The Top 5 Benefits of Using a Third Party Logistics Provider
3PL companies offer an all-in-one solution, including transportation, warehousing, picking and packing, inventory forecasting, order fulfilment, packaging and freight forwarder.
When you have spent many days and perhaps years building your online store, the decision to outsource to a third-party logistics company, can be a daunting one. However, there are a lot of benefits to be considered.
Here we list what we believe are the top 5 benefits of using a 3PL provider:
Save Time and Money
Outsourcing your logistics will save a tremendous amount of time and money for your company. For example, using a 3PL provider will eradicate the need to invest in warehouse space, installing new or upgrading existing technology, transportation, or even labour costs to carry out the fulfilment and logistics process. 3PL providers afford you the opportunity to build a global logistic network with lower costs, lower risk and higher returns. Furthermore, it saves you time and allows you to focus on other priorities associated with growing your business. There is no need to worry about paperwork, courier management, billing, returns management, training, staffing, and all other the activities that require optimisation in order to get your products to where they need to go.
Scalability and Agility
Another benefit of using a 3PL provider is that it gives you the ability and flexibility to scale space, labour, and distribution according to your exact needs. The best 3PL providers are constantly trying to find ways to use the fastest, most efficient, and cost-effective methods to deliver the best experience for your customers. Small brands can really benefit from this access to a higher quality service. 3PLs also understand your industry and are particularly useful when it comes to your brand growing into new regions without barriers. It’s far easier and more effective for a company to scale it’s fulfilment requirements by using a 3PL. When increasing order flows and growing into new markets, a 3PL partnership will help you to maximise profits, reduce delivery wait times, and improve customer service.
Access Knowledge and Expertise
Partnering with the right 3PL provider will also give you access to the best expertise and knowledge, which can help to guide the way that your logistics operations operates. This includes guidelines about order configuration, pick-up and delivery windows, scheduling, equipment, etc. Understanding customer needs and communicating them to carriers can make a monumental difference in performance. Not only does it allow you to access customised and relevant thought leadership, but it can help to save costs as that expertise isn’t required to be hired internally.
Improve Last Mile Customer Service
3PL’s are able to focus on the logistics side of things, it’s their bread and butter. They aren’t distracted by other areas of the business such as marketing, or product development for example, which means that they are able to focus on providing the best possible service to your customers. If issues do arise, the 3PL is closer to the problem and will be able to find a solution more quickly. The best 3PL or fulfilment partners, treat your customers like they are their direct customers. Therefore, with added attention to detail, your customers will benefit from an improved service.
Better Business Resilience
Supply chain management is complex, very complex. Those who have worked in logistics will know how common it is to encounter issues, whether it be breakdowns, rising container costs, misplaced products etc. For a company that doesn’t have access to the resources of a 3PL, these type of charges can cause huge disruptions, and a drain on existing resources. 3PL providers will have encounterd and have extensive experience in dealing with the many hiccups of logistics. As long as you are understanding, the 3PL will take care of the issues, and give you a peace of mind and make your business more resilient.
Scaling a business is about building the right partnerships. The best 3PL providers will remove the headaches of logistics, and will allow you to focus on the core competencies whilst they leverage their technology, network and expertise, which will ultimately allow you to reach your full potential as a company.