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Everything You Need to Know About Third Party Logistics Services

Everything You Need to Know About
Third Party Logistics Services
What is 3PL Logistics?
A Third Party Logistics Services, or 3PL, involves getting outside help with the
fulfillment of orders, inventory management, and warehousing.
3PL partners handle storage, picking, packing, and shipping on your behalf
instead of delivering goods to your own warehouses.
3PL companies can handle the extra workload or overhead for fast-growing
ecommerce brands so they can scale up sales quickly.
A 3PL company can perform a variety of services, some of which may cover all
your fulfillment needs, while others may only cover part of what you need.
Finding the right 3PL partner is important to your business' success.
What are the Different types of 3PL Companies?
There are several types of
service providers, so
before you can choose
the right fit for your
business, you'll need to
know what your options
What are the Different types of 3PL Companies?
This Breaks Down Into Three Types:
1. Distribution: A common 3PL Service is distribution, which involves warehousing
and distributing your products. Obviously, this is an option you should consider if
you want to expand your business into more channels while maintaining 1-2 day
2. Financial and information: A 3PL with special expertise in international supply
chains should be a good choice for bigger brands handling a large volume of orders.
Optimizing your fulfillment process and adapting to changing global operating
conditions can be provided by them.
3. Transportation: As well as transportation services, these 3PL companies often
provide warehousing as well. When you are looking for a 3PL provider, FedEx is a
great choice if you just want one provider for all of your fulfillment needs, rather
than dealing with multiple companies.
Would your brand benefit from partnering with a Third Party Logistics
Provider? You might need to consider more formal Third Party Logistics Services
if you recognize the following as part of your current growth stage:
The volume of orders you receive is too high: If you cannot fulfill everything
yourself, there will be an advantage to hiring outside help. An easy way to
determine if you need fulfillment help is if you get more than 100 orders per
Your delivery times must be reduced: Customers expect free 1-2 day shipping
from Amazon (this is the effect of Amazon/Prime). The ability to meet customer
expectations can be made easier if you’ve recently increased sales and have
infrastructure already in place through a 3PL logistics partner.
You’re running out of your own warehouse space: Having recently
increased sales can also cause you to run out of warehouse space.
Rather than taking on this responsibility yourself, you might be better off
bringing in a 3PL partner to help. The same is true if the organization of
your warehouse is getting unruly.
You want to scale: Scaling your brand brings many challenges. By
outsourcing extra fulfillment requirements to a specialist 3PL provider,
you can reduce some of the overhead and risks associated with scaling.
The 3PL Process and Considerations
When you are used to running your ecommerce business alone, it can be
unsetting to let someone else handle the Logistics of shipping your
goods, so let’s demystify it a bit before you give it a go.
3PL Partners typically ships goods in the following way:
 Receiving
 Picking
 Packing
 Shipping
 Returns
The 3PL Process and Considerations
3PL Partners can provide you with the following services:
Ecommerce Platform Integration
Shipping on the same day or within 2 Days
Returns Management and Reverse Logistics
Tracking capability for Customer
The Distribution of Inventory
Fulfillment of Orders Internationally
Options for Flexible Shipping
Logistics Service Providers are transforming the supply chain
sector, helping their customers focus on their core businesses
while managing their Transportation, Freight Operations,
Warehousing and more.
As a result, companies are being able to save costs, expand their
businesses, and improve their operations.
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