What is Third Party Logistics (3PL)

Every aspect of an eCommerce business is delicate and requires detailed attention. 

One vital aspect is logistics.

It’s one of the factors that influence your business trajectory. 

For small eCommerce companies, third-party logistics (3PL) is key to customer satisfaction. 3PL is a surefire way to optimize your supply chain management without glitches. 

That leaves us with a golden question: what is third-party logistics? How does it position your business for explosive growth? 

We’ll distill all the answers to this question into this article. Let’s start by exploring the meaning of 3rd party logistics. 

What Is a 3rd party logistics (3PL)?

Third-party logistics refers to specialist businesses employed by other companies to complete some tasks in the supply chain and help deliver goods to customers. 

They are a crucial link between manufacturers or brands and customers. These third-party businesses offer logistic services to eCommerce companies. 

Due to their expertise, they help their customers adopt responsive and agile supply chains. With the unpredictability in today’s market, 3PL is undoubtedly a growth influencer.  

3PL companies also use their expertise to integrate forward-thinking ideas into business models for satisfaction.

The services they offer include but are not limited to: 

• Inventory forecasting 
• Freight forwarding  
• Order fulfillment  
• Warehousing
• Transportation 
• Picking and packing 

 

Why Do You Need Third Party Logistics?

People erroneously assume 3PL merely takes off workload. Although this is one of the advantages, it’s not the prime benefit. 

So, why do you need a third-party business for your logistics? 

Businesses thrive on developing a competitive edge in the market. And the expert’s knowledge from 3PL companies helps you achieve it. 

Hence, all businesses crave this valuable input to take over the marketplace. 

 

Benefits Of Employing A 3PL Provider

 

Focus on Core Business Activities

Deploying internal resources into core business activities yields quantum results.

Consequently, outsourcing your logistics to experts allows you to focus on other business matters without neglecting critical tasks on your supply chain.  

 

Cost Reduction

Since 3PL companies solely deal in logistics services, they have an extensive reach that supersedes your company’s supply chain function.

This also translates to an exclusive network in the logistics industry.  

These factors and others help them successfully negotiate and reduce overhead costs.  

Additionally, they may offer substantial discounts to their customers, helping you achieve quantifiable results despite a shoestring budget.

Drives scalability and flexibility

3PL businesses provide flexibility and scalability in supply chain management.

Hence, distribution and supply resources depend on the business needs per time. 

 

Expertise and Experience

The global market encompasses strings of diversities. You may get caught in a web of complexities without expertise or experience. 

With third-party logistics, you can tap into a wealthy bank of experience and prowess. They are knowledgeable in import, export, international compliance, etc. 

So, if you want to extend into the international market, 3PL can save you expensive delays. And offer a smooth entry into new regions.

 

Impel Market expansion and business growth

Navigating unfamiliar market terrain is onerous. But a 3PL supply chain management allows you access a new market, thereby driving growth. You don’t even need an established presence. 

Inventory management and provision of logistics-related infrastructures rest on the third-party logistics company. Without spiking your expenses or sponsoring training about the nuances of the new market, your business can expand.  

 

Boost Customer satisfaction

All the above benefits are simply the means to an end. The end is customer satisfaction. Show us a happy customer, and we’ll show you a successful business. 

Differences Between 3PL and Contract Logistics 

People often use 3PL and contract logistics interchangeably. However, they are not the same. 

What are the differences between contract logistics and 3PL?

 

Inventory Management 

Contract logistics offer services limited to transportation and delivery. Tech-enhanced 3PL tops these two services with inventory management for stock handling.

Third-party logistics also delivers updates for easy tracking. An example of a 3PL company with reliable inventory management is Lecangs.

 

Delivery

3PL ensures its customers get the best rates and deals. They partner with carriers at different levels to negotiate a beneficial rate for manufacturers and brands. 

On the flip side, contract logistics merely manage product delivery management tasks.

Flexible Retail Fulfilment Procedure

The flexibility embedded in the 3PL retail process is one of its admirable features. Unlike contract logistics, the best third-party logistics allows you to control some supply activities online. 

 

Warehouse Management 

With the aid of Warehouse managements systems, 3PLs delivers efficiency by ensuring inventory travel down the supply chain fluidly. It also offers a transparent system that enables you to track the fulfillment process.

While contract logistics only improves internal logistics.

An exemplary display of exquisite warfare management is Lecangs 3PL. Undoubtedly, this excellence is tied to their firm coverage across the west, east, and mid-USA, where they have numerous warehouses. 

 

Conclusion

When the fate of your business depends on a service, it’s essential to subscribe to the best. 

A company that offers warehousing, credible inventory management, reselling platform, logistics, delivery, and eCommerce shipping is certainly one of the best.

Lecangs offers all those services effortlessly. So, what’s your excuse?

By James Brandon