3PL or third-party logistics companies offer services like packaging, warehousing, inventory management, transportation, order delivery, and reverse logistics. Startups with limited teams & tight budgets and companies that expand their customer base or venture into new markets choose to outsource their logistics services to a third-party company. 3PL providers, with their expertise and reliance on tech-enabled platforms, help businesses to get rid of complex logistics management challenges. Besides these two, there are plenty of other reasons why you should select a 3PL provider to run your logistics operations. Check them out all below-
Why 3PL providers?
Here are a few reasons to hire third-party logistics providers for managing your logistics operations-
Contributes to saving time and money
When it comes to logistics management, saving time and money is highly important. 3PL partners relieve businesses from the trouble of building warehouses, hiring human resources, extending transportation, and investing in tech-enabled platforms or software. Besides, it also saves from the hassle of paperwork, audits, billing, and training staff.
Helps in focusing on core competencies
Outsourcing logistics services to a third-party relieves organizations from the hassle of hiring in-house logistics team, managing logistics operations, keeping track of team’s performance, changing the strategies to cope with new trends and customers’ demands. Such organizations can focus on the core competencies while ensuring that their logistics system is in expert hands.
Assists with business growth and market expansion
3PL companies contribute to business growth by allowing companies to expand their reach in different markets without investing in warehouses, equipment, manpower, and other resources. Serving more customers successfully leads to business growth and success.
Offers trained resources
3PL companies hire well-trained resources for accomplishing logistics processes efficiently. Moreover, they also use top technologies and logistics management software to accelerate the movement of goods from one place to another and then to the customers’ location. Apart from this, businesses can also be sure of the quality and efficiency of their logistics operations.
When to partner with a 3PL provider?
It totally depends on the particular logistics requirements of your business. However, there are signs that tell a business when to make a move. Some of these are-
- When you have huge customer base in a particular region or zone
- If you are not able to handle huge volume of orders
- If you want to offer faster delivery options to your customers
- If your warehouse and inventory management cost is increasing
How to manage 3PL partners?
If you, too, are planning to hire multiple third-party logistics partners, then it is imperative to have a system to manage them all. Otherwise, you might find difficulty in measuring their performance and delighting your end-customers. For this purpose, you can get Shipsy’s 3PL aggregator platform , which facilitates managing multiple 3PLs under one roof. Moreover, you can also measure their performance and get other valuable insights. Get a SaaS-based 3PL aggregator platform customized for your particular business requirements.
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