With a tech-indulged population, an ecosystem that facilitates online shopping, and ever-growing internet usage, e-commerce businesses are rushing to tap into the Philippine market. Fulfilling customer orders efficiently is one of the top drivers of customer delight and loyalty. E-commerce business owners often face challenges implementing cost-effective and faster shipping options for customers. This quickly becomes a logistical hurdle due to the country’s vast geographical area.
This is where 3PL (Third-Party Logistics) providers come in, offering a seamless solution for streamlining your business operations and in turn helping you achieve overall growth and success. But with a multitude of 3PL companies, choosing the right one that can give your business a competitive edge can be confusing.
This article highlights the top 3PL fulfillment companies in the Philippines and the factors one must consider before partnering with a 3PL provider. Let’s jump in!
Overview Of Philippine 3PL Fulfillment
As of 2021, the e-commerce transactions in the Philippines reached around 270 billion pesos.
As quick fulfillment and affordable shipping become decisive factors in the buying journey, e-commerce businesses can no longer ignore the importance of fulfillment in ensuring supply chain stability.
Philippine 3PL (Third-Party Logistics) fulfillment businesses have become an essential component of the e-commerce ecosystem in order to meet the demands of this expansive sector.
Leading Philippine 3PL providers seamlessly integrate with popular local and international online marketplaces, including:
With this integration, e-commerce companies may streamline operations and improve customer experiences by managing inventory, filling orders, and tracking shipments across several platforms from a single interface.
Logistics Connectivity and Infrastructure:
The Philippines continues to invest heavily in infrastructure development, particularly within major logistics hubs like Metro Manila, Cebu, and Davao. This translates to:
- Improved Road Networks: Streamlined transportation routes facilitate efficient last-mile delivery across the archipelago.
- Modern Warehousing Facilities: Strategically located warehouses with advanced technology ensure optimal storage and order fulfillment capabilities.
- Growing Air and Sea Freight Network: Strong connections to international ports and airports enable efficient handling of import and export operations for optimal inventory and international fulfillment.
The Role of 3PL Fulfillment in Philippine E-commerce:
3PL fulfillment companies play a critical role in empowering Philippine e-commerce businesses by:
- Reducing Costs: Leveraging economies of scale to negotiate better rates with warehouses and carriers, leading to cost savings for businesses.
- Scalability: Providing flexible storage and fulfillment solutions to adapt to fluctuating order volumes as businesses grow.
- Improved Customer Experience: Ensuring faster deliveries through strategically located warehouses and efficient fulfillment processes, leading to higher customer satisfaction.
- Expertise and Technology: Using technology to improve visibility, allocate carriers more efficiently, and streamline orders. It also provides a single source of truth that enables companies to project demand, sales, and resource allocation using real-time analytics.
What Does A 3PL Do For Your Philippine Business?
While warehousing plays a crucial role, a 3PL provider offers far more than just storage space. Here’s how partnering with a Philippine 3PL can significantly benefit your Philippine e-commerce business:
1. Streamlined Supply Chain: Get rid of the hassles associated with overseeing personnel, warehouse space, and logistical infrastructure. From receiving your inventory to handling effective last-mile delivery, a 3PL handles everything.
2. Order Tracking and Management: Say goodbye to manual order processing! 3PLs utilize advanced Warehouse Management Systems (WMS) that enable real-time order tracking, inventory management, and automated fulfillment workflows. This translates to fewer errors, reduced processing times, and happier customers who can easily track their purchases.
3. Pick and Pack Services: Forget the hassle of individually picking and packing orders on the daily. 3PLs offer efficient pick and pack services, along with customisation and flexibility, thus ensuring accurate order fulfillment and timely deliveries.
4. Cost Savings: 3PLs leverage economies of scale to negotiate better rates with warehouses, carriers, and packaging suppliers. This translates to significant cost savings for your business, allowing you to reinvest in growth initiatives.
5. Scalability: As your business scales, your fulfillment needs will evolve. A 3PL provider helps you adjust infrastructure and service requirements seamlessly. Whether you experience seasonal spikes or launch new product lines, a 3PL can handle it all.
6. Improved Customer Experience: Fast and reliable deliveries are important for customer satisfaction in e-commerce. 3PLs utilize efficient fulfillment processes and established relationships with couriers to ensure timely order deliveries. Additionally, some 3PLs offer value-added services like returns processing, further enhancing the customer experience.
Partnering with a reputable 3PL provider in the Philippines allows you to free up valuable time and resources. You can focus on core business activities like product development, marketing, and customer service, while the 3PL handles the complexities of fulfillment.
