3PL Kitting Introduction
BFC focused efforts into areas: 3Pl kitting and Marketing Fulfillment Solutions.
Third Party Logistics (3PL) is one of the fastest growing industries in the world. As more and more companies focus on eCommerce and optimizing their supply chains, there is a lot of confusion between different logistic models, like 3PL vs. 4PL, and how that can impact your bottom line.
Here is a simple explanation between the different logistic models.
1PL (1st Party Logistics) – Manufacturers or Producers utilize their own resources to take product from their facility and deliver it directly to the marketplace. Imagine a farmer growing their own produce and then selling that produce out of their truck at a farmers’ market. There is only “one” touchpoint in the supply chain.
2PL (2nd Party Logistics) – Depending on the size of the organization, they can utilize different 2PL options. This includes either inbound services (raw materials) or outbound services (finished products). One of the best examples is anyone using USPS, UPS, or FedEx to delivery their products to a customer. BFC utilize 2PL to drop ship our products to customers.
3PL (3rd Party Logistics) – This model utilizes a 3rd party that adds value services to the supply chain. Manufacturers send their products directly to the 3PL partner for storage, pick & pack, fulfillment services, inventory management, and kitting. In these situations, companies lack the investment and infrastructure to keep up with customer demand. A 3PL partner can take on the heavy lifting to ensure your products get to market and meet customer expectations.
4PL (4th Party Logistics) – These types of providers are considered more of a supply chain integrator or Lead Logistics Partner (LLP). A 4PL manages and integrates the entire supply chain for an organization. This might include managing multiple 3PL partners (inbound/outbound) that are focused on optimizing the entire supply chain. The ultimate goal is to coordinate the end-to-end data gathering to provide real-time information to increase the supply chain visibility.
5PL (5th Party Logistics) – These providers are focused on big data, leveraging technology, and Artificial Intelligence (AI) to transform a supply chain to a supply network. This is where you see companies like Amazon sourcing product, warehousing, robotic pick & pack, and last mile delivery of their products. They are focused on controlling every stage of the supply chain and creating the most value for the company.
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3PL (third party logistics) Kitting is one of the fastest growing areas at BFC. We have had great success in providing fulfillment for Welcome Kits in many industries.
Enrollment communications and policy fulfillment are unique welcome kits that require different production options. Some organizations provide simple ID cards or policy cards to confirm enrollment. Think of the yearly benefits cards you received at the start of the year. Other programs include ID cards that are scanned or read to allow access to the organizations. We can produce static and dynamic ID cards as part of the enrollment process.
Another kitting fulfillment capability is building customer Point of Sale (POS) displays for the DIY home improvement industry. This could be a simple assembly display and loading of sales items. It might also be creating unique displays that require high-quality craftsmanship to cut, sand, drill and build one-off fixtures.
The same DIY home improvement industry also requires a lot of product samples. These samples can include different colors and finishes of these products. The sample kits include unique items that can be provided to customers at POS displays within the location.
Display ready products are vital to the DIY home improvement industry. BFC can assemble kits that are aisle ready and easy to set up. The kit is packaged with easy installment in mind, with everything needed inside. Simply cut a few strips of tape, remove the outer box, and the client is ready to roll.
Our experience includes VIP Concert ticket holders’ exclusive kits. These kits included a high-end printed box, concert posters, merchandise, and personalized tickets. All these items are hand assembled and triple checked for accuracy. A water bottle and arena approved bags are great products for customer engagement and loyalty programs.
We created an on-boarding kit for on-going professional education programs that require 100% accuracy across the board. The kit includes the training materials, registration, and graduation certificates. Each item must be verified with each other to ensure they are all for the right person.