Australia Post’s 2023 eCommerce Industry Report states that, in 2022, overall retail spending in the country was US$242 billion, a 9.2 percent rise over 2021.
This has elevated the need for seamless fulfilment for businesses. However, it can easily turn into a logistical challenge, which makes it more difficult to grow your Australian e-commerce company and provide outstanding customer service. Here’s where 3PL (Third-Party Logistics) companies can help, enhancing consumer satisfaction while supporting your e-commerce operations.
But with so many 3PL businesses operating in Australia, it might be difficult to choose the best partner.
This article is your one-stop resource for selecting the ideal third-party logistics (3PL) supplier for your Australian company. It includes a list of third-party logistics firms along with their respective pros and cons. Let’s dive in!
Overview of Logistics In Australia
Initially, some e-commerce owners may find it difficult to give control of their logistics engine to an outsourced partner. However, the benefits are undeniable. Common challenges faced by businesses include:
- Limited Storage Space: Operating from cramped spaces can make efficient inventory management difficult. Additionally, warehousing can be quite expensive, especially for small scale businesses. And opting for a warehouse in a remote area may compromise on your promise of faster deliveries. This is why partnering with a logistics company with flexible warehousing solutions is key.
- Time-Consuming Processes: Picking, packing, and shipping orders can divert valuable resources away from core business activities. As your business scales, orders pour in, and with limited resources, picking and packing delays might happen. This in turn affects the cut-offs that impact the fulfilment timeline. A logistics provider can ensure that your fulfilment chain runs seamlessly.
- Delivery Complexities: Ensuring fast and reliable deliveries across a vast country like Australia can be a logistical puzzle. Each order is unique, and a logistics company might be able to offer customised services for these orders, including storing them in the warehouse, processing them, record keeping, expiry management, etc
The increasing popularity of outsourced logistics solutions addresses these challenges head-on. By partnering logistics company, e-commerce businesses gain access to:
- Pay-as-you-go warehousing: You only pay for the storage space you need, eliminating the financial burden of leasing a large warehouse upfront. This is especially beneficial for new businesses or those with seasonal fluctuations in inventory.
- Modular fulfilment options: Logistics companies can handle a wide range of products, from small electronics to bulky furniture. They can adjust their packing and shipping methods based on your specific needs, ensuring your products arrive safely and efficiently.
- Integration with your e-commerce platform: Many logistics companies offer seamless integration with popular e-commerce platforms. This allows for automatic order processing and inventory updates, saving you time and minimising errors.
Australian consumers have their set of unique demands. They expect:
- Fast and Reliable Delivery: Rapid delivery options are no longer a luxury, but an expectation. Consumers want their orders delivered quickly, efficiently, and with clear tracking information.
- Seamless Returns and Exchanges: Hassle-free return and exchange processes are crucial for building customer trust and loyalty. Having the ability to return increases the buyer’s confidence. They can confidently choose to buy from a new seller. And a lot of shoppers drop of if the online store doesn’t have the ability to process returns
- Pick & Pack Personalization: While efficiency is important, a touch of personalization can go a long way. Branded packaging and thoughtful touches can elevate the customer experience.
What Can Outsourcing Logistics Do For Your Australian Business?
Benefits of Partnering with a Logistics Company
| Benefit | Description |
| Inventory Management & Optimization | Locked Stock Handling: logistics companies offer dedicated storage space for your inventory, ensuring optimal organisation and control. Inventory Forecasting: Leverage their expertise to predict demand fluctuations and maintain optimal stock levels, minimising stockouts and overstocking. |
| Streamlined Order Fulfilment | B2B Order Workflow: Efficient systems ensure seamless fulfilment of B2B orders, including bulk order processing, customised labelling, and accurate invoicing. |
| Multi-Channel Integration | Multi-Marketplace Integration: Sell across multiple online marketplaces such as shopify, eBay, woocomerce etc, seamlessly. Your logistics company can manage listings, orders, and fulfilment across different platforms, saving you time and resources. |
| Enhanced Customer Experience | Account Health Widget: Gain real-time insights into your inventory levels, order fulfilment status, and customer deliveries. This allows for proactive communication and improved customer satisfaction. |
| Scalability & Cost-Effectiveness | Eliminate upfront investments: Avoid the capital expenditure required for warehouse space, equipment, and personnel. logistics companies offer flexible, scalable solutions that grow with your business. Reduced operational costs: Benefit from economies of scale enjoyed by logistics companies, potentially leading to lower overall logistics costs. |
| Expertise & Efficiency | Leverage logistics expertise: logistics companies specialise in efficient order picking, packing, and shipping, ensuring accuracy and speed. Focus on core business activities: Free yourself and your team to focus on core competencies like marketing, product development, and customer service. |
Factors to Consider When Choosing a Logistics Company
With numerous logistics companies in the Australian market, choosing the right logistics partner requires careful consideration. Here are some key factors to evaluate:
- Technology Integration: Ensure their systems seamlessly integrate with your existing e-commerce platform and other sales channels. Real-time inventory visibility and order tracking capabilities are crucial for e-commerce businesses to make data-driven inventory decisions.