How An E-Commerce Business Functions With And Without A 3pl Fulfillment Provider
| Task | In-House Fulfillment | 3PL Fulfillment Provider |
| Inventory Management | Business is responsible for purchasing, storing, and managing inventory levels. | A 3PL provider stores inventory based on business needs and offers real time visibility through inventory alerts. |
| Warehousing | Business leases or owns warehouse space, manages utilities, and security. | 3PL provider offers storage space within their warehouse network. |
| Order Processing | Business receives orders online, manually processes them, and picks/packs for shipment. | 3PL provider receives orders electronically from the business’s online store and fulfills them. |
| Pick & Pack | Business staff picks and packages orders for shipment. | 3PL provider will coordinate with its warehouse executive to help pick and pack orders based on the business’s fulfillment instructions. |
| Shipping | Business arranges and pays for shipping with carriers. May require negotiating rates. | 3PL provider utilizes established relationships with carriers to arrange and manage shipping, potentially offering discounted rates. |
| Customer Order Tracking | Business may need to develop or use a separate system for order tracking. | 3PL provider offers a Warehouse Management System (WMS) for real-time order tracking and customer updates. |
| Returns Processing | Business is responsible for receiving, processing, and issuing refunds for returned items. | 3PL provider can offer returns processing services for an additional fee. |
| Scalability | Scaling up or down requires adjusting warehouse space, staffing, and processes. | 3PL provider’s infrastructure and staffing can adapt to accommodate business growth or fluctuations. |
| Expertise | Business relies on its own knowledge or may need to hire staff to manage logistics. | 3PL provider offers expertise in warehousing, fulfillment, and logistics best practices. |
| Technology | Businesses may need to invest in separate software for order management and inventory control. | 3PL provider’s WMS integrates with the business’s online store for seamless order processing. |
Top 10 3PL Fulfillment Companies In Philippines
1. Locad
Leading the way in the Philippine 3PL market, Locad promotes a tech-driven strategy to strengthen your Philippine e-commerce enterprise. Your operations’ primary nervous system is their powerful Order Management System (OMS) which allows popular marketplaces like Lazada, Shopee, Shopify, Tiktok Shop and Zalora to be effortlessly integrated with it.
This means that managing different platforms for different marketplaces is no longer necessary because you will have a single, consolidated view of your inventory and orders across all sales channels.
Locad’s dedication to technology extends beyond its partnerships with marketplaces. With features that optimize your fulfillment operations and increase productivity, their OMS gives you the power to keep your inventory on track and avoid stockout with their Out-Of-Stock indicator. Additionally, Repetitive tasks like order picking, packing, and shipping are eliminated by automated workflows within the OMS. You can easily handle and cancel bulk orders with bulk shipping management, giving you complete control over your fulfillment procedures.
Locad’s focus on technology empowers you to streamline your operations, improve efficiency, and ultimately, deliver exceptional customer experiences.
Locad’s services include:
– Same Day Delivery/Fulfillment
– Locked stock handling
– Inventory Forecast
– Multichannel selling
– Cross-border selling
– B2B Order Workflow
Experience fulfillment by Locad today!
2. Payo Asia
In the Philippines, Payo Asia is a quickly expanding third-party logistics (3PL) company that provides an extensive range of fulfillment options for online retailers. They promise smooth interaction with your webshop and quick order processing, putting a strong emphasis on automation and technology.
Payo’s ultimate purpose is to simplify and ease e-commerce. Merchants may then concentrate on what they do best, which is expanding their business and generating revenue.
What Customers Say:
– Tech-integration
– Poor customer service
– No international shipping
– Lack of transparency in pricing structures
3. F2 Logistics
F2 Logistics Philippines is an established player in the Philippine 3PL market that provides a wide range of services, including cold chain solutions, international shipping, and warehousing in addition to local freight. Their well-established infrastructure and vast network of warehouses guarantee effective fulfillment across the nation.
What Customers Say
– Extensive infrastructure
– Offers international shipping
– No real-time tracking
– Expensive
– Poor customer service
– Poor packaging
4. Airspeed
Since 1985, Airspeed has been a reliable logistics firm in the Philippines. Airspeed provides ground handling and air cargo services. They have experience in door-to-door delivery as well as freight forwarding, warehousing, haulage and customs clearance.
What Customers Say
– On-time delivery
– Competitive pricing
– No integration with marketplaces
– Lack of clarity in tracking
5. Transportify
Using a tech-driven platform, Transportify Logistics Philippines links companies with a network of delivery and on-demand trucks. Offering solutions for same-day delivery, intercity cargo movement, and even freight forwarding services inside the Philippines, they serve companies of all sizes.
