Key Factors To Consider When Choosing A 3PL
If you’re looking for some help packing and shipping your products, it may be time to partner with a third-party logistics provider (3PL). With a...
2 min read
Emily Tvelia : Jul 16, 2024 1:42:47 PM
Business-to-business (B2B), sometimes called wholesale, and direct-to-consumer (DTC) fulfillment are both vital aspects of the logistics industry.
On the most basic level, B2B warehouses manage inventory for companies who are selling to another business. DTC warehouses work with companies who sell their products to consumers directly.
To break this down a bit more, let’s say that a 3PL has 100 reusable water bottles to sell. In a B2B warehouse, the water bottles would be placed on a pallet and all sent to one end location. In a DTC warehouse, the water bottles could potentially be shipped to 100 different individuals.
DTC warehouses tend to be more logistically complex due to the nature of picking, packing, and shipping many more small orders. In B2B, there are much larger orders being fulfilled with strict labeling and packaging requirements.
You might be wondering, do all warehouses focus solely on one type of fulfillment? The answer is no; a warehouse can handle both B2B and DTC orders. A hybrid warehouse will have a warehouse management system (WMS), technology, and labor plan that can handle fulfilling large wholesale orders along with a high volume of unique DTC orders. This can be logistically complex and requires detailed planning, but is beneficial for 3PLs and brands alike.
Numerous companies operate in both B2B and DTC markets, enabling a hybrid warehouse to store and fulfill all their inventory needs. Some companies currently focus only on DTC sales, but are thriving and aim to expand into the wholesale market. A warehouse that has the capabilities to fulfill both B2B and DTC orders encourages brand growth and evolves with companies as they grow into new markets.
B2B and DTC fulfillment face unique and different challenges, but have the ability to coexist in a hybrid warehouse.
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