A system known as Third Party Logistics, or 3PL, involves an organization (third party) that provides logistics services to companies that need to manage and distribute their inventory. Usually, companies (customers) without logistics service benefit from the help of a 3PL transportation company. The 3PL will then be in charge of all or part of the activities related to the client’s logistics.
Tasks performed by third-party logistics include:
- Inventory management
- Inventory control
- Transportation and delivery
- Declarations and customs clearance
- Transport logistics
Do you need a 3PL logistics provider for your logistics?
As your business grows and new customers arrive, you may not have the in-house skills to manage and oversee an expanding supply chain. In this situation, transport management solutions offered by third-party logistics companies are essential. You can outsource these tasks and use other services instead of spending a lot of time collecting data, finding a shipping company and organizing shipping.
Do you benefit from renovation services with a 3PL?
Sometimes suppliers ship products in packages that are out of place and do not reflect your brand image. It is therefore up to us to remedy this problem by means of professional packaging (boxes, envelopes, etc.) in order to ensure accurate and timely delivery.
How 3PL works
When working with a 3PL service provider, you are provided with a comprehensive solution, including freight transportation and shipping solutions, warehousing and inventory management.
In most cases, 3PLs do not always purchase their own storage space or fleet of trucks. Instead, these companies work with other transportation providers. When you focus on 3PL implementation, you are essentially contracting a third party to manage your logistics and fulfillment processes.
E-commerce businesses do not have to worry about purchasing or leasing storage space. You won’t have to worry about investing in an armada of trucks either because a 3PL partner can help you significantly reduce your shipping costs.
The reason you want to contract a 3PL warehouse is that it can greatly improve the efficiency and speed of logistics. As orders continue to increase, you don’t have to worry about expanding your warehouse or hiring more employees.
Benefits of Achieving 3PL
Now that you understand the basic meaning of 3PL, it’s time to consider the benefits. As a business owner, if you are considering outsourcing
your supply chain solutions to a 3PL freight company, there are several advantages to doing so. Here are a few.
How to choose the best 3PL supplier
If you are looking for third party logistics, here are some important tips to help you find the best company. It depends on their experience, expertise, deadlines, locations and other assets.
Experience and expertise
Ideally, you should choose an outsourcing company with considerable experience and expertise. When you hire an experienced company to manage implementation, they can ensure that everything is going well and give you advice on how to manage technical requirements.
They are also able to process different types of goods and can deliver orders on time. They ensure that the goods are packaged according to their nature with the appropriate shipping labels so that they are not damaged during transport.
Ideally, you will want to choose a fulfillment provider that can manage the appropriate volume of orders and has warehouses in multiple locations. For example, if you ship across the country, the supplier you choose must be able to ship from multiple warehouses.
If the company has only a few warehouses scattered across the country, this can cause shipping delays. Ideally, you should choose a runtime provider that has multiple storage locations.
In case of delivery delays or shortages, you can contact a customer service representative. You must choose a 3PL supplier that offers reliable customer support. Ideally, you should choose a company that offers dedicated support and has faster response times.
Probably the most important factor to consider is the fees charged by your 3PL provider. Many companies offer discounts with other major shipping companies, and you can get a quote on shipping costs.
You will also receive a quote on the total cost of completing the order.
Compatibility and integration
Ideally, you should choose a 3PL platform that has integrations and APIs available for all major e-commerce platforms. You’ll want to integrate all your sales channels with your 3PL provider to ensure orders are automated and shipped on time.
3PL companies save you a lot of time and money
Now that you have a deep understanding of what 3PL means and a clear idea of how it works, it may be wise to look for local 3PL solution providers in your area.
As an online shop or e-commerce owner, working with a 3PL provider can help you grow your business very quickly. You don’t have to worry about logistics or inventory management; you just need to focus on maintaining the quality of your product.
Many companies partnering with 3PL suppliers have been able to mitigate the global pandemic through their ability to quickly scale back operations. Now, as the pandemic recedes and business activity resumes, these businesses can grow as needed as demand increases.