A third-party logistics (3PL) provider enables the smallest of ecommerce businesses to compete with large retail organizations. What’s more, a 3PL can reduce overhead and free up a significant amount of time for specialist companies that don’t have the means to efficiently complete order fulfillment.
Although many businesses handle fulfillment in-house, hiring 3PL companies can open up markets and opportunities previously out of reach. If your business is struggling to meet order volume demand or lacks fulfillment efficiency, here are some top reasons for outsourcing logistics to a 3PL.
One of the main advantages of outsourcing to a 3PL provider is the ability to benefit from economies of scale. Reputable 3PL companies operate out of large fulfillment centers and employ industry best practices.
There are advantages to having a comprehensive in-house fulfillment service. However, it requires a high initial investment and on-going operational costs. Logistics services are suitable for large scale assembly, packaging, warehousing, and inventory management.
By avoiding all these costs, a business can save time and money, increasing overall cost-effectiveness and maximizing profits.
As specialized businesses, 3PL services provide consistent logistics operations. Rather than being overwhelmed by orders and fulfillment problems, you can rest assured that your customers are experiencing increased benefits from fast delivery times and premium order fulfillment.
Gain a Technological Advantage
Data and technology play integral roles in modern logistics. Management systems and specialized analytical engines can provide detailed reports on the supply chain’s efficiency and productivity. 3PL’s use technology daily to improve processes, giving them distinct advantages over in-house supply chains.
By hiring a 3PL, you can gain a technological advantage and benefit from the highest level of supply chain management.
Enables your Business to be Flexible
It’s common for businesses to experience seasonal sales fluctuations or periods of mixed order volumes. An outsourced 3PL allows clients to be more flexible by offering scalability of labor, warehouse space, and transportation.
Most 3PL’s offer shipping consolidation services, enabling them to use volume discounts while satisfying their customers’ large or small orders.
Allows Businesses to Focus on Core Competencies
Dealing with order fulfillment can take up a great deal of time and resources, particularly if you don’t have the necessary space, equipment, or expertise. Hiring a 3PL allows you to focus on your business’ core aspects, including improved customer service, manufacturing, and marketing.
New Market Expansion
Having access to 3PL fulfillment centers and transport links in various locations makes for seamless market expansion. Your business can easily position its supply chain in markets where you had no previous presence.
If your business plans to expand internationally, it’s highly likely that you’ll require a reputable 3PL provider to handle fulfillment and distribution effectively.
As logistics is such a costly and complicated process, outsourcing to a 3PL reduces the level of risk involved in order fulfillment. Your business is free from logistics based penalties, fines, and the consequences of a failed investment. In many cases, this enables businesses to save money.
Choose the Right 3PL Provider
Once you’ve decided that outsourcing order fulfillment is the right choice for your business, it’s vital that you choose the right provider. Opt for a 3PL with a strong reputation and experience in your industry.
Contact Asiana USA today for further information from a world-class shipping and transportation organization. For a quote or additional help, call us at (855) 500-1808.