How Can Third-party Logistics Benefit Your Business?

Third-party Logistics, also known as 3PL Logistics, offers a logistic service to businesses, to manage certain aspects of a company’s shipping operations. Offering 3PL Logistics Melbourne wide and beyond, Brand Services guarantees business improvement with outsourcing eCommerce logistics process.

What is Third-party Logistics (3PL Logistics)?

Third-party logistics, also known as 3PL Logistics, refers to the act of outsourcing logistic capabilities, involving the business, the logistics provider, and the shipping carrier, making it a three-party contribution. A 3PL Logistics company is able to connect with another company to manage warehousing, monitoring, and distribution, providing improvements in productivity and cost-efficiency. This trend began in the 1970s, with many companies seeing the advantage of outsourcing inbound and outbound logistics services

What Does it Entail?

3PL Logistics entails the hired provider working with your company to help you improve your logistic services. This can include only partial control or full control, using their own separate shipping company, warehouse, production line and more to improve the company’s service success. This workload will be sent back to your business system to showcase the performance but will be in the hands of the hired provider to control it

What Services Can be Beneficial for Businesses?

For 3PL Logistics, many providers offer a flexible customized service, providing the specific needs of each client. Here are just a few examples of how 3PL Logistics can help your company improve

Warehouse Space:

Renting out an entire warehouse can be expensive, and for many companies, it is not necessary. 3PL Logistics providers offer shared warehouse space, allowing them to manage your storage, shipping packages, or products without you having to pay an arm and a leg for rent

Inventory Management:

Managing inventory doesn’t just involve storing your products in the corner of the room but involves a complex technological system that monitors your intake and outtake. Managing both the supply and demand of your products, by syncing your inventory with your online store in real-time. Helping you organize your production as well as your success

Distribution Zone:

Due to many 3PL Logistics providers owning multiple warehouses in various locations, outsourcing your shipping and production line can help you maximize your distribution zone as well as lower your shipping costs.

Additional Staff:

Instead of hiring your own additional staff, companies can outsource a wide selection of workers to help perform the specific tasks associated with order fulfillment. This can include shipping staff, production workers, warehouse workers, and more.

Freight Forwarding:

A lot of the time, companies will use shipping carriers for their delivery of goods, with the cheapest option typically chosen. However, due to the decreased price, many of these carriers will do a poor job, leading to the business being blamed for the mistakes made by the delivery companies. A good 3PL Logistics provider will be able to choose a high-quality carrier that offers the best combination of price and delivery speed, decreasing the chance of delivery issues

Advanced Shipping:

Due to warehouse numbers, local carrier connections, daily deliveries, and more, 3PL Logistics providers will be able to deliver better and more advanced shipping options for a business. Enabling a company to offer multiple shipping options, such as express, next-day delivery, or free shipping benefits. Without having to sacrifice profit to compete with other companies offering these deals

Shipment Tracking:

The majority of online delivery services offer tracking options, allowing a customer to monitor when a package will arrive at them. 3PL Logistics will be able to manage the tracing and tracking process for a business, helping you avoid multiple customer calls or complaints

Returns:

Not only does 3PL Logistics offer shipment services, but they can also assist in returns. Helping with complaints, shipping, and return labels.

We hope you have a better understanding of third-party logistics and how it can assist a company’s order fulfillment processes. Take a look at Brand Services website to see how you can see 3PL Logistics providers to choose from today. Browse through our different services or contact our friendly and informative team now to learn more!