3PL (Third-party Logistics) is changing the shape of eCommerce product distribution by providing a range of flexible storage and distribution services to their customers. The industry looks set to make even more advances with technological innovations such as automation and advanced IT solutions.
Third-party logistics, or 3PL, means the outsourcing of some eCommerce logistic activities to a third party.
3PL providers offer warehouses and distribution networks that get your eCommerce orders to your customers quickly and efficiently.
Many small businesses are turning to 3PL providers to reduce costs and overheads, improve flexibility and scalability and therefore ultimately improve customer satisfaction.
More and more retailers are outsourcing part or all of their company’s distribution and fulfilment to third-party providers.
3PL is not just for big businesses. It is often the perfect solution for small businesses, allowing them to expand without the need for the financial outlay of warehousing and staff costs.
The sector began as mainly in order to provide 3PL warehouses to customers without the space to store their own products. Alongside this, these companies developed inventory management and packing and shipping solutions for their clients. Today, 3PL can service almost all aspects of the supply chain.
The role of 3PL in supply chain management is to outsource some logistics activities so you can focus on the most important tasks for your business.
Third-party logistics offers a solution to many of the problems of start-ups and growing businesses. No longer do small businesses need to rent large warehouses or employ staff to pick, pack and post. Store your products in a 3PL warehouse and leverage the skills, knowledge and purchasing power of that company to grow your business.
Warehouse management can be a major headache for online businesses. Legal fees, contract negotiations, long/inflexible leases, security, heating, lighting, health and safety. All these issues are removed at a stroke with third-party logistics.
Because 3PL providers are experts in warehouse management and inventory control, they can provide solutions that are far beyond the capabilities of many growing businesses. 3PL invests in the most up to date technologies, so you don’t have to. They also have existing relationships with shippers and use economies of scale to get the best deals on shipping costs.
3PL companies also invest in advanced technologies to streamline eCommerce distribution. As these technologies advance, their customers will automatically benefit from these advances which include the following.
3PL providers typically work with online retailers to take care over the order processing, from storing stock, pick and pack products, and final mile delivery through a range of couriers. Third-party logistic providers, like Huboo, have fulfilment dashboards and eCommerce warehouses so that eCommerce sellers can keep up to date with the order fulfilment process and know that their goods are stored in a safe secure environment.
Inventory management is key to efficiency. 3PL providers are using advanced software systems which integrate with multiple online channels like marketplaces or shops.
If you have built your own shop, if you are part of a marketplace or even a multi-channel retailer, third-party logistics providers can connect your shops with their fulfilment system.
3PL use real-time analytics to determine the fastest and cheapest ways to get product to customers. This increases efficiency and reduces costs. In addition, as customers demand faster and faster delivery times, providers are able to respond to that need.
You can expand your business to other territories without having to worry about courier rates – a top 3PL company should offer you the best options.
By using cloud-based technologies, 3PL allows you to access information about your business anytime and anywhere. Using cloud-based solutions also eliminates the need for IT system upgrades.
Overall, these advances will result in a cheaper solution for your business as well as a more satisfying experience for your customers.
If you are ready to move your business to the next level or want to remove the hassle of leasing storage space and running a delivery operation, then Huboo can help.
We offer the lowest prices, free storage and the flexibility you need whether your business is large, small or growing fast. In addition, our 99.9% accuracy rate will provide your customers with the five-star service they expect.
We offer 3PL services from our UK and EU fulfilment network. You can expand your business globally.
The first thing is to speak to a number of 3PL providers. Go back to the ones you spoke to before with what you learned from the ones you’ve spoken to more recently.
Always check these details:
Our fulfilment solution is trusted by companies of all sizes, from challengers to established and premium brands. Check our success stories here.
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