Third-Party Logistics (3PL) Providers : Important Things You Must Know

In today’s competitive environment, it’s not uncommon for growing businesses to struggle while managing assembly, packaging, warehousing, and distribution processes in-house. There comes a time when they start facing extreme inefficiencies and complications in their supply chain. They require additional support and assistance to manage different processes associated with order fulfillment.

Thankfully, this is where a Third-Party Logistics (3PL) comes in handy. A third-party logistics company provides small businesses access to a vast network of resources. They reduce overhead costs related to billing, IT, and operations and offer competitive rates to small businesses with insufficient resources and budgets.

 Third-Party Logistics (3PL) Basics

3PL providers provide a one-stop solution for the various processes associated with order fulfillment, such as assembly, packaging, warehousing, and distribution. They help business owners bring more transparency and efficiency to the order fulfillment process by providing access to the latest tools and software.

Partnering with the best Houston shipping company provides you access to modern warehouses. They tie up with trusted carriers for freight and shipping and follow industry best practices that help your business stay up to date in today’s fast-paced and competitive marketplace.

The Different Types of Third-Party Logistics (3PL) Providers

Transportation

There is no doubt that a good transportation system can bring a positive impact on your business. Many 3PLs specialize in transporting goods from one location to another. It can include transporting goods from manufacturers to your warehouse or your company to the customer’s doorstep. With the help of freight forwarders and small parcel shippers like UPS, they help reduce transportation costs, gain a competitive advantage and improve customer satisfaction.

Warehousing, Fulfillment, and Distribution

These services are offered by most 3PL providers and include basic fulfillment services such as storage, fulfillment, pick and pack, shipping and returns. Companies often outsource some or all of these services to meet their fulfillment and warehousing needs. 3PLs providing these services manage transportation and shipping paperwork, storage, inventory management, same-day shipping, stock rotation, and return services on the company’s behalf.

Financial and Information

3PLs specializing in these services streamline the logistics process of your company by providing a range of services, including accounting, cost control, freight forwarding, inventory tracking and management, and much more. Large e-commerce companies commonly use these services.

If you think your order fulfillment process lacks efficiency or experiencing delays, here are some reasons to partner with a 3PL provider.

  • Save Time and Money

As a business grows, handling the high volume of orders becomes more expensive. To meet increased customer demands, businesses must invest in warehouse space, warehouse management software(WMS), labor, workers comp, liability insurance, etc. For instance, opting for international shipping services from Houston to Nigeria eliminates the need to invest in the warehouse space, logistics operations, labor, and technology, saving you more money and time.

Instead of investing in the various elements of the order fulfillment process, companies can focus on their core competencies, such as marketing and product quality.

  • Vast Industry Expertise

It’s not a secret that most business owners are not familiar with every aspect of shipping and logistics. Luckily, this is where 3PL providers come in. 3PLs offers a team of knowledgeable and experienced professionals that are up to date with the latest shipping and logistics expertise. What’s more, 3PL companies incorporate the latest technology and practices in Auto Shipping services to Nigeria from Houston that help them bring more efficiency and transparency to the supply chain process.

  • Expand Your Reach

Confining your business in a particular region can be problematic and limit your business growth. Partnering with a 3PL provider allows you to expand your business into international markets. Shipping orders from a single location is indeed a more time and money-consuming task.

3PL companies are backed by an extensive network of fulfillment centers, something that is difficult to achieve via in-house fulfillment. Having fulfillment centers in almost all the important global cities helps 3PL providers to facilitate fast and safe delivery of the products.

Final Thoughts

Fulfillment may not be the most enjoyable part of your business; it can’t be overlooked. Delays in fulfillment may result in loss of customers and money. Partnering with a reputed 3PL provider helps you achieve exceptional fulfillment leading to more positive feedback and loyal customers.

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