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For any growing company that creates and sells products, a major concern is how to keep track of their inventory. It’s often a good idea to let the experts handle this important task. A third-party logistics (3PL) company can help them with storage and warehousing.
Understanding 3PL: Exploring Third-Party Logistics Services
Engaging with a 3PL for fulfilling orders lets you team up with experts in a highly critical stage of your business. This allows you to concentrate on other crucial aspects, such as marketing, expanding, and keeping customers happy. For e-commerce brands, it is really popular because handling everything in-house might not always be the best way. Lots of e-commerce businesses grow on a tight budget and thus, prefer using a 3PL to save both cost and time.
A 3PL logistics company can store your products, get them ready for shipping, and bridge the gap between the manufacturing process and delivering them to customers. When your orders are handled well, customers are happy, and your business grows. E-commerce companies need to have great order handling for success.
Before you begin collaborating with a third-party logistics company, it’s important to grasp the concept of what a 3PL is. You can read our blog to understand what 3PL is all about and make a more informed decision.
Why 3PL is the Optimal Choice for Inventory and Supply Chain Management
As a new small business begins, it can manage its inventory independently due to the limited stocks and clients. However, as the business expands, the task of handling inventory and seeking warehouse assistance can become more complex.
Though it might seem expensive to hire an outside company for inventory control, its lasting advantages can significantly improve your overall profits. Before making this decision, it is important to understand the benefits of partnering with a Third-Party Logistics provider.
1. Saving cost with 3PL warehouse management
Partnering with a third-party logistics firm offers clarity and reduces uncertainty. The responsibility for addressing logistical challenges rests with Third-Party Logistics, alleviating the burden on your business. This results in fewer unforeseen expenses in your budget. Moreover, it eliminates the hassle of warehouse staffing and equipment upkeep. Leading logistics companies stay updated with the latest equipment, sparing you these costs.
2. Cutting-edge warehouse technology
For a leading third-party logistics provider, staying updated with industry standards is vital. Innovation constantly improves efficiency through new technologies. Leading companies may have:
- Real-time warehouse management system
- Advanced warehouse robotics
- Automated inventory control platforms
- Automated storage and retrieval systems
- Pick-to-Light or Put-to-Light systems
- Web portals and tracking interfaces
- State-of-the-art barcode scanners
Remaining updated in this evolving field is crucial for warehousing experts. Interested in learning more about these innovative automation solutions? At Addverb, we have empowered many 3PL companies to offer exceptional client services with our flexible and fixed solutions. Visit our website to see how we can take your business to the next level.
3. Minimising risk when setting up warehouse operations
Setting up a warehouse in-house requires a significant investment, from preparing the facilities to incurring mortgage costs, staffing, and training expenses, building them from scratch takes a huge upfront cost, that can impact your business at the time of its growth.
On the other hand, working with Third-Party Logistics can take away the risk of establishing one’s internal warehousing services. The long-term savings from greater efficiency can make the investment worthwhile. Make the most of your freedom by hiring someone who has all these factors already in place. Logistics can be a complex process, and if this is not the focus of your business, unforeseen expenses will certainly arise.
4. Relying on warehouse experience and expertise
3PL providers have been through it all. They are well aware of the issues that may arise when managing a warehouse, fulfilment, and distribution services. Their vast and diverse industry experience allows them to anticipate the warehousing scenarios that will help your business operate without obstacles.
5. Flexibility in the face of hurdles
When you have your warehouse, it can only handle what it was designed for. So, if a new problem comes up, your team has to quickly come up with a whole new solution, which might not even work. On the other hand, a 3PL company serves many different clients with different needs. This means they have a flexible transportation and distribution system. If something goes wrong, they can use other parts of their system to fix it.
6. Tailored warehousing solutions
One common setback of 3PL warehouses is the fear of having limited control. Internal warehousing allows close monitoring of the fulfilment process. After all, who understands your company’s needs better? However, reliable 3PL firms can ease these concerns. They adapt services to your unique warehousing needs. With extensive networks and facilities, customisation becomes seamless – from warehouse location to special conditions.
