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In the bustling realm of e-commerce, third-party logistics (3PL) providers are the unsung heroes, ensuring that products, in this exponentially growing industry, get from point A-to-B efficiently and effectively.
However, the challenge in click-and-collect orders or next-day deliveries lies in the intricate operations of 3PLs and isn't just about getting products out the door— it's about doing so sustainably and profitably. Enter Arka, a custom, sustainable packaging company that's not only navigating the world of packaging logistics, but also reshaping the way 3PLs operate. Let's delve into how Arka is becoming an indispensable partner for 3PLs.
Revenue Revolution: Custom Packaging On-Demand
By offering custom packaging options to customers, 3PLs can tap into a new revenue stream. Arka facilitates this by providing on-demand or just-in-time packaging solutions. By facilitating custom packaging for clients, 3PLs not only provide an additional (revenue generating) service, but minimizes overstocking large volumes of generic packaging that seldom is the correct size for clients products or their most commonly purchased combinations.
The draw of customization, especially in the offline customer experience, has come from the need to reset the status quo. For years, businesses have been limited to generic, one-size-fits-all packaging options. While seemingly functional, these standard solutions often fell short in capturing the essence of a brand. Personalized packaging has emerged as a powerful tool in the arsenal of modern brands, enabling them to stand out in an overcrowded market. It's no longer just about protecting the product; it's about delivering a memorable unboxing experience.
Arka's role in transforming this potential into profit arises from its ability to tap into this demand by offer on-demand custom packaging solutions tailored to specific requirements. Whether it's a unique design, logo imprint, or a particular size, Arka's customization platform provides a plethora of options.
But here's where it becomes revolutionary: traditionally, custom packaging would necessitate massive orders, leading to bloated inventories and locked capital. Arka's just-in-time manufacturing ensures that 3PLs can order exactly what's needed for their clients, when it's needed. This streamlined approach minimizes storage costs, reduces waste, and optimizes cash flow.
The mutual benefits for 3PLs and their merchants enables both to reap the rewards of partnership. For 3PLs, this means a fresh revenue stream, whether marking up the unit costs or charging a coordination/administration fee. 3PLs can now cater to clients who require personalized packaging, making their services even more appealing to brands. This not only enhances their value proposition to merchants, but also fosters client loyalty.
Merchants, on the other hand, enjoy the flexibility of getting tailored packaging without the burden of excessive stock, whilst also having their fulfillment needs— both physical packaging and the product fulfillment— managed by a single partner.
This shift might seem subtle, but by embracing on-demand custom packaging, 3PLs and their merchants are poised to revolutionize the e-commerce landscape, one package at a time.
Creating a More Cohesive Platform
The beauty of partnering with Arka is that 3PLs can market their capability to provide custom packaging, eliminating the need for merchants to liaise directly with custom packaging manufacturers. This strategic partnership effectively outsources packaging inventory management, whether it's unbranded or branded, ensuring a smoother experience for merchants.
Moreover, big players (and Arka partners) like ShipBob and Packiyo have recognized the potential of an integrated packaging solution for their own internal operations and the operations of their merchants. They're not just offering packaging— they're providing a comprehensive, value-added service to their clientele, enticing them to convert and stick with their 3PL. Having been at the forefront of innovation the collaboration of these two prominent partners with Arka isn’t merely a business decision; it’s a strategic move to elevate their service offerings by pitching a more holistic solution to their potential customers.
Imagine a merchant, torn between two 3PLs, leaning towards the one that not only promises efficient logistics, but also an array of custom packaging solutions. It’s not just about the tangible product, but the added value that comes with it.
In an age of specialization, businesses often find themselves juggling multiple vendors, each handling a specific aspect of the supply chain. This fragmented approach can lead to inefficiencies, miscommunications, and missed opportunities. Arka’s partnership offers a solution to this challenge, allowing 3PLs to consolidate and streamline their offerings.
Arka's strength isn't just in the packaging; it's in the entire ecosystem they've crafted. When 3PLs partner with Arka, they’re not merely getting a supplier – they're getting a collaborator. This collaboration ensures that the entire packaging process, from design to delivery, is integrated seamlessly into the 3PL's operations.
By serving as a one-stop-shop for packaging needs, Arka alleviates the burdens that merchants typically face. No longer do they need to coordinate between separate entities for their logistics and packaging. Everything is harmonized under one umbrella, leading to faster turnaround times, consistent branding, and reduced overhead.
Beyond acquiring new customers, there's a client retention advantage for 3PLs to have a dedicated packaging partner. Merchants are more likely to stick with a 3PL that continually evolves its offerings, eliminating, one-by-one, the ever-shifting e-commerce challenges through a more cohesive supply chain. 3PLs can ensure that their clientele remain loyal, whilst also attracting new businesses looking for integrated solutions.
Sustainability: No Longer an Option, but a Necessity
Sustainable packaging isn't just an eco-friendly buzzword; it's rapidly becoming a decisive factor for merchants (and their consumers). Arka democratizes access to sustainable packaging options, ensuring 3PLs don't miss out on this critical market trend. Without proactive sustainable offerings, 3PLs run the risk of being sidelined by environmentally conscious merchants and, by extension, their eco-aware customers.
Moreover, the environmental impact of using sustainable packaging is profound. By using recyclable materials and minimizing waste, 3PLs significantly reduce their carbon footprint. Reports by Ellen MacArthur Foundation and Harvard Business Review have shown that businesses that adopt sustainable practices not only help conserve the environment, but also appeal to a growing segment of eco-conscious consumers, boosting their bottom line.
Customizing Packaging Sizes To Optimize Margins
By reducing the volume of air shipped, 3PLs can save substantially on shipping costs. Arka plays an instrumental role here by advising on the perfect pairing of packaging to product. By fitting packaging to product dimensions and the most popular product combinations, therefore, shipping dimensionally smaller packages, 3PLs can both improve their own margin and then offer more competitive pricing to merchants.
Traditionally, 3PLs would stock up on a few generic sizes of packaging, leading to inefficiencies, wasted space, and increased shipping costs. A product too small for its box would require extra filler material, whilst one too big might get damaged in transit due to lack of proper cushioning. With Arka’s custom solutions, these pitfalls become a thing of the past. The packaging matches the product, saving costs, and ensuring a better customer experience.
One of Arka's standout features is its data-driven approach to prescribing packaging sizes. By analyzing how different sizes impact shipping costs, Arka ensures 3PLs and their customers get the best value for their dollar.
Conclusion: Arka — The 3PL Partner for the Future
At the end of the day, it all boils down to the customer. With Arka's sustainable and custom solutions, 3PLs can offer their merchants an enhanced unboxing experience for end consumers. This not only boosts retention rates for the merchants, but also ensures repeat (and growing) business for 3PLs.
In a dynamic industry where staying ahead is paramount, Arka emerges as a partner truly attuned to the needs of 3PL owners. With a relentless focus on design, sustainability, and maximizing customer experience, the choice is clear for 3PL owners keen on future-proofing their operations and delighting their clients: Arka is the way forward.
Learn more about how Arka can revolutionize your 3PL operations today.
