How To

Use Third-Party Logistics

Cyle Obermeyer, founder, co-owner and chief operating officer of PARCEL iT, shares tips and advice on how to best work with a third-party logistics (3PL) provider.

About This Recipe

Between a customer placing an order online and receiving the product, many moving parts have to fall into place. From picking and packing to engaging with the right courier for the job, the process has to run smoothly to ensure a happy customer. As a startup you can - and should - do all this yourself, but when growth overtakes your capacity, it’s time to partner with a professional 3PL partner.

In this recipe, Cyle Obermeyer, founder, co-owner and chief operating officer of PARCEL iT, explains how to prepare yourself and your business for such a partnership, factors that influence 3PL costs and what to look out for when negotiating a contract.

Cyle also unpacks the metrics to measure, why the 3PL’s tech capabilities matter and what is involved in building and maintaining strong relationships.

Cover These 10 Steps

Step 1: Assess Your Needs
Step 2: Research 3PL Providers
Step 3: Evaluate Costs
Step 4: Negotiate Contracts
Step 5: Define Performance Metrics
Step 6: Integrate Systems
Step 7: Establish Communication Protocols
Step 8: Monitor Performance
Step 9: Maintain Relationships
Step 10: Review Regularly

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In these challenges, use your newfound knowledge to identify how to incorporate third party logistics into your business.

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Learn:

Watch Cyle's bites on how to use 3PL.

Do:

Apply the knowledge from each of the ten steps to help you integrate successful third-party logistics into your business.

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Who Is Our Heavy Chef?

Co-founder and chief operating officer of PARCEL iT Fulfilment Solutions, Cyle Obermeyer was born, bred and educated in Gauteng. After 15 years in the IT industry - the latter half of which focused on the Internet of Things - he recognised a gap in the market for providing small to medium-sized e-commerce businesses with a cost-effective and personalised logistics service. The result was Parcel iT, the 3PL company Cyle founded with Alex Schmitt.

The partners’ current goal is to become South Africa’s number one e-commerce and online marketplace fulfilment centre for small to large B2C and B2B retailers. With around 60 online stores on their client list already, the goal is certainly being realised.

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