) = 365 / 4 = 91 days

This business takes 91 days to replenish inventory, which could lead to high holding costs if stock is not moving efficiently.

Interpreting and Applying Inventory Metrics

Here’s how business owners can use the inventory turnover ratio and rate to improve stock management:

  1. Optimize Reorder Schedules:

Align your restocking frequency with turnover rates to avoid stockouts and overstocking.

  1. Identify Poor-Performing Inventory:

Analyze low-turnover items to determine if they should be sold at a discount or replaced with faster-moving alternatives.

  1. Improve Cash Flow:

Faster inventory turnover minimizes holding costs and frees up cash flow for other operational needs.

  1. Tailor Inventory to Demand:

Use historical data to predict demand and adjust inventory accordingly. For example, a clothing retailer might stock less frequently for off-season items.

Why Inventory Turnover Matters

Efficient stock management is about striking a balance. A high inventory turnover ratio indicates your products are selling quickly, reducing costs associated with excess stock. A low ratio, on the other hand, may signal that your products are gathering dust.

By calculating and monitoring your inventory turnover, you stay proactive in identifying trends, optimizing supply chains, and responding to market demand. Whether you’re running a seasonal boutique or a bustling parts store, leveraging this insight ensures smoother operations and better profitability.

Final Thoughts

Managing inventory effectively is critical to the success of any retail business. By understanding how to calculate and interpret both the inventory turnover ratio and rate, you can make informed decisions that enhance efficiency and lessen costs. Start tracking your inventory metrics today and watch your business thrive.

Have questions about optimizing your inventory contact our team at Medallion Fulfillment & Logistics to get started.

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What is a 3PL?

What is a 3PL?

Unlocking the Benefits of a 3PL for eCommerce Fulfillment

The meteoric rise of eCommerce and virtual storefronts has made third-party logistics (3PL) a buzzworthy concept in the world of fulfillment services. Managing operations like warehousing, transportation, and order fulfillment can be challenging for small to mid-size online retailers. If you’re asking yourself whether outsourcing these tasks to a 3PL provider is right for your business, you’re not alone. This article highlights the key benefits of using a 3PL and why Medallion Fulfillment & Logistics should be your trusted partner.

What Is a 3PL?

At its core, a 3PL provider steps in to manage essential supply chain operations for your business. These services can include:

  • Warehousing for inventory storage
  • Order fulfillment that ensures accurate packing and shipping
  • Transportation and shipping brokerage to optimize freight and reduce costs
  • Supply chain strategy to streamline operations and meet customer expectations

Whether you need help with all of these functions or just one, a 3PL offers a way to offload operational complexity while maintaining control over your brand. Notably, 86% of Fortune 500 companies rely on 3PL providers for an average of three services, proving their immense value for businesses of all sizes.

Why Use a 3PL Provider for Shipping and Fulfillment?

If you’re an eCommerce business owner, fulfillment is likely one of your biggest expenses—not just in terms of finances but also in time and energy. Here’s why outsourcing to a 3PL like Medallion Fulfillment & Logistics could transform your operations:

  1. Focus on Growing Sales

Sales are the lifeblood of any business. Yet, without a 3PL, valuable time is often spent juggling inventory management, shipping logistics, and warehouse supervision. By outsourcing operations to a trusted 3PL provider, you can free yourself to focus entirely on scaling your sales and engaging customers.

  1. Cost-Effective Operations

Running your own warehouse and employing a logistics team is expensive—especially for small to mid-size businesses. Outsourcing allows you to cut costs on facility rentals, equipment, and staff salaries. Additionally, 3PLs can often negotiate significantly reduced shipping rates with carriers like FedEx or UPS, thanks to their high-volume shipments. These savings can be funneled back into growing your business.

  1. Meet Customer Delivery Expectations

Fast shipping is no longer optional. Same-day and next-day deliveries have become industry standards, and customers expect their orders to arrive quickly and reliably. With their established distribution networks, 3PLs like Medallion Fulfillment & Logistics ensure orders are delivered on time, no matter where your customers are located.

  1. Maintain Control Over Your Brand

Outsourcing doesn’t mean losing control. With a 3PL, you’re still the face of the company, managing branding, customer service, and the overall customer experience. The 3PL simply handles the behind-the-scenes logistics, working seamlessly to align with your business’s goals.

  1. Leverage Strategic Warehouse Locations

The location of your inventory impacts both delivery speed and shipping costs. With Medallion’s dual warehouses on the East Coast and West Coast, eCommerce providers can enjoy rapid shipping across the nation while lowering transit times. Storing inventory at both locations means reaching customers faster while cutting down on costs.

  1. 3PL Options for Every Business

You don’t need to be an enterprise company to reap the rewards of working with a 3PL. Even startups with limited resources can benefit. Medallion’s specially-designed flat-rate fulfillment program ensures that smaller businesses get access to professional logistics solutions without breaking the bank.

