Happy Orchard Insights
By Happy Orchard
•
15 Dec, 2021
Partnering with a third-party logistics (3PL) provider can help your company increase efficiency, control costs, stabilize your supply chain, and improve customer service. But, with so many 3PL options available, choosing the best fit can be overwhelming. Whether you are looking to outsource logistics for the first time or looking to replace a provider who hasn’t met your needs, take the time to review the following considerations. What is 3PL? 3PL stands for Third-Party Logistics, and the official definition (provided by the Consumer Product Safety Improvement Act ) is, “a person who solely receives, holds or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.” More simply, a 3PL provider ships, receives, stores, and/or distributes your product, but ownership of the product remains with you. While 3PL was originally limited to transporting and storing goods, today the 3PL industry spans a full range of logistical services from procurement to fulfillment. What to Look For in a 3PL Provider Range of Services What kind of services do you need? Outsource your needs to a single provider for a simpler and more scalable 3PL solution. Whether you need warehousing, bulk ingredients , custom portioning , kitting and assembly , private label packaging , order fulfillment , or any number of other logistical services, be sure your 3PL provider has the logistical capability to meet all of your needs with excellence. Experience and Stability Logistics is a constantly changing industry, so a 3PL provider that has been in business a long time is a good indication of its ability to provide high quality logistics and supply chain management services to its partners. Look for a 3PL provider with years of stability and a reputation for providing exceptional service. Safety and Compliance Be sure to find a 3PL provider who meets or exceeds all safety compliance measures in your industry. For example, in the food ecommerce space, an SQF-certified facility is a must-have, as well as cold-chain and ambient packaging spaces optimized for food handling. Responsiveness and Customer Service The ability to identify issues and resolve problems with speed and accuracy is essential in a 3PL provider. This responsiveness and quality of service should extend to both the manufacturer as well as the brand and its customers. The right 3PL will understand your company’s unique needs and work to empower your brand. Accuracy A 3PL provider’s internal processes will ultimately determine inventory accuracy, shipping accuracy, and order accuracy. When any of these fail, customers will be disappointed, which is a reflection on your brand. Ask a potential 3PL partner about their internal processes and accuracy rates, and don’t settle for less than excellence. Scalability Will your 3PL pr ovider make scaling easier? If you are already operating at scale, can your 3PL handle the volume? Do not want to outsource to a provider that cannot scale quickly and efficiently. Customization A 3PL provider should be able to act as an invisible extension of your brand. This will require different specifics depending on your company, but look for private label options and other customizable solutions for a seamless customer experience. The right 3PL provider will help your company scale, expand reach, improve efficiencies, and increase flexibility. If you are considering 3PL, we would love to hear from you. At Happy Orchard, food is our specialty, and our state of the art, fully automated, SQF-certified facility means we are poised with white glove service that is ready to be your 3PL one-stop shop. Give us a call or drop us a line today to see how we can help you fulfill your goals.
By Happy Orchard
•
15 Nov, 2021
You have likely heard 3PL lingo being tossed around if you are anywhere close to the world of ecommerce, and especially if you are a small business owner. Co-packer, co-manufacturing, co-man, private label…what does it all mean, and how do you know when your business could use it? Co-Manufacturer vs Co-Packer Co-manufacturer (or co-man) is short for contract manufacturer, and co-packer is short for contract packer. Both terms refer to a facility that either manufactures your product line or receives your finished product in bulk and packages it for you. Co-packing and co-manufacturing are commonly used when the producing company doesn’t have the packing capacity, machinery, skills, or knowledge required to meet demand or to scale efficiently. A co-packer is similar to a co-manufacturer in most industries, and in the food business, the terms can be used interchangeably (although you’ll hear co-packer most often). A co-packer works under contract with your company to manufacture your food product as though it was manufactured directly by your company. Co-packing is critical for businesses that need help scaling, and outsourcing to a co-packer offers a greater-than-average advantage to companies in the food industry. This is thanks to the abundant opportunities for operational efficiencies in food production. Co-packing and co-manufacturing enable a food company to lower its production costs while maintaining production quality and increasing profit margins. How, exactly? Outsourcing to a co-packer allows you to grow to meet a larger demand without investing in your own equipment. Additionally, a good co-packer will have relationships with raw material suppliers and methods of efficiency at scale within their production, including automation. Because co-packers and manufacturers produce for and service multiple customers, they can offer better pricing by acquiring bulk ingredients, allowing your company to benefit from economies of scale. Co-packer vs Private Labeling Under a co-packing agreement, the hiring company owns the rights to a proprietary formulation, and the co-manufacturer/co-packer creates the product. Under this type of agreement, the co-packer typically signs a non-disclosure agreement that prevents proprietary information from being shared (or from being used to create any additional product