7. Effortless business expansion
As your business grows, so must your warehousing. Handling it in-house means eventually outgrowing your space and facing the task of expansion alone. In contrast, partnering with a 3PL streamlines this growth. Thanks to existing infrastructure due to serving multiple clients, accommodating increased inventory becomes smoother. You won’t need to worry about adjusting processes; a competent 3PL adjusts seamlessly to your scaling needs, ensuring uninterrupted operations.
8. Transport services by 3PL firms
While not the first thing that comes to mind, transportation offered by Third-Party Logistics companies is a crucial factor. The ability to provide efficient on-demand transportation distinguishes an exceptional 3PL from a regular one. Such companies can collect your goods, warehouse them, and then arrange their delivery via truck or other means to your customers. Ensuring secure and timely delivery, including options like air and ground freight, sets the bar for quality service.
9. Peace of mind
Businesses have got to do a lot already. Coordinating the multiple aspects of a supply chain will only add to the stress. When you delegate your tasks to a 3PL firm, it means that they are the first ones to battle any challenges that come up when keeping track of your inventory.
Partnering with 3PL warehousing services means that your products and materials are in the control of the people who make logistics their priority. Your organisation doesn’t have to worry about missing a step in the process.
Key Factors to Consider When Choosing Your 3PL Partner
Every 3PL logistics company plays a key role in improving and growing an e-commerce business. They handle inventory, manage products, and ensure smooth packing and shipping. But a top-notch 3PL offers more than just these basics.
For finding an ideal 3PL partner, you can start by assessing whether your chosen 3PL partner meets some of the most on-demand customer requirements. Let’s have a look at each of these:
Evaluate their capacity to scale
When opting for a Third-Party Logistics provider, think ahead. For significant business success, collaborate with a competent team for desired growth. Your chosen partner should manage operations as orders surge. Check for adequate warehouse space, staff, and efficient online systems to track, organise, and ship orders promptly.
- Defining key performance indicators (KPIs): How will you measure whether the 3PL team is meeting your expectations? Key performance indicators that cover numerical measurements, quantities, and precise times, will be helpful to achieve your goals. With the help of analysis and logs, you will be able to track the levels of performance and the required improvements of your logistics team.
- Consider where your 3PL partner is located: Check where your third-party logistics (3PL) partner is based. Their warehouses and distribution centres should be near where your customers are. This will help you manage everything better. When your products are close to customers, shipping is easier. Choose a 3PL partner with a wide network for greater benefits.
- Exceptional customer service: When picking a 3PL partner, their customer service matters. Pay attention to their customer support quality. This involves closely assessing the needs of the clients, addressing queries, and offering assistance. Clearing doubts and being attentive to valuable customers is key.
- Compatibility with your business model: Furthermore, especially for Direct-to-Consumer (D2C) or Business-to-Business (B2B) enterprises, it’s essential to confirm that your chosen 3PL firm can accommodate your business model. They should provide services like retail drop-shipping, versatile multichannel and omnichannel logistics, as well as effective management of inventory across various channels.
- Paying a visit to the fulfilment centre: Meeting your third-party logistics partner will give you first-hand information about their work culture. Take a tour of all the facilities and gain a proper understanding of how your products will be moving out of their 3PL systems.
- Getting Started When you have selected a reliable 3PL partner, they will initiate the onboarding process to integrate your company. This is an important step that enables both companies to understand how each of them operates.
The onboarding process typically continues for days or weeks, depending on the scope of the companies and the level of collaboration. Since a lot of resources are invested to ensure a smooth process, 3PL firms commonly charge clients for this service.
To Sum Up
It is quite evident from the exhaustive list of advantages that outsourcing the fulfilment requirements is a great way to increase the capacity and reach of your e-commerce businesses. You will be able to do more without relying on additional staff, reach wider markets, engage with diverse customers, offer hassle-free shipping, and much more with the help of third-party logistics firms.
3PL Warehousing made Seamless with Addverb
Addverb transforms Third-Party Logistics with cutting-edge automation solutions. By seamlessly integrating fixed and flexible automation, Addverb optimises operations, boosting efficiency, accuracy, and scalability. From streamlined order processing to error-free sorting and rapid shipping, it empowers 3PL providers to exceed expectations, redefine industry standards, and move into a new era of warehouse excellence.
So, are you ready to transform your 3PL warehouse with innovative automation? Reach out to Addverb for unmatched solutions that not only optimise operations but also empower you to provide unparalleled, high-quality services to your clients.
