How to reduce your shipping costs using 3PL warehousing?

reduce shipping costs

The use of services of warehouse companies can help you in several different ways. Our aim here will be to analyze the benefits of using services of 3PL warehouse providers.

Benefits of Using 3PL Warehouse Services

Benefit #1: Consolidation of Shipments

Here, economies of scale come into picture. High-volume freights help 3PL providers get better rates as its consolidates several orders together. In addition, if you are not using 3PL warehouse services, the onus is upon you to search for ways by which you can get the goods to their destination through the use of various transportation methods.

As such, it will be quite difficult to take care of all the logistical issues that will arise. The benefits of using services of a 3PL company is that they have the competency to manage all the complexities and pass on the savings to you in the form of lower charges.

Benefit #2: Lower Expenditure on Labor

Labor expenditures usually take up a major chunk of overall logistic costs. When utilizing services of warehouse companies you will be paying only for labor that you would require.

On the other hand, with your own staff, it will be necessary to train them continuously, and the availability of work may not always be consistent.

Benefit #3: Better Kitting and Assembly

Product bundling which is also known as kitting refers to a process where related items are packed together to create a ready to ship single item. At the time that the multiple items of the kit are prepared for shipment, the process is known as assembly.

This process of assembling products together offer the benefit that each individual item is not independently weighed and in addition, labels can also be printed well in advance. This helps in making the fulfillment process quicker as well as less expensive.

Benefit #4: Enhanced Inventory Management and Control

Providers of freight forwarding services in Montreal have expertise in inventory management methods. These methods may include the use of various postponement strategies that distribute products only when a customer’s order is received.

This proves to be an effective as well as efficient technique of deploying your inventory. In addition, they also make use of different tools for tracking inventory, bringing transparency into the whole process.

Benefit #5: Improved Utilization of Warehousing Technology

3PL warehouse providers utilize advanced technology to streamline its work process. They make use of warehouse management systems, order management systems, as well as transportation management systems to improve the quality of service they provide. Use of this technology makes it possible for you to make an allocation of inventory in varied locations and also easily keep track of shipments and inventory.

Moreover, cloud based systems help in data access from any part of the world, irrespective of whether the person is using a computer, tablet, or smartphone. This way you get the assurance of having greater control and visibility over a complete logistical chain.

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