As consumer behavior shifts towards an online shopping experience, it’s critical that companies like yours get your ecommerce logistics right. After all, your customers expect a smooth ordering process, from the initial purchase to the final delivery on their doorstep. And they want to receive their items quickly, otherwise they can easily shift to other ecommerce options instead. That means your entire supply chain needs to be managed efficiently, from warehousing and inventory management to fulfillment and transportation.
Ecommerce companies that can manage their supply chain well and meet customer’s online shopping expectations can easily separate themselves from their competitors in today’s marketplace. However, these companies likely aren’t managing their logistics in-house to accomplish this. Instead, they’re choosing to outsource their logistics needs to a third-party logistics provider, or 3PL.
What is a 3PL?
A 3PL is a company that specializes in a variety of logistics services throughout the supply chain. A successful 3PL will use their expertise and resources to manage their clients’ logistics operations, including:
- Inventory management
- Warehousing
- Picking and packing
- Custom packaging and labeling
- Order fulfillment
- Transportation
- Reverse logistics
When a business outsources their logistics to a 3PL, the 3PL provides its own warehouses, staff, logistics technology, and equipment to manage their clients’ supply chains. And with a 3PL’s sole focus on logistics, they can offer years of specialized expertise and vital industry relationships, making it easier for your logistics operations to be optimized.
Five Benefits of Outsourcing to a 3PL
As you explore the option of partnering to a 3PL, it’s important to consider the benefits your company can experience by outsourcing your logistics, including:
Time Saved
As an ecommerce company (and as a business owner) with only so much time on your hands, wouldn’t it be better to devote your energy towards vital aspects of your business like marketing, customer service, or product development? Of course! But managing your own logistics can be incredibly time consuming, especially during peak seasons. That’s why outsourcing your logistics operations to a 3PL who can oversee your entire supply chain is so beneficial, as it gives you time to devote to more important tasks and goals.
Reduced Costs
Though you’re paying for the services of a 3PL, you can experience long-term cost savings by outsourcing your logistics. For starters, you don’t have to pay for your own upfront overhead logistics costs, such as warehouse space, packing materials, a fleet of delivery vehicles, or even supply chain staff. In addition, you can take advantage of a 3PL’s economies of scale. Because of their large logistics clientele, 3PLs can get better rates on various logistics needs, such as shipment costs from national carriers, and pass these cost savings on to you as their client.
Customer Expansion
When you partner with a 3PL, you’re not hampered by the limitations of your own in-house logistics. This means as your business grows, your logistics operations have the ability to grow with you thanks to a 3PL’s capacity to handle larger supply chains. A 3PL’s large warehouse networks, for example, make it easier to reach customers in new markets across the country—even internationally.
Less Risk
Outsourcing your logistics to a 3PL keeps less supply chain risk in your hands, such as worker or material shortages, unpredictable demand spikes, or even transportation breakdowns. It’s only a matter of time before these kinds of unforeseen situations happen. But when it’s the responsibility of a 3PL instead of yours, your 3PL will have access to the resources, expertise, and capacity to address them more quickly and easily.
Faster Shipping Times
With the popularity of Amazon Prime, fast shipping times have become the prevailing customer expectation. That’s why outsourcing your logistics to a 3PL can put you in a position to meet (or even exceed) these demands. Your 3PL will have the know-how, manpower, and technology to streamline your supply chain so you can offer expedited options such as 1-2 day shipping to your customers nationwide.
Ready to Outsource to a 3PL? Partner With Smart Warehousing
With a 3PL’s advantageous logistics expertise and capabilities, it’s apparent that outsourcing your supply chain needs to a third-party logistics provider can help your company succeed. But finding the right 3PL to work with is an even more critical decision. At Smart Warehousing, our proven experience in comprehensive supply chain management across multiple industries has made us the go-to 3PL choice for ecommerce companies like yours. To learn more about how we can help with your unique logistics needs, contact us today.