How third-party logistics can save your growing e-commerce business
From mature physical enterprises to newly established online retailers, the trend of outsourcing logistics continues to grow. Third-party logistics professionals (3PL) can solve various logistics challenges encountered in the omni-channel retail environment.
The role of logistics in the e-commerce environment is critical to success-now more than ever. Read on to learn more about 3PL and what it can do to help you determine if it is a smart choice for your e-commerce business.
3PL Relationships and Suppliers
3PL suppliers provide more than just transportation assistance. As technology continues to advance, many suppliers are now expanding their services beyond freight integration and merchandise by combining them with contracts and public warehouses. Some companies also provide various types of cargo transportation services for their customers.
third-party logistics services are the ideal choice for any e-commerce company seeking to improve efficiency, accuracy and support growth in any industry. These services provide the support needed to make the business more successful now and in the future.
Benefits of 3PL
Your company can obtain multiple benefits by using 3PL services. The biggest advantages include:
These companies have mastered the latest development and progress of overall logistics. By using these services, you can leverage supply chain expertise while focusing on core competencies.
Use a better and more powerful resource network
Most 3PL companies today have a huge resource network that can generate a huge advantage in the internal supply chain. If you use the resource network of any 3PL supplier, you can be confident that all steps in the supply chain are optimized and executed in a cheaper and more efficient manner.
Build capital and time
The right 3PL company can help you eliminate investments in personnel, technology, warehouse space, and transportation. They can also help avoid costly mistakes and help your company build a stronger logistics network that provides lower risks and higher returns.
Continuous improvement and optimization of your supply chain
The 3PL service providers you hire can use their resources to make adjustments and continuous improvements to ensure that your supply chain achieves excellent growth and higher efficiency.
Disadvantages of 3PL
Although there are many advantages to using 3PL services, you should also consider the potential disadvantages of these services.
Lack of process control
If you have no control over the flow of a process, problems may arise. If something goes wrong with your 3PL service provider, it may damage your company’s reputation.
In this service, the two companies are working towards the same goal, but if the communication fails, the whole process will also fail. In the long run, this may cause delivery failure.
3PL service provider fees vary from provider to provider. Each provider has its own unique billing method for the services provided. Some people use inline fees to describe each function, while others combine multiple functions into a combined fee. Before signing the contract, be sure to inquire about the cost and fee structure. It’s also a good idea to get estimates from multiple service providers so you can find the service provider that provides the most value.
Choosing the right 3PL provider
One of the best starting points for finding a 3PL provider is Thomas Net. Here, you can find a wide range of service providers, and can narrow your search based on specific circumstances such as materials, industries, and other factors. The key here is to find a company that can provide the services your business needs-don't settle for any service provider without first figuring out their focus.
If you are trying to achieve new growth and want to ensure that you can provide a great customer experience, then 3PL vendors can be a very valuable resource.