3PL Company Services: The Benefits and What to Expect
Benefits of Using 3PL Company Services
If you have been wondering how a 3PL service can help your ecommerce business, you are in the right place. Here you can find a summary of the benefits of partnering with a 3PL company.
What is a 3PL Company Service Provider?
A 3PL company can provide a wide array of services, ranging from storage and distribution to order fulfillment and transportation. All these services provided by the 3PL help in maintaining the supply chain of an ecommerce business. Since these companies simplify these processes, many online businesses rely on their services all around the world.
What are the main services one can expect from a 3PL?
The following are the basic services that a third-party logistics provider can offer:
1. Procurement Services
The first step a 3PLs can handle the procurement of products from other distributors and suppliers. They will manage the inventory on behalf of the ecommerce business. If the inventory gets low,they will place an order with the supplier. They also receive the goods and manage their storage.
2. Storage and warehousing
Next thing to consider is your storage and warehousing services are often provided by 3PL companies. You can choose between contract warehousing, public warehousing, high-security storage, and specialist storage based on your specific needs and products.
3. Order fulfillment services
Another function of a 3PL company is order fulfillment. This means when a customer places an order from the ecommerce website, the 3PL provider receives it, packs the product, and then makes the necessary shipping arrangements for the order to get to the customer. As a result, the client order is delivered ontime!
4. Transportation/ distribution services
Another type of service that can be provided by your 3PL company is the distribution and transportation of goods. However, not all 3pl are set up to handle this. This can mean transporting goods between warehouses or dropping them off to the appropriate shipping carrier.
Reasons to Hire a Third-Party Logistics service provider
Flexibility and scalability
Partnering with a 3PL allows for more flexibility and scalability in supply chain management. They are equipped with all the resources needed to generate a smooth distribution pattern. If your product line grows, they can provide you with more warehouse space without you having to move your operation. As your company grows and has more orders coming in, they will already have trained staff available to handle the load.
Increased customer satisfaction
For an ecommerce company, it is essential to their reputation that their products are delivered to their customers on-time and well-packaged. Satisfied customers mean your brand has more credibility. This will allow you to obtain more loyal customers through word of mouth. 3PLs are here to manage all the details of your order fulfillment to keep your customers happy.
Cost-effectiveness
Since 3rd party logistics companies specialize in logistics, they often have many connections, which can be useful in getting your costs down. When using a 3PL, an ecommerce business does not have to invest in their own warehouse space and the necessary equipment to store its inventory as this is something that is already provided for them. They also don’t need to hire and pay their own employees to do the picking and packing of their products, instead they can rely on a company that specializes in completing these tasks efficiently and accurately.
Focus on the business
Upon hiring the services of a 3PL provider, you will no longer have to spend time and energy on supply chain management and related operations. You can focus completely on decision-making and driving your business forward. Overall, 3PL service providers make it easy to run an ecommerce business. It is often best to partner with one as soon as the business is set up and ready to run. Partnering with a 3PL from the beginning will help you createa positive reputation for your brand faster and allow you to focus on bringing in the orders.
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