How Can Pick & Pack Services Help My Business?

March 21, 2019
|In Contract Manufacturing
|By ksand-support

What is pick and pack?

Pick and pack services, often referred to as “3rd Party Logistics” or “3PL”, is where specific amounts of various products are picked from palletized product in the warehouse to create a precise order quantity for the retailer or consumer. The picked product may be a mix of different products or just one product. These products are packed on pallets for retail stores or boxes for on-line consumers and then shipped utilizing the manufacturers negotiated rates for a variety of shipping types and companies.  

How can pick and pack help my business?

Pick and Pack Distribution is very beneficial for companies in the beauty and personal care industry with retail customers who utilize contract manufacturing. Whether the destination is a retail store or an individual consumer, pick and pack is a cost-effective and efficient way to get the exact quantity of your product required from the warehouse to the consumer. With the rise in the number of independent personal care and household goods companies who have set up virtual businesses and use contract manufacturers, pick and pack distribution services are ideal.

How is pick and pack beneficial?

Cost—Having pick and pack services in the same facility where the product is manufactured and warehoused will save the cost of shipping the product to another warehouse and paying the in and out fees of the additional warehouse.  And you will save the cost of staffing required to distribute your products if your preference is to have your products delivered to your own warehouse from the manufacturer’s warehouse.

Time—The process is part of the everyday operations of some contract manufacturers who use the expertise of their staff to process many small orders so your requests get processed and assembled quickly and accurately. As a matter of fact, pick and pack services performed at the manufacturer typically takes one to two weeks of time out of the supply chain as well as one to two weeks of holding costs at another warehouse. That time savings is composed of:

  • 1-2 days for contract manufacturer to prepare the shipment
  • 1-3 days transit time
  • 1-5 days for 3PL to receive the products and enter into their computer systems