- Multichannel-Selling Support: If you sell across multiple online marketplaces such as shopify, eBay, woocommerce, or have a brick-and-mortar presence alongside your online store, choose a logistics company with expertise in fulfilling orders across various channels.
- Nationwide Coverage: Consider their warehouse network and delivery reach. If you have customers across Australia, choose a provider with a national footprint to ensure efficient nationwide delivery.
- Same-Day Delivery/Fulfilment: Evaluate their capabilities for expedited deliveries. Consumers increasingly expect fast delivery options.
- Scalability & Flexibility: As your e-commerce business scales, a logistics partner provides the magic touch. They offer expanding warehouse space, automate order processing, and synchronise inventory across platforms – all in real-time. This lets you focus on growth, not growing pains.
- Communication & Customer Service: Transparent communication and responsive customer service are essential. Choose a provider that prioritises clear communication and offers solutions to address your specific needs efficiently. This can in turn minimise the customer queries that come in to the customer service team.
Top 10 Logistics Companies In Australia
1. Locad
Locad streamlines your e-commerce journey, letting you focus on business growth. They integrate seamlessly with your existing platforms, eliminating the need for separate fulfilment processes across marketplaces. Their strategically located warehouses across Australia ensure faster deliveries by storing your inventory closer to customers. Locad doesn’t just provide storage; they offer intelligent inventory management with expiry tracking, channel-specific allocation, and efficient processing for optimal stock levels.
Locad goes beyond physical solutions. Their cloud-based platform unifies your sales channels, automates order processing, and provides a real-time dashboard with sales insights and account health scores. No need to juggle multiple tools – Locad centralises everything for informed decisions. Additionally, they offer preferential rates through established partnerships with multiple last-mile carriers.
Locad’s capabilities extend beyond Australian borders, offering international and regional fulfilment solutions to fuel its global expansion. Their strategically located warehouses across Australia ensure nationwide coverage, translating to faster deliveries, improved customer satisfaction, and a competitive edge.
By partnering with Locad, you gain a comprehensive suite of services designed to streamline operations, reduce costs, and delight your customers, allowing you to focus on growing your business while Locad ensures flawless order fulfilment.
Locad’s services include:
– Same Day Delivery/Fulfilment
– Locked stock handling
– Inventory Forecast
– Multichannel selling
– Cross-border selling
– B2B Order Workflow
Experience fulfillment by Locad today!
2. Effective Logistics
Effective Logistics markets itself as a logistics company serving companies in the area, with its headquarters located in Melbourne. They specialise in moving fragile, non-perishable, and perishable goods. Among their services is container cartage. To cut down on delays, they use a two-shift pick-up and delivery system.
Furthermore, Effective Logistics promises to manage interstate freight in addition to providing warehousing and distribution services throughout Melbourne. Effective Logistics emphasises its knowledge and methodical approach to supply chain management, despite the paucity of online consumer feedback.
What customers say:
– Regional expertise
– Handles fragile items
– Lack of scalability
– Lack of pricing transparency
3. FreightPlus
FreightPlus operates in Australia as a specialist freight forwarder for heavy machinery and mining equipment. They handle the entire process, from pre-purchase inspections to biosecurity checks and ocean freight. While this caters to a specific niche, they might also offer general freight forwarding services based on limited online information.
For e-commerce businesses, FreightPlus’ core services likely wouldn’t be directly applicable. However, if you deal in oversized or high-value equipment and require international shipping with biosecurity considerations, FreightPlus might be worth exploring. It’s important to note they might not offer standard e-commerce fulfilment solutions like warehousing or last-mile delivery.
What customers say:
– International reach
– Scalability
– Delayed shipping
– Poor customer service
– Lack of transparency in pricing
4. Linfox
LinFox Logistics is an established player in the Australian logistics landscape, offering a comprehensive suite of services. They handle warehousing and distribution across Australia, potentially catering to e-commerce businesses needing nationwide fulfilment solutions. Additionally, LinFox offers road freight transport, international freight forwarding, and customs brokerage services.
What customers say:
– Nationwide delivery
– International reach
– Lack of scalability
– Expensive
– Poor customer service
5. CTI Logistics
CTI Logistics positions itself as a national transport and logistics provider in Australia. Their services encompass warehousing and distribution, potentially catering to e-commerce fulfilment needs. Additionally, CTI offers services like taxi trucks, fleet management, and security solutions.
While the variety of services suggests experience, it’s important to consider their e-commerce focus. CTI might cater to a broader range of industries. Features like real-time inventory tracking or seamless integration with e-commerce platforms might be limited.