outside of the agreement). Under a private labeling agreement, the food manufacturer produces its own formulation and then packages it under the customer’s brand label. Under this type of agreement, the food manufacturer owns the proprietary rights to the actual product. However, in some cases, the food manufacturer will work with a customer to formulate and produce something that is exclusive to that customer’s private label. In both types of agreements, the products are manufactured by the co-packer/manufacturer and distributed under the customer’s brand; the distinguishing factor is who owns the proprietary formula after the contract is fulfilled. Co-packing vs 3PL The difference between co-packing and 3PL (Third-Party Logistics) mainly comes down to the services offered by the provider. A co-packer will primarily focus on manufacturing and packaging; when you work with a 3PL, you can outsource your supply chain, logistics, assembly, and fulfillment. It’s wise to think through co-packing vs 3PL with an eye on the future. Consider your anticipated growth and choose a provider that has the capabilities to handle increased demand. This will save you from the disruption of having to change companies later. Look for a 3PL one-stop shop like Happy Orchard that can help you scale efficiently and stay ahead of increasing demand. When is it time to start using Third-Party Logistics for your business? The short answer is before your business is overwhelmed with growth. It can be difficult to nail down when to make that shift, though, especially if you haven’t considered an alternative to in-house logistics before. But, if managing logistics is preventing you from growing your business, it’s time to look into 3PL providers. Are you bogged down with order fulfillment? Are you running out of storage space? Would you be crushed by a sustained spike in demand? Do you have more great ideas but just don’t know how to make them at large scale? A quality 3PL provider will be positioned for exactly these scenarios. Happy Orchard is a trusted 3PL one-stop shop, offering bulk ingredients, co-packing and co-manufacturing, private labeling and more in our state-of-the-art, automated facility supported by top notch customer care and white glove service. Give us a call for more information or request a quote today.
By Happy Orchard
•
15 Dec, 2021
Partnering with a third-party logistics (3PL) provider can help your company increase efficiency, control costs, stabilize your supply chain, and improve customer service. But, with so many 3PL options available, choosing the best fit can be overwhelming. Whether you are looking to outsource logistics for the first time or looking to replace a provider who hasn’t met your needs, take the time to review the following considerations. What is 3PL? 3PL stands for Third-Party Logistics, and the official definition (provided by the Consumer Product Safety Improvement Act ) is, “a person who solely receives, holds or otherwise transports a consumer product in the ordinary course of business but who does not take title to the product.” More simply, a 3PL provider ships, receives, stores, and/or distributes your product, but ownership of the product remains with you. While 3PL was originally limited to transporting and storing goods, today the 3PL industry spans a full range of logistical services from procurement to fulfillment. What to Look For in a 3PL Provider Range of Services What kind of services do you need? Outsource your needs to a single provider for a simpler and more scalable 3PL solution. Whether you need warehousing, bulk ingredients , custom portioning , kitting and assembly , private label packaging , order fulfillment , or any number of other logistical services, be sure your 3PL provider has the logistical capability to meet all of your needs with excellence. Experience and Stability Logistics is a constantly changing industry, so a 3PL provider that has been in business a long time is a good indication of its ability to provide high quality logistics and supply chain management services to its partners. Look for a 3PL provider with years of stability and a reputation for providing exceptional service. Safety and Compliance Be sure to find a 3PL provider who meets or exceeds all safety compliance measures in your industry. For example, in the food ecommerce space, an SQF-certified facility is a must-have, as well as cold-chain and ambient packaging spaces optimized for food handling. Responsiveness and Customer Service The ability to identify issues and resolve problems with speed and accuracy is essential in a 3PL provider. This responsiveness and quality of service should extend to both the manufacturer as well as the brand and its customers. The right 3PL will understand your company’s unique needs and work to empower your brand. Accuracy A 3PL provider’s internal processes will ultimately determine inventory accuracy, shipping accuracy, and order accuracy. When any of these fail, customers will be disappointed, which is a reflection on your brand. Ask a potential 3PL partner about their internal processes and accuracy rates, and don’t settle for less than excellence. Scalability Will your 3PL pr ovider make scaling easier? If you are already operating at scale, can your 3PL handle the volume? Do not want to outsource to a provider that cannot scale quickly and efficiently. Customization A 3PL provider should be able to act as an invisible extension of your brand. This will require different specifics depending on your company, but look for private label options and other customizable solutions for a seamless customer experience. The right 3PL provider will help your company scale, expand reach, improve efficiencies, and increase flexibility. If you are considering 3PL, we would love to hear from you. At Happy Orchard, food is our specialty, and our state of the art, fully automated, SQF-certified facility means we are poised with white glove service that is ready to be your 3PL one-stop shop. Give us a call or drop us a line today to see how we can help you fulfill your goals.
