Customers prioritize receiving their orders securely, accurately, and on time, which makes choosing the right 3PL warehousing and fulfillment services crucial for businesses. This article highlights top 3PL service providers in Canada, offering an overview of their strengths and weaknesses to help businesses make informed decisions. Key players today include MacMillan Supply Chain Group, Ship Bob, Ship fusion, Fulfillment by Amazon (FBA), Ship Hero, and Ship Network, each catering to different businesses.
This article emphasizes the importance of understanding specific business requirements and evaluating potential 3PL partners based on metrics like accuracy, strategic locations, and transparent pricing models. By conducting market research and assessing these factors we have elaborated the potential logistic partners for your business, to enhance your logistics operations and meet customer expectations effectively.
To achieve this, it’s vital to assess and compare top 3PL warehousing companies operating in Canada. However, finding the ideal partner can be a challenging task. This article aims to outline some of the leading warehousing and fulfillment services that are available today.
Here is a list of top 3PL’s in Canada 2024
MacMillan Supply Chain Group is providing scalable 3pl solutions to business, offering warehousing, last mile fulfillment and innovative ecommerce solutions customized to your needs.
Ship Bob is well-suited for small to medium-sized ecommerce enterprises that ship parcels of small to medium sizes. Operations including a 50-pound parcel weight limit, minimum order volume is none which can be a source for companies with larger volumes and error rate of 0.05%.
Ship Fusion is most suitable for sensitive cargo and FDA-compliant, food-grade inventory storage, such as cold chain transportation systems. Operating with a 50-pound product/parcel weight limit, minimum order volume of 500+ and an error rate of 0.2%.
Fulfillment by Amazon FBA is a dedicated shipping and order fulfillment company for Amazon sellers with its optimized programs. FBA orders are eligible for prime order fulfilment, to get more insight read out article on Amazon’s seller fulfilled prime. Moreover, FBA has a parcel weight limit of 50- pounds, minimum order volume is none while the error rates remain undisclosed.
Ship Hero: is a top ecommerce solution provider for enterprise level with a monthly shipment to SKU ratio of 10:1, cost-effective, and efficient deliveries. Operating with a parcel weight limit of 20- pounds and a minimum order volume of 10,000, while Ship hero offers a 1% error rate.
Ship Network is ideal for large volume orders for enterprise level shippers working for optimized solutions. Operational with a parcel weight limit of 30- pound, minimum order volume rates to be 250 and above and an error rate of 0.1%.
How to Analyze the best 3PL services for your company?
Finding the right 3PL warehousing company isn’t a one-size-fits-all situation. Your ideal partner depends on your unique business needs. Here’s how to navigate the options.
A good place to start is by investigating your current business operations and goals, Ask yourself the following questions:
This isn’t an exhaustive list, but it gives you a good starting point to understand your specific requirements which can be important while selecting your right 3PL partner.
What factors to consider while selecting a 3PL partner?
Once you know your business needs, explore the different services offered by the top 3pl companies and consider factors when determining the quality of service provided by a third-party logistic provider. Compare various metrices such as:
- Product Weight Limits: Can the company handle the size, weight, and any special storage requirements of your products?
- Order Volume: Do they have minimum order requirements that fit your current and projected sales volume?
- Accuracy Rates: How does their accuracy rate measure up?
- Strategic Geographic Locations: Does their network of fulfillment centers align with your target markets for faster delivery times? Presence in GTA and Western Region access to networks?
- SKU Management: Do they have limitations on the number of products (SKUs) you can store with the 3PL company?
- Customer satisfaction: Is direct feedback taken from the customers associated with the 3PL provider?
- Transparency in pricing models: Is the 3PL provider clear about costs with no hidden charges and is the model competitive in terms of other logistics providers such as Red Stag fulfillment?
PRODUCT WEIGHT LIMITS:
HOW LARGE ARE YOUR PRODUCTS?
Businesses selling bulkier items, finding 3pl services with the right expertise is crucial. This ensures your products are safely stored, picked, packed, and shipped to arrive in pristine condition. Beyond size, some products may require specialized handling. The best 3pl providers such as MacMillan supply chain group operating as a cost leader in Canada can accommodate these needs with appropriate warehouse space and properly sized boxes while proving to be a cultural fit for your company’s operations.
ORDER VOLUME:
WHAT IS THE RATE OF PACKAGES SHIPPED EACH MONTH?
If you consistently ship a large number of products monthly, prioritize warehousing services equipped to handle that volume efficiently. Conversely, if your order volume is currently lower, look for fulfillment services specifically designed for businesses like yours. If you’re aiming for rapid expansion, choose a 3pl service that can handle your current volume while offering the flexibility to scale alongside you and your seasonal space requirements.
ACCURACY RATE:
WHAT IS THE PERCENTAGE OF ACCURATE SHIPMENTS?
Knowing that every mishap costs your business money and potentially harms customer satisfaction, be sure to ask potential 3pl partners their errors. Some fulfillment service providers allow up to a 4% error rate. But, the best order 3pl companies such as MacMillan boast an accuracy rate of 99% or higher with their responsiveness and their track record of meeting when problems arise with the lowest percentage rate of damage turn over.
STRATEGIC GRAPHIC LOCATIONS:
TOP WAREHOUSES ARE STRATEGICLY LOCATED FOR FAST SHIPPING
Macmillan’s Presence in GTA allows full geographic coverage and also offers 80% access to Western Regions. Physical warehouse locations are important because they show how quickly your customers will receive their orders. Based on your unique needs, find a third-party logistics company with warehouses in strategic locations that can get items out to your customers quickly, reliably, and with optimized and scalable shipping costs.
- Cost associated with warehouse locations: Spreading your inventory across multiple 3pl warehouses can be complex, there will be additional costs to ship inventory to each location, and you’ll need to carefully track inventory levels at each warehouse to avoid stockouts. However, the potential cost savings from using fulfillment centers closer to your customers can be significant, especially if they are offering free shipping.
SKU MANAGEMNT:
HOW MANY UNIQUE SKUs DO YOU SELL?
SKU breadth is the ratio of how many different items you sell to the number of customer orders you ship each month. Some fulfillment services have a minimum SKU-to-order ratio they allow.
Questions to ask your potential 3PL partner
Ask your potential 3PL partner the following questions to verify if their logistics services best fit your warehousing needs.
- Can you handle reverse logistics?
- What shipping carriers do you use?
- Do you offer real-time insights into inventory tracking?
- Do you entertain site visits?
- How do you handle customer support?
- Is your pricing model transparent?
MacMillan SCG as a 3PL provider:
Hopefully now you have evaluated the list of top 3pl services provider in Canada based on your company size, order volume and shipment frequency. Have a look at the following scales to help you choose in accordance to your requirements.
- Product weight limit: 50- pound
- Order volume: Varies depending on the client, Reach out for more information
- Error rates: less than >0.02
- Strategic geographic Locations: Presence in GTA and Western Region access to 80% Whether the network aligns with your target markets and shipping destinations.
- Customer satisfaction: Direct customer feedback and tracking is provided.
- Transparency in pricing models: No hidden or additional chargers outside the pricing model at MacMillan SCG, contact us for further details.
Key Takeaways
In conclusion, selecting the right 3PL services and fulfillment partner is an investment in customer satisfaction. By understanding your specific business needs and comparing 3PL providers on key metrics mentioned, you can ensure your customers receive their orders quickly, securely, and exactly as expected. This curated list of 3PL companies provides a starting point for your research, allowing you to find the perfect fit to elevate your fulfillment strategy. Remember to ask questions about additional services and pricing models to ensure a transparent and successful partnership.
