What is 3PL and why it is necessary for business?

From a large e-commerce business to one just starting up, customer satisfaction is always the most important, and nothing makes a customer happier than getting their desired products efficiently and quickly. Providing products to your clients in a manner that is cost-effective and efficient, is the focal point of any business operation.

However, as the business grows, managing that supply chain becomes challenging and expensive. Making mistakes in logistics can impact the customer experience, halt your business growth, and cut down on your profits. This is where 3PL warehousing can be highly beneficial for growing each business as it expands and encounters more complex supply-chain management and logistics challenges, But what is 3PL?

Let's see about the industry, their advantages and why you should choose automation for your 3PL industry.

What is 3PL/ Third Party Logistics? 

Third Party Logistics is a service or a partner that helps e-commerce merchants effectively handle their supply chain. Some of the most common 3PL services entail warehouse and inventory management, shipping coordination, order fulfilment, retail distribution, returns and exchanges.  

Joining hands with a 3PL eventually enables a merchant to focus on various other essential areas of their business.  

Since these service providers have been handling these kinds of logistics for years, they have the experience and expertise to make the process quicker, simpler and more cost-effective for the seller.  This is why 90% of Fortune 500 companies use services from 3PL service providers. There has been exponential growth in the market for 3PL providers with the rise in e-commerce. Their market has been forecasted to reach $1.75 trillion by 2026 

When do companies choose to work with a 3PL provider? 

A lot of companies have a misconception that the logistics partner is an expensive solution for their complex workflow. They think picking, packing and shipping orders from their warehouse seem to be a more affordable option than hiring third-party help.  

However, it’s a smarter decision to choose a third party logistics service before companies feel overwhelmed by order growth. Not just for large-scale businesses, they are ideal for merchants of any size with plans to expand. For instance, if there is a flash sale or any of the products becomes popular, it’s not always suitable to handle the sudden increase in orders in-house. Being unable to fulfil promised orders to customers can lead to brand damage, specifically in the times when 60% of global customers want the same, next, or two-day delivery.  

Given below are the three key considerations for companies to decide whether it’s time to choose the services of a 3PL:  

When they are fulfilling over 10 to 20 orders per day  

One of the primary goals of every organisation is to use time and money judiciously. For businesses, outsourcing packing, picking, and shipping can save a lot of time on manual labour.  

When they run out of inventory storage space  

Merchants often forget to add storage costs in their calculation for expenses. Outsourcing fulfilment can be a more cost-effective option for storage needs.  

When current infrastructure cannot handle a surge in demand  

It can be better value for money to outsource fulfilment to a 3PL compared to rapidly hiring for increasing in-house capacity or investing in automation yourself.  

How to effectively promote your 3PL warehouse services?

To ensure sustainable growth, it is important to know how to effectively promote your services to potential as well as existing customers. By promoting your strongest attributes, your 3PL warehouse can stay ahead of your competitors who are fighting for the same customers, while you are focused on customer satisfaction and increasing sales.  

Stay ahead of the competition

Stay updated with the latest trends and technologies in logistics and warehousing. Embrace innovations such as your warehouse automation, data analytics and supply chain visibility, and emphasize how these advancements benefit your clients.  

Highlight your Unique Selling Proposition (USP)

 Many 3PL warehousing offers similar services, but what sets you apart from competitors? Highlight those traits and explain how they make you unique. If you have a different approach to how you manage your inventory, let the consumers know! For instance, if automation is being used for moving goods around your warehouse or you use state-of-the-art warehouse management system (WMS) software for inventory tracking, showcase it.  

Show them how you can help save money

Some prospects and existing customers only care about the bottom line and how your 3PL warehousing can save money and time over a period of time. Show them how you can contribute to their current or potential savings. This might involve taking off their logistical burdens with your operational efficiencies, industry expertise, excellent accurate picking ability, or price negotiation skills.  

Be a problem solver

The strengths of your company are your advantage, especially value-added services. Draw your customer’s attention towards your value-added services and how they can solve their problems when looking for new customers. You might be well-known for high-volume subscription and distribution shipments. If that’s the case, let them know! Your logistics solution and premium customer service are also critical points to highlight. Solving your customers’ problems by providing expert services can help your business stand apart.  

Talk about your technology and WMS software

Since, not all distribution facilities use the same WMS software, pinpoint how key attributes of your software cater to the unique needs of the clients. Highlight how your 3PL management relies on the best technology for accuracy and efficiency like

Show your commitment to innovation and improvement

No warehouse or 3PL can survive in today’s competitive business landscape without the will for improvement. Tell how your company is committed to constant improvement through capital and/or operational enhancements. Excellence can be translated in the form of:  

Prove that your 3PL does not remain static and continuously strives for innovation and improvement.  

We at Addverb help our partners get maximum output from their limited resources through both horizontal and vertical space utilisation. As a 3PL provider, if you want to use your place for multiple clients with maximum output, contact us.

Choose online platforms to promote your 3PL

Undeniably, the internet plays a massive role in brick-and-mortar businesses. However, various 3PL companies still overlook its importance and avoid taking advantage of it to promote their warehousing services. Online marketing is a strong tool that can be leveraged to increase business opportunities and help you stay ahead of your competitors. Given below are a few ways to make the most of your digital marketing efforts:  

Website optimisation

Small changes on the website can make a big difference in your search engine rankings and make it more appealing to users. It can conclude:  

Make the most of social media

 One of the most powerful tools in today’s day and age, social media can help you boost your business by:  

Digital advertising and communications

One of the best ways to market your warehouse or 3PL online is through paid and unpaid campaigns. Unpaid campaigns consist of emailing your prospects and existing customers about your services or achievements. Sending newsletters regularly to maintain or bring new business. Remember to make the most of free listing services on Google, Yelp and various other platforms to increase the visibility of your business.  

Paid campaigns consist of promotional ads or placement of listings on social media platforms and search engines. You can also buy advertisements on relevant industry websites.  

The key takeaway is that exceptional performance and high standards build customer loyalty. Make sure your prospects and customers know why they should choose you to manage their goods effectively and efficiently.  

Bottom Line  

Effectively promoting your Third party logistics warehouse services requires a strategic approach that combines a deep understanding of your target audience, clear and compelling messaging, and a diverse range of marketing channels.

By implementing the tips and techniques discussed in this blog, you can establish a strong online presence, build trust and credibility with potential clients, and differentiate your services from competitors.

Addverb as a partner can help you make your 3PL business more robust and efficient, Remember to continuously monitor and adapt your promotional efforts based on feedback and market trends to ensure long-term success. With a well-executed promotional strategy and key decision of using latest technology, you can position your 3PL warehouse services as a trusted and valuable solution for businesses in need of efficient logistics management. 

Feature blogs