What is a 3PL?
A third party logistics provider, also known as 3PL, refers to the outsourcing of logistics services. In short, a 3PL is an outsourced transportation company that manages a businesses logistics operations and supply chain. They assist with the warehouse and distribution needs for their customer’s inventory and fulfilment needs ranging from storing, picking, packing and shipping.
What are the benefits of 3PL?
There are many benefits to using a third-party logistics company for a variation of businesses across many industries. These include:
Cost Savings
One of the main advantages of using a 3PL includes the potential cost of savings. Though some businesses may consider outsourcing their logistics may be too expensive, there are many areas where they are able to save money. Due to the high volume of order frequency and multiple customers they work with, many 3PL’s have access to lower shipping rates with a variation of haulage options – providing you with the leverage over individual shippers.
Another cost saving advantage of using an outsourced logistics company involves their ability to provide warehousing and suitable staff to carry out the work. With a 3PL, the warehousing space is provided, which reduces the amount of time most businesses use trying to find an affordable and suitable space. As with warehousing and logistics, finding an efficient and trusted workforce can also be costly. With a 3PL this is already provided, which helps you mitigate any risks of staff turnover or financial loss during high seasons.
Scalability and Flexibility
A key advantage of using a third-party logistics company in supply chain management allows businesses the scalability and flexibility to utilise supply and distribution based on their current business needs. Using a 3PL allows business to scale their space, labour and transportation depending on their current inventory requirements. If sales are down, there is no surplus investments and if sales are high or there is a surge in demand, businesses can upscale. A 3PL can ease the transition between high seasonal periods and industry fluctuation.
When a business is looking to expand and scale into new markets, a 3PL is able to aid growth into new regions by providing the tools and technologies necessary to make adjustments to new business climates which could potentially be a challenge if managed alone.
Knowledge and Expertise
For many businesses, supply chain management can be the most complex aspect and often with the most challenges. Particularly when shipping internationally. 3PL’s are experts in supply chain logistics who specialise with fulfilment, warehousing and transportation of goods to help businesses streamline their processes and optimise their supply chain. With the advantage of years of knowledge and expertise, a 3PL can also assist with complying to international shipping protocols and documentation to make international shipping much faster and easier than with individual shipping companies.
Customer Satisfaction
For any business, the most important element is the customer. Customer experience and satisfaction comes hand-in-hand with how your business is perceived and received. With the advancements of ecommerce and reviews sites, customers expect their goods to arrive on time and in perfect condition. Using a trusted 3PL can help determine a business’s customer service and customer satisfaction. A 3PL has the ability to offer a wide range of delivery options and prices along with quick and easy returns and exchanges to provide a better customer experience.
Why choose Lesters Logistics for your chosen 3PL?
Here at Lesters, we are experts in providing logistics and transport. We continue to provide improvements to your logistics process for greater efficiency throughout your supply chain management. To see how we can help you, get in touch with our helpful team today.
