Heard of 3PL companies and aren’t sure what they are and what types of services such companies provide? If so, then below we’ve shared more information about what 3PL services are and the benefits you’ll enjoy from using them. Read on to learn more!
What is a 3PL Company?
A 3PL or third-party logistics company is a service provider that provides outsourcing services, such as logistics, warehousing, delivery, and so on.
In other words, these companies provide a wide range of logistics services for businesses in supply chain. These services include packaging and freight forwarding, order fulfillment, inventory forecasting, picking and packing, warehousing, and transportation. So are still not sure if your business needs to use a third-party logistics company? Below are some of the reasons why it should.
Reasons for Using a 3PL Service Provider
There are so many reasons why you should outsource your logistics needs to a 3PL provider. The main one being by outsourcing these services, you can focus on other aspects of your business, such as product development, marketing, and sales. In other words, you’ll have more time and resources at hand to grow your business. Some of the other benefits of 3PL companies include:
Cost Reduction
Due to the fact that they mainly focus on logistics, 3PLs have more resources specifically geared towards this aspect of the supply chain. On top of that, leading 3PL service providers work with a network of other logistics companies. This means that they are at a better position to negotiate lower pricing based on volume and order frequency that you as an individual. For this reason, you’ll get to save more money working with them.
Scale Up or Down as Needed
In the business world, demand in products doesn’t stay constant throughout the year. In other words, you’ll get to experience highs and lows in the demand for your products during the year. With a third-party logistics provider, you’ll be able to manage peaks and troughs more efficiently without having to waste resources when demand is low.
Better Customer Experience
Today’s business environment is congested and highly competitive. The smallest thing you do differently that will determine whether you will beat your competition or stagnate. One such area is in the delivery of goods purchased by your customers. Your customers will feel more satisfied if they can receive their orders on the same day they placed them or the next day. Because it has a wide distribution network, equipment, manpower, and facilities, a 3PL will allow you to offer fast delivery regardless of the customer’s location.