What customers say:
– Extensive warehousing
– No-real time tracking
– No multi-market integration
– Expensive
– No tech-integration
6. IFC Global Logistics
IFC Global Logistics operates in Australia as a freight forwarding and logistics company with a global reach. They offer services like air and sea freight, customs clearance, and warehousing across strategic locations. While IFC positions itself as a provider for businesses of all sizes, their core services likely cater more towards international freight forwarding than the specific needs of e-commerce fulfilment.
For e-commerce businesses in Australia, IFC might not be the most suitable option. Their focus might lie on bulkier shipments or international deliveries, rather than the fast-paced order fulfilment and last-mile delivery solutions crucial for e-commerce.
What customers say:
– Global Reach
– Various modes of freight
– Lack of pricing transparency
– Inconsistencies with smaller shipments
– Slower delivery times
7. Lexington Logistics
Lexington Logistics positions itself as a comprehensive logistics provider in Australia, offering warehousing and distribution services across the country. This could be a potential fit for e-commerce businesses needing nationwide fulfilment solutions. Lexington Logistics also boasts experience in customs brokerage, which might be helpful for businesses that import or export inventory.
What customers say:
– Nation-wide coverage
– Lack of tech-integration
– No muli-marketplace integration
– Poor customer service
8. Toll Group
Toll group is a 3PL fulfilment provider in Australia, offering a variety of services to ensure all the needs of your e-commerce business are met. With a strong hold on sustainability, Toll Group ensures to practise eco-friendly fulfilment by using fuel-efficient vehicles and eco-friendly packaging materials.
Additionally, with their Supply Chain Control Tower, you can monitor and address disturbances in real time, ensuring that your business operates smoothly.
What Customers Say:
– Good customer service
– Unreliable delivery
– No delivery updates
– Inaccurate tracking
– Longer delivery times
9. Stockwell International
Stockwell International operates in Australia as a customs brokerage and freight forwarding company. Their services focus on international shipments, including air and sea cargo, customs clearance, and quarantine management. While they might handle logistics for e-commerce businesses that import or export goods, e-commerce fulfilment wouldn’t be their core strength.
For Australian e-commerce businesses primarily concerned with domestic fulfilment and last-mile delivery, Stockwell International likely wouldn’t be the most suitable choice. Their expertise lies in navigating international regulations and customs clearances, which might not be as critical for domestic e-commerce fulfilment.
What Customers Say:
– International Expertise
– Limited domestic coverage
– Poor customer service
– Longer delivery times
– No real-time tracking
10. PikPak
PikPak is an all-inclusive 3PL supplier in Australia that offers e-commerce businesses a variety of solutions for their warehousing, order fulfilment, and inventory management needs..
This logistics company allows e-commerce businesses to focus on product manufacture and sales by assigning their logistical needs to an outside 3PL provider.
The warehouse services offered by PikPak offer safe and secure storage options for a wide range of products, including home goods, machinery, clothing, and medications.
Additionally, they offer an easy-to-use dashboard that shows the status of orders in real time across a variety of channels, from placement to delivery.
What Customers Say:
– Flexible warehousing
– Glitches within its platform
– Poor shipping timelines
– Delayed delivery
Choosing The Right Logistics Company for your Australia E-commerce Business
To ensure smooth functioning of your business, choosing a logistics company that knows not just the local technicalities but also your requirements is crucial. Before you select a logistics company, here are some key features to look out for:
Technology:
Seamless integration between your e-commerce platform and the logistics company’s Warehouse Management System (WMS) is paramount. Look for a logistics company that offers robust Order Management System (OMS) compatibility. This ensures real-time order visibility, reduces errors, and streamlines your fulfilment process.
Beyond the Basics:
While these initial considerations are crucial, don’t stop there. Explore value-added services offered by different logistics companies. These could include returns processing, gift wrapping, or even kitting for subscription boxes. These additional services can elevate your customer experience and give you a competitive edge.
Matching Your Needs:
The ideal logistics company isn’t a one-size-fits-all solution. Consider your specific needs. Do you sell temperature-sensitive products requiring specialised storage? Do you have a high volume of subscription boxes demanding efficient batch management? Look for logistics companies with expertise that aligns with your product type and fulfilment requirements.
Transparency:
Clear communication and access to real-time data are vital. Look for logistics companies that offer transparent reporting on inventory levels, order fulfilment status, and even performance metrics. This allows for proactive problem-solving and continuous improvement.
Conclusion
Australia’s e-commerce industry is full of potential, and the right logistics company can be your key to success.
The ideal logistics company is more than just a service provider; they are a strategic partner in your online business venture. Thus, arm yourself with the knowledge included in this guide and let your company reach new heights.
You may overcome fulfilment obstacles, optimise operations, and eventually achieve sustainable e-commerce growth when you have a strategic logistics provider on your side. Partnering with Locad can help your company open up to opportunity and sales. Our tech-integrated logistics system is your one-stop solution for all logistical challenges. Sign up today!
