In the modern age of technology, the concept of a “black box” is one that surrounds us every day. It’s the idea of a system that takes something in at one end, then eventually puts something out at the other end, but the entire process in between is concealed from the viewer–it’s like a black box that you can’t see inside. 

For a good example, you need look no further than the handheld device you use all day long. We input commands and extract information from our smartphones on a constant basis, but most of us have no idea what’s going on within their inner workings.

When Fulfillment Is a Black Box

If your organization contracts with a 3PL provider for fulfillment activities, you might feel like the process is a bit like a black box itself. Your organization puts something in–the products and materials that you supply to your B2B end users–and the 3PL provider puts them out at the other end when it ships them to customers who have ordered them. But what happens in between those two points?

For some organizations, that may not be a question that’s been asked very often. As long as B2B customers are satisfied, orders are fulfilled on time, and the costs aren’t exorbitant, a project manager may be happy to allow the black box to continue doing whatever it does.

In other cases, the question may be asked, but it’s difficult to get meaningful answers. Lack of transparency is unfortunately a common occurrence in the 3PL industry, and organizations that outsource their fulfillment frequently find that it’s frustrating to try to get visibility into the inner workings of their fulfillment partner. 

In either case, the client organization is in a position of not knowing some very valuable information that could make a difference to their internal business processes, capital availability, and high-level strategy. Of course, in the worst case scenario, it’s possible that if the organization were to open up the black box and see what’s really going on in their fulfillment partner’s facility, they would switch 3PL providers right away!

In this blogpost and our next one, we’ll tell you why having a black box for a fulfillment partner is a bad idea. We’ll also introduce you to the ways that Spectra ensures that its clients enjoy a high degree of visibility into what’s happening with their fulfillment process, and what the real, measurable benefits of such a relationship are.

Unknown Costs

The cost of using a 3PL provider for fulfillment is nearly always lower than accomplishing the same tasks in-house. But that doesn’t automatically mean that it’s the best price your organization could be getting. The real-life, practical knowledge and industry experience that are present within your fulfillment provider’s team have an enormous impact on what your services cost. 

Accessorial fees are an extremely common and very expensive, yet usually avoidable, addition to fulfillment costs. This category of extra fees describes charges that trucking companies impose when drivers have to do something out of the ordinary in order to deliver a load to its destination. For example, if a driver arrives at a destination but they must wait for personnel to be available to receive the load, the wait time may trigger an accessorial fee. 

There are also certain types of properties that trucking companies will charge extra fees in order to deliver to, such as military bases or locations with strict security protocols. There can even be fees charged if the driver is required to move freight past the actual loading dock into the building where the load is being delivered. These fees can add up quickly, and if your fulfillment process is a “black box,” you won’t have a way of knowing that they are adding significant amounts of money onto your monthly bill. 

Experience and Anticipation of Fees

Things are different when Spectra is the 3PL provider in charge of your fulfillment. With our team’s knowledge of the shipping industry, we are able to anticipate and avoid accessorial fees for our clients. By knowing what to look out for and what questions to ask, we make sure that our clients don’t get surprised by fees that could have been avoided with better preparation. When there are fees that must be included due to the nature of the delivery site or other factors, we make them clear up front.

The Cost of Inexperience

The specific area of accessorial fees is just one example of a common hidden cost associated with 3PL fulfillment: the cost of inexperience. As a startup 3PL begins working in the industry, there are bound to be lessons learned along the way. That provider may charge low rates for their service in order to attract clients and get traction in the field, but those clients will inevitably foot at least part of the bill for those often expensive lessons! Your organization doesn’t need to be one of those clients paying for on-the-job training for a young 3PL team, but if the fulfillment process is a black box, you could be doing so without realizing it. 

Spectra is the opposite of an inexperienced startup 3PL provider. Our 20+ years of experience in fulfillment position us as true experts in the field, and we’ve proven our ability to serve even large national clients with absolutely dependable service. Signing a contract with Spectra for fulfillment services is similar to gaining a seasoned, fully equipped fulfillment department for your organization overnight. You won’t have to pay for expensive fulfillment mistakes because our team knows how to prevent them from happening. In fact, as we get to know your organization and its processes, we’ll start providing valuable guidance on how you can streamline your fulfillment and add features to better serve your B2B customers.

Check back next time to see even more ways Spectra gives clients visibility into their fulfillment process. Make sure you aren’t putting money into a 3PL black box every month without getting anything meaningful in return!