3PL
Third-Party Logistics Providers: What Services Do 3PL Companies Provide?
This blog defines everything about 3PL providers, who they are, what services they offer, and how to choose the right 3PL company that aligns with your business needs and goals, how they optimize supply chain processes, and more.
What is a 3PL (Third Party Logistics)?
A 3PL is a logistics and fulfillment company that allows e-commerce, retail, manufacturing, and other similar brands to store, transport, and manage the flow and distribution of products and services. Their broad spectrum of responsibilities includes inventory management, warehousing, transportation, fulfillment services, returns processing, and other services.
A third-party logistics (3PL) provider manages outsourced logistics services to handle different facets of acquisition and fulfillment. In the business context, 3PL refers predominantly to any service agreement involving the storage or shipment of goods on behalf of the business so they can focus on their core business functions.
These services can either include a single function, such as transportation or warehouse management, or a comprehensive range of services, tailored to manage the complete supply chain process.
What Services Does a 3PL Company Offer?
Hiring a 3PL company is becoming increasingly important to simplify and streamline your supply chain operations. From transportation, distribution, warehousing & storage, order fulfillment, integration services, and other value-added services, they present a wide range of services, inducing enhanced efficiency, cutting expenses, and improving customer satisfaction and overall experience. Here is a range of services offered by 3PL providers.
1. Transportation Services: Transportation is a critical aspect of logistics handling, and 3PL providers specialize in managing the complex movement of goods across several locations. Their transportation services include:
- Managing land, air, and sea freight seamlessly, ensuring timely and efficient deliveries.
- Choosing the dedicated carriers and negotiating over rates to reduce overall shipping costs.
- Seamless route optimization and appropriate vehicle usage to amplify delivery speed and accuracy, also minimizing fuel usage.
2. Warehousing and Storage Services: Warehousing and storage are important aspects of logistics handling, and 3PL experts offer a variety of scalable storage and warehousing solutions, including:
- Flexible shared warehousing for seasonal or short-term storage needs.
- Tailored facilities for specific clients, commonly with customised services.
- Designed facilities for handling temperature-sensitive or hazardous materials securely and appropriately.
- Tracking stock levels, holding audits, and managing replenishment to avoid shortages and overstocking.
3. Order Fulfillment Services: From the time a customer places an order to the final dispatch, 3PL companies manage the entire order fulfillment process seamlessly:
- Quick and accurate delivery of incoming customer orders.
- Selecting products from inventory and preparing the package for transportation, picking, and packing.
- Partnering with the finest carriers to ensure quick and seamless delivery.
- Reverse logistics and streamlined returns processing to simplify returns management and enhance customer satisfaction.
4. Distribution Services: Efficient distribution services offered by 3PLs ensure that goods are delivered to the right place at the right time. Key distribution services include:
- Reduce storage time by directly moving goods from inbound to outbound transportation.
- Ensuring a speedy and timely final step of delivery to customers’ doorsteps.
- Utilizing different transportation methods to ensure timely deliveries and reduce costs.
Other than this, 3PL providers offer several other services that are a critical part of supply chain processes.
Why Should Your Organization Need to Partner with a 3PL?
There are multiple reasons why organizations should consider partnering with a third-party logistics provider. From enhancing operational efficiencies to improving service standards and more, the right 3PL and dedicated 3PL WMS is all you need to smooth your supply chain:
Here are some most common situations where forming a 3PL partnership will be essential:
1. Constantly Increasing Operational Costs
With inefficient warehouse management or outdated technology, your overall costs will rise, and maintaining profitability will become difficult. Leveraging their expertise and modern WMS systems, 3PLs can allow businesses to reduce their operational expenses and increase performance.
2. Rising Customer Service Complaints
High demand for specific products or limited internal capacity can lead to order delays and customer dissatisfaction. If this is the case with your e-commerce or other business, then experienced 3PL partners ensure timely fulfillment and high customer service standards.
3. Expansion into New Markets
When businesses identify growth opportunities in new markets, 3PL companies play an eminent role in scaling logistics operations. Their extensive and regional knowledge and existing infrastructure make your market entry faster and more efficient.
4. Inventory Management Bottlenecks
Particularly, smaller organizations often lack the tools and systems to effectively and efficiently manage their inventory. A 3PL partner is all you need to better take care of your inventory, gain real-time inventory updates, and implement best practices, boosting overall operational efficiency and productivity.
Whether you’re looking for a modern 3PL provider or 3PL WMS, ShipRelax is here to assist you. For more details or discussion, feel free to contact our team.
Before partnering with a 3PL, we were constantly overwhelmed trying to manage everything ourselves. But with a dedicated WMS, we finally gained the real-time visibility we needed.
— E-commerce Operations Manager, US-based D2C Company