What Customers Say
– Offers real-time tracking
– Digital proof of delivery
– No sea and air forwarding
– Expensive
– No international shipping
6. CTSI Logistics Philippines
In 1989, CTSI Logistics was established as a freight forwarding company, providing services to Micronesia, Guam, and the Northern Mariana Islands (Saipan). Originally called Consolidated Transportation Services Inc, the business changed its name to CTSI Logistics in order to reflect its evolution into an integrated logistics provider during the 1990s trade and globalization boom.
What Customers Say
– Offers International freight forwarding
– Global network
– Expensive
– Poor customer service
– Complicated return procedures
7. Anchanto
Anchanto Logistics Philippines offers a comprehensive suite of 3PL solutions designed for e-commerce businesses. They combine warehousing and fulfillment services with value-added features like kitting, customized packaging, and cash-on-delivery (COD) management. Anchanto leverages technology to ensure seamless integration with online stores and provides real-time tracking visibility throughout the fulfillment process.
What Customers Say
– Real time tracking
– Poor customer service
– Expensive
– Delayed delivery
– Poor refund and return system
8. FedEx PH
Beyond traditional 3PL services, FedEx Philippines stands out for its expertise in fast and reliable international express delivery. Businesses can leverage their extensive global network and established infrastructure to reach customers worldwide. They cater to both businesses and individuals, offering various shipping options and online tools for managing shipments.
What Customers Say
– International shipping
– Expensive
– Delayed delivery
– Poor customer service
– Excessive taxes
9. CEVA Logistics
As a division of the CMA CGM Group, CEVA Logistics is a global leader in logistics and shipping. Large and medium-sized national and international firms have complicated and frequently changing supply chain needs, and their specialists specialize in creating end-to-end customized solutions to match those needs.
What Customers Say
– International Shipping
– Lack of personalized packaging
– Incompetent website
– Poor customer service
– Delayed delivery
– Delayed pick-up
10. ShipIt
ShipIt Logistics Philippines offers a two-pronged approach, catering to both international and domestic needs. They provide cost-effective international courier services for businesses looking to expand their reach. Additionally, they handle import solutions for individuals or businesses requiring assistance bringing goods into the Philippines. Their services are designed to ensure swift and secure deliveries, with clear communication throughout the customs process.
What Customers Say
– Fast delivery
– Late responses to enquiries
– Inaccurate tracking system
– Poor customer service
– Expensive
– Delayed pick-up
Why Hire a 3PL Fulfillment Service Provider In The Philippines?
As easy as it may seem, choosing the right 3PL is no silly task. The most important question is, what precisely can a 3PL accomplish for your Philippine company, and why should you think about outsourcing your fulfillment requirements? Here are a few things to think about:
1. Streamlined Order Management with Powerful OMS Integration
Managing orders across multiple marketplaces and platforms can quickly become overwhelming. 3PL providers offer robust Order Management Systems (OMS) that seamlessly integrate with your e-commerce store and popular online marketplaces like Lazada, Shopee, Tiktok Shop and Zalora. This allows you to:
- Centralized Order Processing: Receive and manage orders from all your sales channels in a single platform, eliminating the need for manual data entry and reducing errors.
- Real-Time Inventory Visibility: Gain complete transparency into your inventory levels across all warehouses managed by the 3PL. This ensures you can fulfill orders accurately and avoid stockouts.
- Automated Workflows: Automate repetitive tasks like order picking, packing, and shipping, freeing up your time to focus on strategic business planning.
- B2B Order Workflow: Many 3PLs offer B2B functionality within their OMS, allowing you to create and manage bulk orders for wholesale or business-to-business transactions efficiently.
2. Inventory Forecasting and Expiry Management: Optimizing Your Stock
Accurate inventory forecasting is crucial for any e-commerce business. 3PL providers leverage sophisticated inventory management systems that utilize historical sales data and industry trends to predict future demand. This allows you to:
- Maintain Optimal Stock Levels: Avoid costly stockouts and high holding costs associated with overstocking by ensuring you have the right amount of inventory on hand to meet customer demand.
- Minimize Expiry Risks: 3PLs can implement expiry management systems that identify and prioritize the sale of products nearing their expiration date, reducing product waste and potential losses.
3. Embrace Multichannel Selling and Reach New Customers
Partnering with a 3PL provider allows you to expand your reach effortlessly. Many 3PLs offer integrations with major online marketplaces in the Philippines, social media selling platforms like Tiktok Shop. This empowers you to:
- Sell on Multiple Platforms: List your products on various platforms without managing individual fulfillment for each channel such as Shopee, Lazada, Shopify and Tiktok Shop.
- Increased Customer Visibility: Expand your reach to a wider customer base across different online marketplaces and social media platforms.
