What to Look for When Choosing a 3PL for Your Supplement Business: Key Considerations for Supply Chain Leaders

As a vitamin and supplement company, having an efficient and scalable supply chain is critical. The demand for vitamin and supplement products continues to increase as people are becoming more health conscious and consumers rely on having their supplements exactly when they need them. The latest industry reporting has calculated the market size for 2024 to be at $56 billion and projected growth by 2034 at $115.5 billion.

With this focus in health and wellness, many vitamin distribution companies elect to partner with a third party logistics provider (3PL) for their supplement fulfillment to obtain the efficient and scalable supply chain they require. However, selecting just any third-party logistics provider won’t cut it. The right 3PL for supplements can streamline your operations, reduce costs, and improve customer satisfaction. Choosing the wrong partner can lead to inefficiencies, regulatory challenges, and lost sales. As a supplement brand, understanding what to look for in a supplement fulfillment company is crucial. Here are some key things to consider.

Specialization in Supplement Fulfillment

One of the first and most important factors to consider is whether the 3PL has experience specifically in the supplement industry. A supplement fulfillment company must understand the unique requirements of handling vitamins and dietary supplements, such as temperature control, inventory management, and compliance with FDA regulations. Choosing a 3PL that specializes in supplement fulfillment ensures that they are experienced with industry-specific requirements such as:

• First expired first out (FEFO) inventory management practices
• Last in first out (LIFO) inventory management practices
• General expiration date management
• Lot control and management for vitamin order fulfillment and product recalls
• Experience with managing product recalls

Compliance and Certifications

Regulatory compliance is non-negotiable in the supplement industry. Your 3PL partner should be well-versed in FDA guidelines, cGMP (Current Good Manufacturing Practices), and other relevant regulations. They should also operate according to quality management standards that demonstrate their commitment to maintaining high operational standards. Verify that their supplement warehouse storage facilities are regularly audited and that they have a robust quality assurance process in place to minimize the risk of non-compliance. Additionally, your 3PL partner should be able to accommodate traceability requirements – both physically and systemically.

Technology and Integration Capabilities

Efficient vitamin order fulfillment and inventory management are vital for your business. Ensure that the 3PL you choose uses advanced technology to manage their operations. This includes warehouse management systems (WMS), order management systems (OMS), and integration capabilities with your existing ERP or e-commerce platforms. Seamless and accurate integration can help avoid interruption to your operation and compliance issues. A supplement fulfillment company that offers real-time visibility into your inventory and order status can help you make informed decisions and respond quickly to market demands. The technology your 3PL uses to manage your operation should be able to also manage the product and shipment data for traceability requirements.

Scalability and Flexibility

Your supplement business may experience seasonal fluctuations or rapid growth, so it’s important to choose a 3PL that can scale with you. The 3PL should have the capacity to handle increased order volumes without compromising service quality. Additionally, they should offer flexible solutions tailored to your specific needs, whether that involves custom packaging, kitting services, or special handling requirements for high-value products.

Locations and Distribution Network

Any 3PL that you evaluate for supplement warehouse storage should have FDA-regulated warehouses. They should adhere to state-specific requirements for FDA regulations. Failure to comply can result in an interruption to operations. Also, the geographical location of your 3PL’s facilities can significantly impact your shipping times and costs. Opt for a supplement fulfillment company with multiple strategically located warehouses that allow you to reach your customers quickly and cost-effectively. A well-established distribution network, including partnerships with reliable vitamin distribution companies, is essential for ensuring timely delivery and optimizing shipping costs.

As international trade continues to be a focus area of growth, be sure to partner with a 3PL who can ship your product internationally. Your vitamin order fulfillment partner should provide the same capabilities for international shipping as they do for your domestic shipping.

Omni-channel Distribution Capabilities

Ecommerce and direct-to-consumer may have been the channel responsible for growing your business, but retail also offers a significant opportunity for growth. Most of the largest retailers in the U.S. have vitamins and supplements on their shelves, and there are also countless smaller independent specialty retailers.

Expanding your sales channels to an omni-channel strategy to include ecommerce and retail presents endless growth potential. Choosing a supplement fulfillment company that has experience and expertise in fulfilling ecommerce and retail orders will enable you to successfully navigate an omni-channel strategy.

While expanding into retail is a significant first step, managing multiple retailer requirements – which differ from retailer to retailer – is the challenging part. It becomes even more challenging with regulated products. This makes it even more critical to identify a 3PL partner who has experience shipping to multiple retailers, and it is a bonus if they are already shipping to the retailers you are seeking to partner with.

Kitting and other value-added services are also something to consider. Creating product bundles and variety packs – which can differ by retailer – is common in ecommerce and retail channels. Whether kitting to stock or for promotional needs, kitting can be tricky and quickly erode your profitability if not performed the right way. Your 3PL partner should have experience and established processes for efficient and accurate kitting services.

Customer Service and Support

Strong customer service from your 3PL is essential for maintaining smooth operations. Look for a partner that offers dedicated account management and has a reputation for responsiveness and problem-solving. In the event of an issue, having a reliable point of contact who understands your business can make all the difference in resolving problems quickly and minimizing disruption.

Security and Risk Management

The security of your products and data is paramount. Ensure that the 3PL has robust security measures in place, including physical security at their supplement warehouse storage facilities and cybersecurity protocols to protect your sensitive information. Additionally, major retailers require anti-theft measures for the products they put on their shelves. If you’re shipping to these retailers, your 3PL partner should be able to help you adhere to those unique requirements.

Lastly, inquire about their risk management practices, such as disaster recovery plans and insurance coverage, to safeguard your business against unforeseen events.

Optimize Your Vitamin Order Fulfillment with FIDELITONE

Choosing the right 3PL for a supplement or vitamin business is a decision that requires careful consideration. By focusing on specialization, compliance, technology, scalability, location, fulfillment capabilities, customer service, and security, you can select a partner that will help you achieve your operational goals and drive growth. As a supply chain leader, investing the necessary time in evaluating potential 3PLs will pay off in the form of a more efficient and resilient supply chain, ensuring that your vitamin or supplement business thrives in a competitive market.

To learn more about FIDELITONE’s vitamin and supplement fulfillment capabilities contact us today for a free consultation.