What is a 3PL? 3PLs, or third-party logistics providers, offer a very flexible service. They can assume just a piece of either your warehousing, distribution, supply chain or fulfillment needs, handle an entire branch, or take over your entire shipping operation. This allows companies to farm out only the services they most need help with, making 3PL services extremely affordable.
So what are the benefits of a 3PL and how can 3PL services help your business?
3PL Companies Can Help in Scaling Your Business
When fulfilling your own orders starts to limit the growth of your company, a 3PL can help you scale your business. Many smaller companies don’t have the necessary capital required to start warehousing operations. 3PL providers help implement systems that streamline operations so you can focus on customer acquisition and building your brand.
3PLs Make Warehousing & Distribution More Streamlined
Many businesses will admit that warehousing and distribution isn’t something they’re skilled at, even though the services are an integral part of their business. As a result, they often don’t do it well which wastes time and money and keeps company officers from being able to focus entirely on the parts of the business where they excel.
For these companies, hiring a 3PL to handle logistics actually saves them money. Because the 3PL is able to do the work far more efficiently, things done faster and at a lower cost.
Better logistics usually means happier customers, which assures more repeat business. Additionally, when the company can focus on its core competencies it tends to make more money. When including these ancillary opportunity costs, 3PL services make a lot of sense.
Time to Customer Can Be Reduced with 3PL Services
Small to midsize companies handling logistics themselves often don’t have the scale necessary to deliver quickly to customers anywhere in the country. 3PLs, on the other hand, usually have multiple distribution centers, and well-designed distribution systems. This allows them to deliver in one or two days nearly everywhere, for a far lower cost than companies could do it on their own.
For this reason, using 3PL companies to handle distribution is a smart play. Dramatically faster fulfillment can go a long way toward keeping customers happy, particularly when this is a service they’ve come to expect from competitors.
A 3PL Frees Up Resources for Other Uses
Companies have limited capital. In order to maximize operational results, smart businesses invest this capital where it can make the biggest impact. If your capital would be better spent building up other areas of your businesses operations, then it makes sense to hire logistics out to a 3PL and direct your capital expenditures elsewhere.
A 3PL Let’s Companies Take Advantage of More Established Supply Chains
3PL companies generally have vastly larger supply chains than many small to midsize companies could build on their own. Especially in the early years of a company’s life, it can be wise to use these pre-established supply chains. Their reliability and lowered costs guarantee businesses have the raw materials they need, when they need them, avoiding supply chain interruptions that could have devastating effects on nascent enterprises.
Logistics is a critical part of your business. It directly impacts your customers and their perception of your services. At One World Direct, we combine third-party logistics with eFulfillment for a comprehensive package to ship your products. We help you optimize your operations so you can focus on your company’s growth. If you’d like to talk more about how a 3PL can help your business grow, give us a call at 1-866-289-9010. Or drop us a line at sales (at) owd (dot) com..