The Key Functions and Benefits of Partnering with a 3PL

Collaborating with a 3PL provider allows businesses to optimize their workflows in several ways:

  • Improved Efficiency: A 3PL handles the complexities of fulfillment, allowing you to operate more efficiently.
  • Scalability: Partnering with a 3PL makes it easier to scale your business operations during periods of growth.
  • Access to Technology: Advanced logistics platforms provided by 3PLs monitor inventory, automate processes, and increase transparency within your supply chain.
  • Expertise at Your Fingertips: Logistical expertise means fewer delivery delays, packaging errors, or inventory management hiccups.

Why Choose Medallion Fulfillment & Logistics?

With decades of experience in fulfillment, Medallion Fulfillment & Logistics differentiates itself not just with top-tier logistics services but also with a focus on customer satisfaction. Medallion stands out by:

  • Offering customized solutions for businesses of all sizes, including startups.
  • Maintaining a coast-to-coast warehouse network for nationwide shipping efficiency.
  • Providing a flat-rate startup program, making professional fulfillment accessible.
  • Enabling detailed shipment tracking and tasting notes to deliver a premium customer experience.

Medallion is committed to helping businesses like yours thrive in the competitive world of eCommerce, ensuring seamless fulfillment and unparalleled support.

Is a 3PL Right for Your Business?

Outsourcing fulfillment is about more than just saving time—it’s about setting your business up for long-term success. By partnering with a 3PL provider like Medallion Fulfillment & Logistics, you can streamline your processes, meet customer expectations, and remain focused on what you do best—selling great products.

Interested in taking the next step? At Medallion Fulfillment, we specialize in creating tailored solutions for eCommerce businesses. Contact us today to learn how we can make your operations more efficient and cost-effective.

Start building a stronger, faster, and smarter fulfillment operation with Medallion—because your business deserves the best.

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When to Hire a 3PL Provider for Your Business

3PL (3rd Party Logistics)

Managing logistics is one of the biggest challenges for small businesses and ecommerce brands. As your business grows, keeping up with order fulfillment, inventory, and shipping becomes increasingly complex and time-consuming. This is where a 3PL (Third-Party Logistics) provider can make all the difference.

But how do you know when it’s the right time to make the move and hire a fulfillment company? Below, we explore key signs and benefits of partnering with a 3PL to help you decide.

Recognizing Growth Challenges

If your business is growing rapidly, you may be struggling with increased order volumes, managing new market demands, or handling a growing list of SKUs. These are clear signs that your logistics operations have outgrown your internal capacity.

For instance, if you’re a small ecommerce business expanding internationally, managing customs, shipping, and returns can quickly become overwhelming. A 3PL has the systems, expertise, and scalability to take these burdens off your plate.

Cost Efficiency with a 3PL

Running in-house logistics can be expensive. From leasing warehouse space and hiring staff to investing in tech infrastructure, the costs add up fast. A 3PL provider allows you to benefit from economies of scale—such as reduced shipping rates and operational efficiencies—saving you time and money.

Imagine being able to allocate your budget toward your product development or marketing, instead of logistics overhead. This is one of the biggest advantages of hiring a fulfillment company.

Focus on Your Core Business

Logistics challenges don’t just drain your budget—they also steal your time. By outsourcing fulfillment to a 3PL provider, you can focus on what you do best, whether that’s developing products, marketing campaigns, or scaling your customer base.

With logistics in expert hands, you have more bandwidth to grow your business and strengthen your core operations.

Avoid Infrastructure Investments

Hiring a 3PL saves you from making large up-front investments in warehouse facilities, vehicles, and cutting-edge logistics technology. These resources are essential for smooth operations but are costly to set up and maintain.

By partnering with an experienced fulfillment company, you can access state-of-the-art infrastructure without the heavy financial commitment—and scale your operations without worrying about space or capability limitations.

Identifying Pain Points in Your Operations

Consider this checklist to determine if it’s time to hire a 3PL provider:

  • Are you consistently missing shipping deadlines or struggling with order accuracy?
  • Is your business expanding into new markets with different fulfillment requirements?
  • Are logistics eating into the time and resources needed for product development and marketing?
  • Are rising logistics costs cutting into your profit margins?

If you answered “yes” to most of these questions, bringing on a 3PL partner might be the solution you need.

Taking the Next Step

A partnership with our fulfillment company can transform your logistics operations, boosting efficiency, cutting costs, and giving you the room to grow. Assess your current logistics challenges and take an informed step toward finding the right 3PL provider for your business.

The right time to hire a 3PL is when your business is ready to focus on growth—not logistics roadblocks. Contact Medallion Fulfillment and Logistics Today.