Everything You Need to Know about Third-party Logistics

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Everything You Need to Know about Third-party Logistics

It goes without saying that every company owner wants their business to be successful and generate plenty of money. It should also go without saying that anyone running their own business has plenty on their plate. They often feel overwhelmed trying to stay on top of things. The demands are many; customers on one end and the market on the other often need completely different things; it’s quite a challenge keeping up with everything. Third-party logistics (3PL) are here to make running your business a lot easier and take some of the burden off your back. Here’s how they do it. Everything you need to know about third-party logistics.

What exactly is Third-Party Logistics (3PL)?

When a business is dealing with too much; and the owner feels like they can’t handle the burden alone; they go to third-party logistics (3PL). This means that supply chain operations and logistics are being outsourced and not handled by the mother company. Most commonly, people choose to have shipping, receiving, storing, and packing services outsourced. Still, there are many more to choose from. Sometimes, business owners choose to have someone else handle their postponement packaging, inventory management, as well as kitting and assembly. Another reason why 3PL companies have grown and gained popularity so much is because of the incredible growth of eCommerce as well as tracking technology.

They will help you save money

Business owners tend to stall with hiring a third-party logistics provider; since they see this as a big and unnecessary expense. Much to the surprise of those who decided to give it a go – it’s not a huge expense at all. You will not have to think about building warehouses, arranging transportation, hiring any additional labor, or installing technologies in the long run. It will all be taken care of by your third-party logistics provider, and they will also take care of the paperwork. This means that you will not have to deal with audits, billings, or staff training and optimization at all. Of course, different providers offer different services. Before you sign a contract do some research. Find the provider who will handle the part of the business that’s giving you the most trouble. 

You’ll have experts on your side

Any 3PL provider worth their salt is in touch with the market. They are most likely well aware of the best practices that the industry offers and requires. What is more; it’s their business to stay on top of the latest trends and developments that are taking place in the manufacturing as well as; the logistics industry. When you decide to hire a 3PL provider, you will get much; more than a helping hand – you will get experts working alongside you to ensure that your business blooms. They bring their extensive industry expertise and knowledge with them, and they will put it to good use for you. Being aware of the best practices in the industry will help you incorporate them into your business. 

Get access to great positions in the newer markets 

One major benefit of 3PL logistics outsourcing is gaining the ability to establish yourself in newer markets.   You will have access to distribution centers and warehouses in multiple locations across different regions. This will allow you to grow your business in new markets by being able to ship your product anywhere across the globe. You will be able to locate and track products in a new market without spending on equipment, warehousing, and labor. You can save money and instead spend it on positioning yourself to your new customers.

They’ll handle inventory management

People think that inventory management simply means that 3PL will take your products and keep them in a warehouse until there’s an order to ship them to an address. Fortunately for business owners, there is much more than that – most 3PL today are using sophisticated software. This software will allow owners to always know the exact state of their inventory, which means that there will be fewer chances of running out of a specific product. Sometimes, these numbers can be seen on the seller’s website, too, so the customers also know what’s in stock. What is more, 3PL can sometimes ask to get advanced shipping notifications that contain the inbound inventory, which means it’s always crystal clear what products are coming and how many of them are there. If there’s more than one facility involved, this will give them information on where exactly the products are shipped. 

Get help with continuous optimization

The sheer amount of work that’s required out of a business owner in order to ensure that supply chains run smoothly is very often overwhelming. As an owner, your resources and your time are limited, and with supply and demand constantly changing, you have to work twice as hard. 3PL providers can help with the struggle since they will cover the delivery. In addition, they will be able to provide the customer as well as you with better and more accurate delivery times and order fulfillment. With worries about the inventory, storage, shipment, and delivery out of your way, you can focus on things that will help you grow and improve your business even further.

If you’re hoping to have a successful business, it’s going to take a lot of time and hard work. Researching the market, perfecting your products, improving your services, and ensuring that your customers are happy are all demanding tasks. When you have third-party logistics on your side, you can rest assured that a great part of the burden will be redirected and handled without you having to sacrifice your time or your money to do it. Once you start working with them, you’ll notice fewer complications, and you’ll be able to focus on other important matters. 

Featured photo by Bench Accounting on Unsplash

Ron Wolf is a hobby designer a DIY enthusiast, and a very blessed father of two. He has a strong passion for writing. If he is not working he enjoys being outside with his family.

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