3PL stands for Third Party Logistics. 3PL companies are experts in optimizing the supply chain operations to assist e-commerce business owners in their supply chain management. So, e-commerce business owners can become free from the tension of shipping and they can concentrate on creating their space and credibility in the market.
Still don’t know advantages of using e-commerce in the current era?
The credit to the emergence of 3PL companies goes to the military that discovered this method to ensure the quick and impeccable transportation of the resources in those areas where they were urgently needed.
3PL is one of the fastest growing industries in the present and it has happened because of the deregulation of interstate trucking that has done away the barriers regarding entry in the freight management industry.
How 3PL companies are helpful for online businesses?
Third Party Logistics companies are not limited to shipping only. They provide warehousing as well. These companies can manage the whole supply chain management of e-commerce companies.
In today’s competitive business environment when customers have no dearth of options, they mainly focus on two things – online reviews about the company and shipping fulfillment.
The reviews very much depend upon how the product delivery is done. You can see many bad reviews about several e-commerce stores for their poor delivery.
When it comes to the delivery of the products, the companies have several options:
- They can manage their own warehouse and then take a product form the inventory to deliver to the customer
- They can use a third party warehouse and then pick up the product from warehouse when they receive an order for that.
- They can hire a third party logistics service that provide both warehouse and shipping service.
The companies just need to tell the details of the order with the address of the customer to the 3PL companies and they do the rest.
Which option is beneficial?
What do you think which would be the best choice to go with?
Any smart businessperson would love to go with the third choice. If you are in a little doubt, I make this clear why this last option is the best choice.
The third option is better because…
Arranging a warehouse and taking care of shipping is a big headache. Today your requirements are less, then even having a small warehouse is just fine but in future when your business will grow more with time, you will have to look for different warehouses.
Apart from that, you will have to ensure security arrangements for the same. You will need to look for your shipping team in order to ensure no order is delayed. You will have to focus on hiring and firing of people as per the increase and decrease of the orders.
On the other hand, when you assign these issues to a reliable 3PL company, you don’t have to think about these things. This becomes the responsibility of the 3PL company to update you about the inventory and make sure every order is delivered in time.
So, you get rid of all these tensions by assigning the job to a company specializing in this. Therefore, you have more time to think over how to pace up your business.
What about you?
Have you ever heard or used a 3PL company? Share your thoughts and experience with us?