What are 3PL Warehouse Services and Why Should You Use 3PL?

3PL Warehouse Services

3pl warehouse services refer to 3rd party logistics and these service providers manage every aspect of warehousing and shipping of products from all parts of the world to their warehousing facilities and from there to their final destination. Thus, they manage all the logistics of sending your product to the customer on time.

Services 3PL Warehousing Companies Provide

Get the Product to Facility

Warehouse companies decide on quick and efficient mediums that can be utilized for transporting products.

Store the Products

3pl warehouse service providers manage the logistics of warehousing the product. They collect the product, inspect all the products, and properly sort them to be kept at the facility.

Cloud Based System

These warehouse companies utilize the latest cloud based system for providing order fulfillment service that can be accessed round-the-clock, anytime, anywhere.

Real Time Tracking

These warehouse management companies perform real time tracking for orders. They are always aware of where the product is located in every step of the transportation process until it is delivered to the customer. 3Pl warehouse service providers also send a tracking number to customers so that everyone is aware of the status.

Another good thing about these companies is that they are capable of managing multiple rates, carriers, and transportation services on behalf of their customers.

Different Types of Shipping

Warehouse companies have the competency to meet any kind of requirement you may have. For instance, they can carry out drop shipping to consumers and retailers, perform distribution of marketing collateral, and also undertake bulk distribution.

Manage Logistics

Warehouse management providers have necessary expertise to look into other tasks such as customs clearance, brokerage, and international shipment procedures to make sure the transportation takes place successfully and on time.

Product Returns

3pl warehouse service providers also take care of the task of processing product returns, inspection as well as relabeling products for shipment. Returns can happen and when they do, warehouse companies transform into a pleasant experience for customers.

Benefits of Using 3PL Warehousing Services

There are several benefits of using 3pl services, let us look at them here.

Scale as Required

Suppose your company is planning to get into new markets or introduce more products, the level of inventory and your transportation needs will change accordingly. Usually, it will be difficult to accurately judge the level of distribution or warehousing space that will be required.

When you utilize 3pl warehousing, this problem is solved since you will be able to scale your logistic requirement as and when needed. This way you will be able to mitigate your costs and manage inventory in a better manner.

Integration of Logistics

The other benefit of using 3pl services is that it helps you combine all your transportation and warehousing requirements under one roof. In addition, it becomes possible to send multiple shipments in a timely manner instead of sporadic shipments.

Moreover, many of the 3pl warehouse companies provide deep discounts, which help you reduce your overall cost.

Necessary Experience

For many companies, managing supply chains is not the primary area of expertise, making the whole process difficult to comprehend. On the other hand, 3pl service providers have specialized knowledge of how the industry works, required experience, and a proven process already set in place to manage your requirements.

Access to Technological Solutions

For many small scale businesses it is often difficult to make an investment in advanced technological solutions that are required for implementing a logistic system.

When these businesses utilize warehouse management services, they get the facility of utilizing advanced systems such as radio frequency identification without the need to make large investments.

By using these services small business are able to create a competitive edge for their business and easily compete in the marketplace.

Low Capital Investment

Purchasing warehouse space and setting up the distribution infrastructure means you will have to make a considerable capital investment. If you make this  investment, then you may tie up your cash flows and may have to face financial instability. Moreover, for growing and expanding you will have to make further investments.

You will be able to eliminate these risks when the transportation and facilities are owned as well as operated by a 3pl warehouse provider and you get the opportunity to expand without having to investment your capital.

Save Time

You will not have to spend time of tasks such as hire additional employees, make arrangements for transportation, build warehouse, or set up technologies.

In addition, you will not have to focus on other tasks such as billing, paper work, staffing, training, audits, and optimization that are an integral part of any supply chain.

Explore New Markets

By using services of warehouse companies you will be able to set up your supply chain in markets where you do not have any base.

3pl warehouse providers offer you access to distribution centers and warehouses in all different regions so that you can serve new customers in those regions and create a leading edge for your business compared to your competitors.

Utilize a Network of Resources

3pl warehouse providers already have a large network of resources for you to utilize. This way you are able to quickly expand your supply chain without having to invest a lot in setting up the process.

Moreover, these warehouse companies have good professional relationship with other companies in their network. This provides you a chance of getting a volume discount from 3pl providers so that you can reduce your overhead expenditure and at the same time provide timely service to customers.

As a final note we can say that if your company requires warehousing as well as distribution services then using 3pl services will be the right option for you. You will be able to manage your inventory, utilize experience, combine shipments, and have more capital with you to serve your customers better.

3pl warehouse management companies can take care of your inventory management, assembly, storage, packaging, shipping, and all other similar needs so that you can focus on more important tasks.

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