As an ecommerce business owner, you probably wear a lot of hats in your role. You may oversee your company’s marketing, accounting, operations, customer service, or even manage your supply chain. When your business is small, this may be doable for a while. But as you scale and expand into new markets, wearing all these hats yourself becomes all the more difficult, especially supply chain management. That’s why many growing ecommerce companies are trusting their supply chain needs to a third-party logistics provider, or 3PL. But what is a 3PL, and if you partner with one, what is its role in your supply chain?
Defining a 3PL
A third-party logistics provider, or 3PL, offers a variety of logistics services to its clients. Some 3PL logistics providers provide comprehensive logistics services, overseeing a company’s entire supply chain, while other 3PLs specialize in specific logistics needs like transportation, warehousing, or sustainable supply chain practices. For complex supply chain needs, there are even 4PLs that oversee your outsourced logistics to a 3PL while offering supply chain optimization and consulting services.
Ecommerce companies will outsource their logistics needs to a 3PL to rely on their expertise and capabilities to navigate their business’s supply chain. This partnership also frees up space for the company’s owners or leadership to devote their limited time to more vital aspects of their business, allowing them to wear fewer hats, so to speak. Once the partnership begins, quality 3PLs will regularly communicate with their clients and offer operational transparency.
Key Roles of 3PL Logistics in the Supply Chain
A 3PL’s appeal to ecommerce business owners like you is its expertise across the supply chain, making many 3PLs a logistics one-stop shop. The 3PL logistics company you choose may take on a variety of roles in supply chain management for you, including:
Warehousing
A 3PL will have warehousing space available for you to store all or some of your inventory. That means you can spread your inventory throughout your 3PL’s warehousing network across the US for faster, more affordable shipping.
Replenishment & Inventory Management
Your 3PL logistics provider will help with inventory management, keeping track of your inventory levels throughout its warehouses and even replenishing your stock as needed. Some 3PLs can also offer proprietary inventory management software technology to make sure you have real-time inventory data at all times.
Picking, Packing, and Fulfillment
A quality 3PL can oversee the entire ecommerce order fulfillment process. This starts with picking inventory items off the warehouse shelves efficiently when an order is placed, then packing the items appropriately to avoid transit damage, and preparing the boxed items to ship.
Transportation & Shipping
Once the items are ready to be fulfilled, the 3PL will provide shipping and transportation services to get orders from your customers, including small parcels, less-than-truckload, truckload, and drayage.
Returns Management
No one likes returns, but they happen. Your 3PL can own the entire returns process, taking the logistics of managing returns off your hands while allowing your company to offer and uphold a strong return policy that your customers appreciate.
Managing Your Supply Chain: A 3PL’s Distinct Advantages
Scalability
As your ecommerce business’s demands increase, so can your logistics capabilities when partnering with a 3PL. That means as your company grows, your supply chain needs can keep up with your growing orders and customers, even as you expand nationally or internationally.
Cost Savings
Instead of hiring internal logistics staff or spending overhead costs on warehousing, you can save money by utilizing a 3PL logistics provider. Plus, a 3PL will be able to provide better shipping rates thanks to its vast carrier relationships and its ability to optimize transportation needs.
Logistics Expertise
When you work with a 3PL, you’re working with experts who’ve been leading logistics for decades. That means you’re bringing their expertise and experience into your supply chain, giving your ecommerce business better logistics operations and a competitive advantage in the marketplace.
A Better Customer Experience
With a 3PL managing your supply chain, you’re able to ship your orders quickly and accurately. This creates a better experience for your customers as you meet their expectations and earn their loyalty.
Smart Warehousing: Your Trusted 3PL Logistics Partner
Managing a supply chain successfully is vital to a growing ecommerce business like yours. That’s why so many companies have trusted their logistics needs to us at Smart Warehousing. As a nationwide 3PL, we can provide comprehensive logistics solutions that equip you to keep up with customer demand as you scale your business. To learn more about our 3PL logistics expertise, contact us today.