What is the Biggest Advantages of 3PL

Working with a third party logistics provider offers many advantages. Let’s take a closer look at the benefits of using a 3PL.

Gain expertise and knowledge
Supply chain logistics can be complex; fulfillment, warehousing, and shipping all come with major challenges. When it comes to supply chain logistics, 3PL organizations are experts and can impart clients with their experience and connections to quickly streamline processes.

Additionally, 3PLs can give insight into issues that can come up when shipping internationally. Such issues include documentation, customs, duties, and differing shipping regulations. Working with a third party logistics organization can also relieve the stress of trying to comply with international shipping protocols.

Save time and money
Using a 3PL can potentially eliminate the need to invest in warehouse space, technology, transportation, and employees to carry out logistics processes, allowing for more focus on your core competencies.

Additionally, 3PLs can make organizations proactively aware of supply chain mistakes that could be costly and risky. By providing industry forecasting, 3PLs also help optimize inventory levels and save on inventory holding costs.

When working with a 3PL, organizations can also save time by receiving the expertise needed to carry out supply chain logistics efficiently.

Scale operations and be more flexible
When a company uses a 3PL, they are able to scale space, labor, and transportation according to current inventory. Additionally, 3PLs are often able to ease the transition between seasonal periods and industry fluctuation.

When growing into new markets, a 3PL aids growth in new regions. Typically, 3PLs are always looking for ways to improve aspects of supply chains and therefore have the tools and technologies necessary to make adjustments. Management software can analyze and monitor supply chain procedures to eliminate inefficiencies. Engaging 3PL services are likely to result in continuous improve

Order Fulfillment Costs are Rising, where?

Your Fulfillment Costs are Rising
Many startups bootstrap their operations to conserve resources in order to retain greater control while growing the business. This is great because you focus on the core aspects of your business, but it necessitates you to look past initial costs and take into consideration the bigger picture of outsourcing fulfillment. Does your business require you to scale quickly to maintain a competitive advantage? Or will you benefit by having a logistics partner? By bootstrapping fulfillment, you may miss out on the extensive network that a well-connected fulfillment center could provide by way of valuable industry-centric advice.

If you’re still hung up on costs, make sure you do the math. Once you factor in the cost of printers, scales, shelving, facilities, labor and supplies, it’s not uncommon to find that the total outsourced fulfillment cost per order comes in at less than the DIY cost per order. This also doesn’t take into account the value of freed-up working capital and the most essential resource of all time.