3PL Integration: 5 Tips for CPG Brands on Shopify

Struggling to manage inventory, fulfillment, and shipping on Shopify? Partnering with a 3PL provider can simplify operations and help your CPG brand scale. Here’s how to make it work:

• Choose the right 3PL: Look for Shopify-ready providers with features like API integration, FDA compliance, and real-time analytics.
• Sync inventory: Use apps like Ordoro or ShipMonk to keep stock levels accurate and avoid overselling.
• Automate order processing: Tools like ShipHero and Shopify Flow can speed up fulfillment and reduce errors.
• Leverage data: Track metrics like order accuracy, fulfillment speed, and costs to improve efficiency.
• Plan for growth: Scale operations with a 3PL that offers nationwide coverage, advanced tools, and seasonal flexibility.

Quick Tip: A strong 3PL integration can cut delivery times by 50%, reduce costs, and boost customer satisfaction. Ready to streamline your logistics? Let’s dive in.

3 signs you need a 3PL | Shopify Plus 3PL guide to logistics

Tip 1: Pick a 3PL Provider That Knows Shopify

Choosing the right 3PL provider can make a huge difference for CPG brands using Shopify. Here’s what to consider when searching for a partner with Shopify expertise.

What to Look for in a Shopify 3PL Partner

When evaluating 3PL providers, prioritize these key features:

These features ensure your 3PL partner can integrate seamlessly with your existing tools like inventory management and warehouse systems, keeping your operations smooth and efficient.

How Shopify-Ready 3PLs Help Your Business

A 3PL provider with Shopify expertise can simplify your supply chain and help your business grow.

"Don’t choose a 3PL based on where you are today, but rather where your business is going to be one to three years from now." – Shopify Fulfillment Network Merchant Success Lead

The right partner will automate processes like order fulfillment and inventory updates, offer expert integration support, and provide strategic advice to optimize costs and boost sales. Plus, they’ll have the ability to scale alongside your business as you grow.

Ask for references from other Shopify-based CPG brands to confirm their expertise and commitment to long-term success.

Tip 2: Set Up Live Inventory Updates

Keeping your Shopify store and 3PL inventory in sync is critical for avoiding stockouts and keeping customers happy. Here’s how to set up live inventory updates effectively.

Best Apps for Inventory Tracking

These apps can help you maintain accurate inventory synchronization between Shopify and 3PL systems:

For example, Project Nursery adopted Ordoro in June 2023 to align their warehouse inventory with dropshipping operations. This integration allowed them to achieve smooth synchronization across all sales channels.

Once you’ve chosen the right app, it’s important to address any potential synchronization challenges.

Fix Common Inventory Sync Issues

Many CPG brands encounter inventory-related challenges when working with 3PLs. Here are some practical strategies to tackle these issues:

• Inventory Discrepancies
  Conduct an audit as soon as discrepancies are identified. Craft Sportswear NA resolved this issue by using the EZ Inventory app in February 2019. The app offered built-in error handling and quick troubleshooting support .
• Data Flow Problems
  Smooth data sharing is essential for a successful 3PL partnership.

  Greg Roughan explains, "Great data sharing is the biggest factor in a successful 3PL relationship. Centralize customer details, tracking numbers, and billing info so your 3PL receives data automatically via Unleashed’s API."

• System Integration Issues
  Prevent sync problems by keeping your Shopify app updated, automating inventory sync across platforms, using barcode or SKU management, and limiting who can adjust inventory levels.

Regular audits are key to ensuring your inventory records match across systems. This reduces the chance of errors, improves order fulfillment, and keeps your operations running smoothly.

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Tip 3: Speed Up Order Processing

Quick order processing not only keeps customers happy but also helps cut down on costs. Here’s how you can streamline fulfillment using 3PL integration.

Order Processing Automation Tools

Using automation tools can significantly reduce manual work and make order handling faster. Here are some top picks for Shopify stores:

These tools turn manual tasks into smooth workflows. For example, ShipMonk has helped many Shopify stores improve their operations with its all-in-one solutions, including transparent billing and advanced fulfillment systems . By using automation, you set the stage for faster and more efficient order processing.

