Logistics form an integral component of your business operations, whether you are a manufacturer, retailer or own an e-commerce business. As a company that has been providing third party logistic (3PL) services to various e-commerce giants in the eastern India, we understand how difficult it can get to wrap your head around the nuances of a logistics and supply chain.
From handling in-house warehouse, getting trained staff on board to do jobs as sorting and packaging, getting right ancillary equipment or seeing that the cargo is shipped on time and correctly between different locations, the challenge is enormous. Plus the supply chains keep evolving and keeping up with it can be quite a task. No matter how hard you try, there are bound to be some errors or delays, all the more, if logistics is not your area of expertise. And delays in delivery means your business will incur losses, financially as well as in terms of unhappy customers. Certainly, you do not want that.
In a age where time is money and precision in business is the key, more often than not, reaching out to a third party logistics (3PL) provider to handle your logistics and supply chains, can ease of a lot of your problems.
So what does a 3PL company do?
A 3PL company basically offers services as storage, warehousing, packaging, inventory, transport and most importantly, information and control i.e it streamlines and monitors your entire your entire supply chain process from origin to destination. A 3PL provider may offer all or a couple of these services, depending on what your requirements are.
But what makes 3PL a better alternative?
Understand logistics – They are simply experts at what they do. A 3PL company will analyse and recognize the problem areas in your logistic operations and come up with customized solutions, so as to maximise efficiency of the entire process.
Cost effective – A 3PL provider has a number of resources at its disposal that makes the entire process cost effective. In most cases, there is a significant difference in the capital that is invested in in-house supply chain and an outsourced logistics.
Take the case of _______ that ShipZip collaborated with (can include relevant data)/
Use of technology – Most 3PL organizations make use of information technology to monitor various operations and their execution. Advanced tools as Warehouse Management System(WMS), Transport Management System(TMS) and other cloud based systems are put into use to offer more visibility into the entire supply chain process; so you know what, when and how much of freight is being shipped – all in real time.
Save Time – A 3PL provider also handles trade compliance during freight shipping, paperwork, billing etc. So outsourcing logistics will save not only your the time but also the hassle of various supply chain operations.
Reliable – Also, a 3PL organization is always looking to improvise its supply chain process and networks. Hence, you are always sure that your supply chain and logistic process is being constantly improved and adjusted to ensure a quicker reach to the market and your customer. The success of your business directly impacts the 3PL provider, so you know your work will never be compromised with.
According to a recent study 91% of the businesses believed their relationship with their 3PL was positive and successful. 89% believed the use of 3PLs had contributed to improving their service to customers.
Wondering when you need to outsource your logistics?
- Maintaining warehouse infrastructure, transportation and labor can drain a lot of capital and can reflect poorly on your organization’s financial statements. So, if you see your business costs creeping up, consider handing over your logistics to a team of experts.
- With 3PL provider managing logistic operations, you and your staff can focus entirely on your organization’s core business operations.
- Also, as the order volume change during peak as well as slack seasons, it is always best to a bring a experienced 3PL provider on board who can manage any fluctuations with expertise. They are accustomed, fairly well, with industry practices and market behavior, so they can help you save on inventory holding costs during seasonal fluctuations.(Any particular client that ShipZip has worked and managed high volumes during peak season)
Looking to expand your business to other regions?
ShipZip(has it helped any business grow to other parts?)
A 3PL provider, with their advanced system in place, can offer you the much needed aid to grow in new regions and markets by streamlining all operations of a supply chain with minimum errors. The bottom line is that a good 3PL company can boost your business with correct strategy and customized solutions.
Like every coin has two sides, so do 3PLs. We suggest you to opt for one only after an in-depth analysis of what your shortcomings are and if a 3PL provider will be able to eliminate or minimize those. It is very important to assess if a particular 3PL company is what you are looking for.
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