Logistics is an essential part of any business, and therefore considerable resources are spent to make it efficient and smooth. However, you will have to pay a lot to achieve the desired outcome; that’s why 3rd party logistics (3PL) service providers have gained massive popularity. For information about third-party logistics providers, learn more here.
Here are 5 ways a 3PL can take your business to the next level.
One of the most significant advantages of hiring a 3PL company is that they have the capacity to store huge shipments. 3PL companies usually own warehouses, so the products stay safe. A 3PL company allows you to store inventory overlooked by professionals, thus ensuring its safety. You have to pay rent until the goods are shipped to the customers or your company.
Similarly, if you are in the business of selling sensitive goods, then a 3PL company is your best and safest bet. They have warehouses specially designed to store sensitive inventory. It can be anything from frozen food to chemicals; they will keep them safe and monitor them round the clock.
3PL companies have evolved over the years and have added services for the convenience of their clients. Shipping goods directly to the customer is one of them. You will receive the order, but a 3PL service provider will process it. From finalizing the transportation mode to route, they take care of everything.
A big part of logistics is inventory management, and only expert hands can make sure it stays safe. 3PL logistic firms have professionals who look after your inventory 24/7. They will receive the goods from the supplier, check the order details, and then store them. These firms can also help with the packaging and labeling of the product. If you were to do the same, not only would it cost you significant money, but the time it takes to completely streamline the process might make you lose customers, resulting in diminishing revenue.
Nearly all the businesses that hire 3PL firms have reported increasing profits. A 3PL service provider is one of the most accessible means to expand your business globally. You can buy goods in a different part of the world and ship them directly to your customer’s destination. If you do the same locally, you will only conquer the local market, not the international one. This is why most new and old ecommerce businesses prefer hiring a 3PL firm; they not only save cost but also provide services that are sure to grow your business over time.
If a customer wants to return the product, your business can handle it easily. Your customers can ship the product back to a 3PL company, which will make sure all the demands of your customers are met correctly this time.
Businesses, be it old or new ones, need help from time to time to stay a float and increase their profits. 3PL firms allow you to focus on marketing and other business operations while handling the logistical side.