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 brings continuous improvement to your global ecommerce business and makes more money.
Editor’s note: This post was originally published in September 2019 and has been revamped and updated for comprehensiveness and accuracy.