Businesses that keep getting bigger are getting more dependent on logistics to move their products overseas and domestically.
The more volume you are working with, the more complicated moving your product can become. Moving these products can create operational, supply chain, and monetary inefficiencies.
Companies have found an answer to some of these problems by using a 3PL Fulfillment method. Let’s take a look at some of the most common benefits of using a 3PL company.
1. Cost-effective
Utilizing a 3PL fulfillment method is an economical and cost-effective solution for companies. With 3PL, companies only pay for the services they use, rather than investing in their logistical facilities.
A 3pl fulfillment center holds disparate inventory across multiple warehouses. They can effectively manage inventory in diverse geographical locations, which increases cost efficiency. Lastly, 3PL provides cost-effective access to value-added services, such as:
- custom order fulfillment
- returns management
- deluxe packaging
All of these advantages benefit companies, allowing them to reduce their supply chain costs and increase their profit margins.
2. Scalability
A 3PL fulfillment method is an ideal way to scale up your business. It helps you to expand your reach and provides more reliable and consistent service for your customers. The 3PL takes on the challenges of managing your:
- order management
- warehousing
- delivery services
This allows you to focus on other areas of your business. With a 3PL fulfillment method, your business can easily add or remove capacity depending on current demands. It also allows for customized services and varying levels of service.
3. Increased Efficiency
A 3PL can help reduce the time and cost associated with the order fulfillment process. This is achieved by managing the warehousing, packing, shipping, and delivery of goods directly to the customer. This eliminates the need for in-house staff to manage these processes. Thus, allowing them to focus their time on selling, marketing, and customer service activities.
Additionally, a 3PL can improve customer service by allowing for faster delivery fulfillment times and more efficient tracking abilities. This improvement in customer service can help to increase sales of goods by making the customer satisfaction experience smoother and quicker.
4. Access to Expertise
Using a 3PL fulfillment method provides access to a tried and tested set of expertise for companies to leverage for their supply chain needs. This wide range of expertise incorporates the most up-to-date technology. They have the knowledge from a variety of sources. Thus, providing companies with an invaluable edge in their processes.
3PLs have a deep knowledge in:
- systems
- processes
- capabilities
All of these allow them to accurately assess the most cost-effective and efficient ways to expand a company’s operations. Furthermore, companies have access to a wide network of relationships with suppliers, providers, logistical experts, and more. These relationships provide discounts, special deals, and better distribution paths that would be difficult to find without 3PLs.
5. Focus on Core Competencies
A company can outsource the entire fulfillment process to a third party, saving time and money as well as gaining access to technology and personnel to manage the process. Rather than having to handle all the back-end operations from sorting orders and tracking inventory to packing, shipping, and receiving returns, the 3PL handles everything and provides the company with only the reports they need.
Take Advantage of the Benefits of Using a 3PL Fulfillment Method
Using 3PL fulfillment can significantly improve your business operations. Take the next step in streamlining your business’s processes and unlock the full potential of your company through 3PL fulfillment by contacting an experienced team of third party logistics experts today.
For more helpful reads, visit our blog page.
