3PL or third part logistics basically involves having an external operator look after logistics for your business, this can include everything from storage and warehousing right down to delivery and returns. A 3PL provider will allow you to outsource a lot of the costly and time-consuming parts of running a business and allow you to focus on the parts of your business that are the most important, like your core business functions.
3PL service providers are capable of performing a lot of different tasks and functions for your business, from transporting and delivering your goods, to inventory management, pick and packing and freight management. There are many benefits to having a 3PL company work for you. Read on below to find out more.
What are the benefits of 3PL?
Using a third-party company can be a great choice if you’re looking to improve productivity or want to grow your business. 3PL providers free up time for you to focus on your main business activities and can help to improve efficiency which can drive growth. Additionally, outsourcing logistics can be a cost-saver for a number of reasons. First of all 3PL providers will reduce the amount of time your staff need to spend on non-essential business functions, secondly, they can often leverage relationships with large shipping companies to get better prices, additionally, you will only pay for what you need. One of the best things about working with a 3PL company is that they are flexible to seasonal demand. This means that you’ll only pay for warehouse space that is required and they will be able to scale their services up or down depending on your needs. This is an excellent option as it means you will not need to front the capital for a warehouse space that won’t be used to capacity year-round. It’s a much more cost-effective and efficient choice and provides much more versatility to the way that you run your business.
Providers also make shipping much faster and make it much easier for businesses to get a smooth, streamlined process in place. One reason that many people choose to go with a third-party provider is that they already have great systems and processes in place which can make is way simpler to get the good infrastructure in place and to keep your customers happy. Instead of having to try and set up all new systems, all of the processes will be ready to go which means you can get up and running much faster.
Third party logistics providers are also known for being experts in their industry which means you’ll benefit from having great guidance and advice from people who really know what they’re talking about. This makes it much easier for many business owners to navigate logistics as it’s an area where many people feel out of their depth and overwhelmed.
There really aren’t many disadvantages to working with a third-party provider. Almost every business will find it more cost-effective than bringing infrastructure in-house.
Finding the right provider
So, who should you choose? Getting a good third-party logistics manager means shopping around. You’ll want to find an operator that can meet your needs in terms of warehouse space, inventory management and shipping turnarounds. It’s important to find a provider with a good reputation for customer service and efficiency. A good provider can make your life much easier, but a provider with a poor reputation for service quality will be more of a headache than it’s worse. Take your time to do your homework and speak with them in detail about your needs.