- Streamlined Fulfillment: The 3PL manages fulfillment across all your sales channels, ensuring a consistent customer experience regardless of where they purchase your products.
4. Local Coverage and International Expansion
With a strong physical presence in the Philippines, 3PL providers offer extensive local coverage. Many have strategically located warehouses across major cities like Metro Manila, Cebu, and Davao, ensuring fast and efficient deliveries across the archipelago. Additionally, some 3PLs can help you navigate:
- International Selling: Explore international expansion opportunities by using the 3PL’s experience and established relationships with international shipping carriers.
- Cross-Border Fulfillment: Manage the intricacies of international orders, including customs brokerage, documentation, and international shipping arrangements.
Beyond these core functionalities, here are some additional benefits of hiring a 3PL provider in the Philippines:
- Kitting: Many 3PLs offer batch management services, allowing you to efficiently fulfill subscription boxes or bulk orders.
- Expertise and Technology: 3PLs possess industry expertise and invest in advanced technology to optimize your fulfillment processes and provide valuable insights.
- Scalability: As your business grows, your fulfillment needs will evolve. A 3PL can seamlessly adapt and scale its services to accommodate your changing requirements.
- Cost Savings: 3PLs leverage economies of scale to negotiate better rates with warehouses, carriers, and packaging suppliers. This translates to significant cost savings for your business.
Choosing the right 3PL Fulfillment provider
Due in large part to the country’s rising internet penetration rate and tech-savvy populace, e-commerce in the Philippines is flourishing. The problem of overseeing effective and scalable fulfillment systems, however, also comes with this expansion. This is where third-party logistics, or 3PL, firms come into their own. Your company may increase customer happiness, optimize processes, and eventually achieve sustainable growth by partnering with the proper 3PL.
However, choosing the perfect 3PL partner requires careful consideration. Here are some key factors to evaluate when making this important decision:
1. Services Offered: Does the 3PL provider offer a comprehensive suite of services that align with your business needs? Consider crucial aspects like warehousing, order fulfillment (picking, packing, shipping), inventory management, and returns processing. Some 3PLs might offer additional value-added services like kitting, customized packaging, or cash-on-delivery (COD) management.
2. Technology Integration: Seamless integration with your e-commerce platform and online store is crucial. Efficient 3PLs utilize robust Order Management Systems (OMS) that integrate seamlessly with popular marketplaces like Lazada, Shopify, Shopee, and Tiktok Shop. This allows for centralized order processing, real-time inventory tracking, and automated workflows, minimizing errors and streamlining fulfillment.
3. Scalability and Flexibility: Your business needs will evolve as you grow. Choose a 3PL provider that can adapt and scale their services alongside your business. They should have the infrastructure and resources to accommodate fluctuations in order volume and product types.
4. Pricing and Transparency: Cost is a significant factor. While price shouldn’t be the sole deciding factor, ensure the 3PL offers transparent pricing structures that align with your budget and business model.
5. Geographic Coverage and International Expansion: Consider your target market. Does the 3PL have strategically located warehouses across the Philippines for efficient domestic deliveries? If international expansion is part of your vision, explore if the 3PL offers expertise and established relationships with international shipping carriers to facilitate cross-border fulfillment.
6. Customer Service and Communication: A reliable 3PL prioritizes open communication and responsive customer service. Look for providers that offer dedicated account managers and readily available support to address any concerns or inquiries promptly.
7. Industry Expertise and Reputation: Research the 3PL’s experience and reputation within the e-commerce and logistics industry in the Philippines. Look for testimonials, case studies, and industry awards that demonstrate their track record of success.
Conclusion
Choosing the right 3PL partner is an investment that determines your business success in the Philippines. A reliable third party fulfillment company manages inventory storage, pick and pack, order fulfillment and tracking so that you can focus on what really matters—creating outstanding products and shopping experiences for your clients. A 3PL fulfillment provider must comprehend your unique needs and provide a full range of services, technology integration, and infrastructure to support business growth and expansion.
Experience fulfillment by Locad today!
Frequently Asked Questions
What is a 3PL fulfillment company in the Philippines?
A 3PL fulfillment company in the Philippines acts as a third-party logistics provider, handling warehousing, picking, packing, and shipping your e-commerce orders.
What are the benefits of using a 3PL fulfillment company in the Philippines?
Using a 3PL provider in the Philippines can save you time and money, improve efficiency, and boost customer satisfaction.
How can I choose the right 3PL fulfillment company for my business?
To choose the right 3PL company, consider factors like services offered, technology integration, geographic coverage, scalability, pricing, and reputation.
What services do 3PL providers usually offer?
Common 3PL services include warehousing and inventory management, order fulfillment (picking, packing, shipping), and value-added services like kitting or returns processing.
