Logistics
Logistics
Third party logistics
Third party logistics (abbreviated 3PL) is a company’s use of a third-party service to outsource elements of the company’s fulfilment and logistics services. These companies offer comprehensive solutions for enterprise supply chains in packaging, warehousing, transportation and order fulfillment. The primary benefit of using a 3PL service to handle logistics is cost savings.
This service can help provide reliable fulfillment services online sellers, eCommerce or even brick-and-mortar stores that do not possess their own warehouse and distribution facilities.
3 main things which perfectly describe value of 3 LP:
Visibility
Connectivity across every mode for comprehensive tracking of assets, shipments, orders and inventory.
Customer Service
Deliver an exceptional customer experience while managing costs. And also, we are talking about efficient completion of many orders in one task. All shipment of goods will received to final recipients
Performance
Data-driven carrier performance and cost metrics to choose the best carriers to work with. Moreover, we can add here also creating promotional sets, labeling, inserting.
Each of the points actually plays a very big role. Something arouses a desire to trust, something inspires confidence in choice to any company. We want our clients to be confident in their choices, and we are always ready to help and give you a sense of security.
Benefits
Likewise, there are some nice benefits of 3PL in supply chain management:
3PLs have more leverage with freight companies than individual shippers do. Working with carriers on behalf of multiple customers, 3PLs can negotiate pricing based on volume and order frequency.
Using a third-party logistics provider allows you to offer fast shipping no matter where the order is being sent
Using a 3PL allows you to manage peaks and troughs more effectively without having to commit to capital when you don’t need to.
Fulfillment, warehousing and shipping come with major challenges of their own, so handing it off to the experts can really make a difference in the way you function – and it leaves you to focus on increasing your overall value to your customers.
The main services offered by a third-party logistics provider
Many 3PL businesses specialize in a huge variety of the supple chain. For example:
Procurement: Ordering and receiving goods from elsewhere in the supply chain
Order fulfillment: Receiving orders from customers, picking and packing and arranging for the orders to be completed and sent out
Storage: Providing temporary storage for goods in warehouses and similar locations
Transportation: Arranging for the consolidation, deconsolidation, management and transportation of goods
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