Connect Shopify to 3PL Fulfillment

While automation tools are essential, connecting Shopify with your 3PL provider ensures smooth order fulfillment. Here are three steps to make it happen:

1. Set Up an Order Management System (OMS)
   An OMS acts as a central hub, bringing all your orders together and monitoring their progress. This ensures Shopify and your 3PL work in sync .
2. Use Algorithmic Shipping
   Automated shipping tools pick the best carriers based on delivery time, cost, and location. This not only speeds up deliveries but also cuts down on shipping expenses .
3. Leverage Shopify Flow
   Shopify Flow automates tasks like generating shipping labels, sending low-stock alerts, prioritizing orders, and reordering inventory. When paired with fulfillment software, it provides real-time inventory updates and automatic order syncing . This minimizes the risk of overselling and shipping delays.

Tip 4: Use Data to Improve Supply Chain

Using data effectively can give your supply chain a competitive edge. Here’s how to turn logistics data into actionable improvements.

Key Metrics to Monitor

Keeping track of specific metrics helps identify areas for improvement and uncover opportunities:

For example, Our Place improved their warehouse network, cutting delivery times from 5–6 days to 2.5 days and saving $1.5 million in freight costs . These metrics provide the foundation for turning insights into impactful strategies.

Turning Data into Action

Here’s how to make data-driven decisions that improve your supply chain:

• Use Analytics Tools: Leverage tools for real-time SLA tracking, monitoring performance across multiple locations, and generating automated scorecards.
• Apply Predictive Analytics: Use forecasting to align inventory, staffing, and shipping with demand.
• Implement Insights: Put the data to work by making operational adjustments.

"ShipBob has transformed our operations into a key competitive edge. I doubt any of our competitors can match our ability to receive orders and deliver them within two and a half days at average. With ShipBob, misshipments are rare occurrences, enabling us to consistently deliver on our promises to customers, ensuring they receive exactly what they’ve ordered."

Semaine Health is a great example of this approach in action. By strategically distributing inventory across four fulfillment centers, they reduced shipping times from 5.2 to 3.6 days and lowered fulfillment costs by $2 per order .

Tip 5: Plan for Business Growth

Expand your logistics to handle more orders while keeping operations smooth. Here’s how to maintain efficiency as your business grows.

Scale Your 3PL Operations

Scaling effectively requires strong systems and partnerships. Your 3PL provider should deliver:

To scale successfully, prioritize these areas:

• Use modern tools for real-time updates and automated order workflows.
• Partner with carriers and suppliers through shared digital platforms.
• Rely on data analytics to spot and fix process slowdowns quickly.

Also, be ready to handle predictable seasonal order surges as your business grows.

Handle Seasonal Sales Spikes

Seasonal demand requires careful preparation. SEKO Logistics highlights:

"Partnering with a 3PL provider offers tremendous flexibility and scalability"

Plan Ahead:

• Review past sales data and share forecasts with your 3PL.
• Set up automatic reorder points for high-demand products.
• Spread inventory across multiple fulfillment centers to meet regional needs.

Peak Season Tactics:

• Batch orders during busy periods for faster processing.
• Clearly prioritize which orders ship first.
• Develop smooth return processes.
• Stay in close contact with your 3PL to address any issues promptly.

Use Technology to Stay Ahead: Your 3PL should offer tools for advanced analytics and demand forecasting . These tools help you:

• Track trends in real time.
• Adjust inventory levels automatically.
• Allocate stock to the right locations.
• Expand warehouse space as needed.

Conclusion: Next Steps for 3PL Success

5 Tips Summary

To make the most of your 3PL integration on Shopify, focus on these practical strategies:

By applying these tips, you can simplify operations and set the stage for growth.

Results You Can Expect

Effective 3PL integration leads to clear, measurable benefits. For instance:

"ShipBob’s solutions have been game-changing for our brand… We literally would not have been able to expand this year without ShipBob." – Matt Crane, Co-Founder and Chief Science Officer at Semaine Health

Here’s what you can achieve by following these strategies:

• Order accuracy exceeding 99.95%
• On-time shipping performance at 99.96%
• Orders processed in under an hour
• Delivery times reduced by up to 50%

A real-world example? Our Place teamed up with ShipBob and saw these results:

• Saved $1.5 million in freight costs
• Cut delivery times from 5–6 days to just 2.5 days
• Expanded their warehouse network from 2 to 4 locations

To maintain these outcomes, regularly review your performance with your 3PL provider. Monitor key metrics, address any technical issues promptly, and adjust your integration strategy as your business evolves. Use your 3PL’s expertise to keep improving and staying ahead.

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