By Happy Orchard
•
15 Nov, 2021
You have likely heard 3PL lingo being tossed around if you are anywhere close to the world of ecommerce, and especially if you are a small business owner. Co-packer, co-manufacturing, co-man, private label…what does it all mean, and how do you know when your business could use it? Co-Manufacturer vs Co-Packer Co-manufacturer (or co-man) is short for contract manufacturer, and co-packer is short for contract packer. Both terms refer to a facility that either manufactures your product line or receives your finished product in bulk and packages it for you. Co-packing and co-manufacturing are commonly used when the producing company doesn’t have the packing capacity, machinery, skills, or knowledge required to meet demand or to scale efficiently. A co-packer is similar to a co-manufacturer in most industries, and in the food business, the terms can be used interchangeably (although you’ll hear co-packer most often). A co-packer works under contract with your company to manufacture your food product as though it was manufactured directly by your company. Co-packing is critical for businesses that need help scaling, and outsourcing to a co-packer offers a greater-than-average advantage to companies in the food industry. This is thanks to the abundant opportunities for operational efficiencies in food production. Co-packing and co-manufacturing enable a food company to lower its production costs while maintaining production quality and increasing profit margins. How, exactly? Outsourcing to a co-packer allows you to grow to meet a larger demand without investing in your own equipment. Additionally, a good co-packer will have relationships with raw material suppliers and methods of efficiency at scale within their production, including automation. Because co-packers and manufacturers produce for and service multiple customers, they can offer better pricing by acquiring bulk ingredients, allowing your company to benefit from economies of scale. Co-packer vs Private Labeling Under a co-packing agreement, the hiring company owns the rights to a proprietary formulation, and the co-manufacturer/co-packer creates the product. Under this type of agreement, the co-packer typically signs a non-disclosure agreement that prevents proprietary information from being shared (or from being used to create any additional product outside of the agreement). Under a private labeling agreement, the food manufacturer produces its own formulation and then packages it under the customer’s brand label. Under this type of agreement, the food manufacturer owns the proprietary rights to the actual product. However, in some cases, the food manufacturer will work with a customer to formulate and produce something that is exclusive to that customer’s private label. In both types of agreements, the products are manufactured by the co-packer/manufacturer and distributed under the customer’s brand; the distinguishing factor is who owns the proprietary formula after the contract is fulfilled. Co-packing vs 3PL The difference between co-packing and 3PL (Third-Party Logistics) mainly comes down to the services offered by the provider. A co-packer will primarily focus on manufacturing and packaging; when you work with a 3PL, you can outsource your supply chain, logistics, assembly, and fulfillment. It’s wise to think through co-packing vs 3PL with an eye on the future. Consider your anticipated growth and choose a provider that has the capabilities to handle increased demand. This will save you from the disruption of having to change companies later. Look for a 3PL one-stop shop like Happy Orchard that can help you scale efficiently and stay ahead of increasing demand. When is it time to start using Third-Party Logistics for your business? The short answer is before your business is overwhelmed with growth. It can be difficult to nail down when to make that shift, though, especially if you haven’t considered an alternative to in-house logistics before. But, if managing logistics is preventing you from growing your business, it’s time to look into 3PL providers. Are you bogged down with order fulfillment? Are you running out of storage space? Would you be crushed by a sustained spike in demand? Do you have more great ideas but just don’t know how to make them at large scale? A quality 3PL provider will be positioned for exactly these scenarios. Happy Orchard is a trusted 3PL one-stop shop, offering bulk ingredients, co-packing and co-manufacturing, private labeling and more in our state-of-the-art, automated facility supported by top notch customer care and white glove service. Give us a call for more information or request a quote today.
