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For Irish companies wishing to sell online into the U.S. it is imperative to be aware of how to best manage the shipping process. With the constraints around time and cost, shipping from Ireland greatly limits potential sales. Third-party logistics companies alleviate this by completely taking care of the product once an online purchase is made.

Third-party logistics (or 3PL) refers to the outsourcing of ecommerce logistics processes to a third party business, including inventory management, warehousing, and fulfillment. The third party logistics also allow ecommerce merchants to accomplish more, with the tools and infrastructure to automate retail order fulfillment.

Third-party logistics providers manage inbound and outbound transportation for their clients, as well as warehousing. Most 3PL companies own or lease warehouse space, which they provide to their clients. They generally don’t own their own fleet of trucks but contract with other carriers for freight and shipping.

1. The 3PL receives your inventory at its warehouse and organizes each SKU. 2. When an order is placed on your ecommerce site, it’s either manually forwarded to the 3PL or automatically pushed (if its software integrates with your online store). 3. A warehouse team member gets a picking list to collect the items that have been ordered.

4. The items are packed in boxes with the receipt and order details. 5. The 3PL prints the shipping label or uses one of its shipping carrier partners. 6. The shipping carrier collects the package from your 3PL’s distribution center and delivers it to your customer. 7. Tracking information is uploaded to the 3PL system and synced with your order management software.

1. Inventory management

Managing inventory involves much more than just warehousing your products. A 3PL should allow you to easily sync inventory with your online store, view real-time inventory levels at each 3rd party fulfillment center, and proactively reorder inventory to prevent stockouts.

Once your 3PL receives and stores your inventory, you can check the quantity on hand and units sold per day for each product. This offers full visibility into what is available to ship to your customers at any given time.

Depending on your 3PL’s technology and workflows, you may also be able to push real-time stock counts back to your store’s website, so your customers immediately know if items are out-of-stock.

2. Two-day shipping

Some of the most popular online retailers offer two-day shipping and free shipping options and most customers expect both fast and affordable shipping. 3PL warehouse location can make or break your ability to deliver on customer expectations by storing inventory closer to your shipping destination. Working with the right 3PL can help you offer 2-day shipping to your customers at an affordable price.

Third-party logistics service providers often have relationships with shipping carriers that allow them to negotiate discounted rates for their clients; however, the biggest cost savings for 2-day shipping come from distributing your inventory across fulfillment centers in different regions.

3. Distributed inventory

When working with a 3PL that has several warehouse locations, you can split inventory across fulfillment centers to ship each order out from the 3PL warehouse that is closest to your customer. This model is called distributed inventory.

With the right technology in place, 3PL companies can automate the order fulfillment process using powerful algorithms that route each order to the optimal fulfillment center.

If your customers are geographically distributed across the country, you will likely want to distribute your inventory to multiple fulfillment centers. This puts your inventory closer to your shipping destinations, meaning you can offer guaranteed two-day shipping via ground for customers in those surrounding areas. This can be much cheaper than expedited air shipping. Distributing inventory won’t necessarily be cost-effective for everyone, especially if you don’t yet have a high volume of shipments. As your online business grows, however, having a network of fulfillment centers can help you efficiently reach more customers. Splitting inventory across 3PL warehouses can also help you be prepared in the event that your orders can’t leave a particular fulfillment center (for example, in extreme weather conditions). Distributing inventory also helps with inventory management: When you store products in multiple geographic areas, you will have backup stock if you run out.

There are several benefits of this operational model:

Greater flexibility in product sourcing. When you use an E-Commerce fulfillment business model, you can more easily source products from more than one manufacturer. All your items will be stored in the same warehouse, so orders that include products from multiple suppliers can ship in the same box. This saves on shipping costs.

More control over your logistics operations. You get to choose an order fulfillment partner that provides the services your customers expect.

Faster order fulfillment. You can pick a third-party logistics service with warehouse locations that will get your orders delivered quickly.

Easier returns processing. The 3rd-party logistics warehouse that shipped your products can provide customer service and seamlessly process any returns. This improves customer satisfaction and lets you put products back into inventory quickly.

For more information on the 3PL model please contact the team at the WTC Dublin.

What is IP? IP are the intangible property rights which can be obtained to protect creations of the mind, such as new inventions and modifications, literary and artistic works, the outward appearance of a product, and symbols, names and images used in commerce. The different forms of IP protect different things and provide different rights and obligations. Like other types of property, IP is protected by law which allows the proprietors of such property to earn money or recognition from their inventions or creations, while enabling action to be taken to prevent others from obtaining a benefit from these important pieces of property.

IP is an integral component of any successful business. For SMEs it’s very important to protect any unique products or services to prevent market share loss to copy cats. The link between IP and economic growth has been demonstrated in a joint study carried out by the EUIPO and the EPO in February 2021, showing companies that own IP rights to have 20% higher revenue per employee than companies that do not. This rises to 55% and even higher for SMEs. Protecting your IP protects not just your current marketplace but your future marketplace as it safeguards your ability to expand geographically. Additionally, IP rights can be bought, sold, used as a lien or as security and can generate income through licensing. Identifying and protecting your IP may increase the worth of a business in the eyes of investors.

1. Having an IP Strategy provides a competitive edge in the market. 2. Develop and identify innovation, new designs, new trade marks or new trade secrets (formulas/recipes); 3. Apply to protect the innovation, modification, design, trade mark or to document the trade secret, ideally before it goes to market or is promoted; 4. Renew any existing patents, designs or trademarks; 5. Value your IP, if applicable; 6. Licence or enter in other agreements taking advantage of your IP or collaborate in the knowledge that your

IP is safeguarded; and 7. Police and enforce your rights against infringers, if necessary. MacLachlan & Donaldson has substantial experience working with companies and investors and we understand the time, effort, and resources that go into creating new IP. We understand the need to include IP in any international trade strategy. By working closely with our clients, we can recognise new and emerging IP, and the potential value it can create for a business if properly safeguarded.

ONE OF IRELAND'S MOST EXPERIENCED IP LAW FIRMS

Weengagewithyouto identify,considerand discussyourbrand, innovationordesign. Weassesstheprotection availableforyourIntellectual Propertyandmake recommendations. Weworkwithyouthrough thestagesinvolvedsothat yourvaluableassetis securedandweassistyouin enforcingordefendingthat asset.

MacLachlan & Donaldson is one of Ireland’s leading Intellectual Property firms, having specialized in managing our clients’ rights for more than 50 years. Our highly trained staff of attorneys, and our extensive resources, are dedicatedtoprotectingyourIPinterests.With attorneys in Dublin and Belfast, we are an allIreland firm who can represent your rights in Ireland, the United Kingdom and the European Union, as well as multiple territoriesacrosstheglobe.

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