When you are an e-commerce company, you need to consider how you are managing your inventory, storing it, picking and packing items that are ordered by customers and shipping them to the customer. Most companies outsource these services to other companies that specialise in these logistic services. This is where 3PL companies come in.
3PL or Third Party Logistics companies provide the basic services mentioned above as well as certain specialised services such as freight forwarding, reverse logistics that take care of returns, consolidation and deconsolidation. When you are a start-up business that provides products to a customer, you need to think about how that product is delivered to the customer quickly and efficiently. With time, your business will grow and the demands of the customers will increase. This will affect your logistics as well. You will need more space to store items and with the scale of the company, your existing space may not be enough. This is the reason that most companies choose a 3PL company as they will be able to provide warehousing solutions with integrated inventory management. 3PL companies are built for flexibility and they will be able to adjust to the scaling f your company. This way, you can simply increase the storage space that you are using and there will not be a drop in the sales in the time taken to adjust to the changes. 3PL is able to provide you with the right resources at the right time so that you can grow at a healthy pace.
In addition to resources like storage space and transportation vehicles, 3PL companies bring a lot of expertise in the field. They have been carrying out this practice for a long time so they will be able to recommend innovative logistics solutions that are customised to your company and requirements. They will have a thorough knowledge of handling all parts of the supply chain and this includes complying with all regulations that apply to you such as safety regulations. When you have fewer problems in your supply chain, you can ensure that your customer gets good service. All of this ensures an improved customer experience. This is what ensures that your customers remain loyal to your company. You will be able to provide next day delivery and efficient free returns for the products and exchanges. These are easily made possible with an experienced 3PL provider.
Saving costs is a priority for all companies and a 3PL company will look at how this can be done throughout all aspects of the supply chain without affecting the overall quality of the product and the service. So you can look for affordable warehousing solutions and lower delivery rates. Because this service is outsourced, you don’t need to train your own staff to carry out inventory management, packaging etc. If these services are done under your company, you will need to carry out extensive training for the employees and this will require a huge cost. When you are using a 3PL company, they will have their own trained and expert staff that has sufficient experience in the industry to take care of your logistics.
