1. What are 3PLs and what do they do?
3PL (third-party logistics) is a service that allows businesses to outsource their logistics to a third-party operator. A 3PL partner collaborates with businesses to ensure that their goods are delivered to the purchasers on time.
A third-party logistics company’s operations are very sophisticated and critical to an eCommerce company’s success. Working with a 3PL company helps you to stay competitive in the marketplace. While the process from picking and packing to shipping is complex and costly, a third-party logistics company can take care of this process and allow you to focus on your core business.
A third-party logistics (3PL) partner specialises in overseeing the entire supply chain process. Partnering with a 3PL will eventually assist your company in optimising the fulfilment, distribution, and shipping processes in order to increase cost efficiency and effectiveness. In addition to shipping and distribution, a 3PL company’s services can include procurement outsourcing, freight delivery, warehousing, inventory and supply chain management, and much more.
2. Why use Third Party Logistic Services?
If your business is doing well and growing fast, and you have experienced some difficulties in supply chain management, then it’s time to hire the best 3PL provider. You can outsource your order fulfilment operations to the best third-party logistics suppliers and focus on growing your business.
To choose the right 3PL logistics provider for your business, you need to first figure out what sort of services you will need for your company. A full end to end service includes transportation, receiving goods, warehousing, product storage, order distribution and delivery may be good if you run a large company that handles high volume orders. While a small firm, on the other hand, likely only requires one or two of the services listed above. Knowing what service works for your business the best, will help you find the right 3PL provider to meet your business requirements. Partnering with a third-party logistics provider will help you focus on growing your client base with great customer experiences or entering new markets. Whether you are large or small, the expertise of a 3PL partner can improve your supply chain and achieve a competitive advantage.
3. What are the benefits of using a 3PL?
The following are five key advantages of 3PL in supply chain management:
- Cost-cutting Initiatives
Third-party logistics companies specialise in logistics and supply chains. As a result, they tend to have a larger network and may have more influence during negotiations. That means they are capable to assist their clients in cutting overhead costs by lower transportation and shipping costs and receiving larger volume discounts. There’s no need to make large infrastructure investments if you are working with a 3PL supply chain management provider, as they provide transportation services with tracking technology, warehouse space and inventory system, and staff and service support.
- Have Expertise and Experience at Your Fingertips
It’s difficult to predict and accommodate internal expertise in all the capacities and geographies required in today’s complex global market landscape. Transport paperwork, import and export, international compliance, and international compliance and economic regulations, for example, are all areas where a 3PL service provider has knowledge and experience. Businesses wishing to grow into foreign markets can benefit from their partner’s logistics expertise and know-how, which can reduce costly delays, shorten cycle times, and make the transition into a new region easier.
- Obtain greater adaptability and scalability
The fact that a third-party logistics company has the expertise in supply chain management gives businesses greater flexibility and scalability to use supply and distribution capabilities as needed. When sales are weak, there are no redundant investments or underutilised resources, and when demand spikes, businesses can scale up.
- Concentrate on your core competencies
Outsourcing logistics allows your company to focus on its key strengths rather than managing non-core yet vital operations. Without employing internal resources, your company can benefit from the logistical expertise offered by a 3PL company.
- Enhance Customer Satisfaction
All of the aforementioned 3PL advantages will result in better services and response times, on-time and fast deliveries that eventually increased brand reliability. This translates to satisfied consumers, which is the ultimate goal of any business.
The role of third-party logistics in supply chain management is to drive business growth by giving their clients access to markets where they don’t have an established presence. Being able to manage inventory in a new market without having to make a significant investment in warehousing, equipment, technology, and labour, as well as the effort of learning the logistical nuances of a new market.
Are you looking for a 3PL partner in Canada? You’ve come to the correct place. By offering infrastructure and much-needed knowledge, SPExpress Fulfillment assist businesses in simplifying their shipping procedures. Check here to know more about our services.