3PL Logistics and Warehouse
What is 3PL Logistic?
Third Party Logistics (3PL) means that there is a third party involved in a company’s logistics operation, in addition to the shipper, receiver and carrier. The 3PL Logistics does not, however, take any ownership of the products being shipped. 3PL have become a key component in the supply chain of many brands. We take the orders and the third-party logistics provider will fulfil them. It is an extremely simple and seamless process. Customers never have any second thoughts about the handoff between received orders and it’s fulfilment. A 3PL logistic is a connection in the supply chain brands use to outsource parts or even all of a business fulfilment and distribution services.
When Do You Need 3PL Warehouse?
The worse thing to do is to procrastinate and wait until your overwhelmed by order growth. Breaking the fulfillment promises you've made with your customers can be detrimental to your brand. It will also become a barrier to you reaching the full potential of your business as it’s blocking you from growth.
Is 3PL Logistic and Warehouse Right For You?
Are you running out of pricy inventory storage space?
|Compare your current expenses with estimates from third party logistics. Brands tend to exclude storage costs in their fulfilment expense calculations, which you don't want to do. Determine if bundling storage costs with obtained fulfilment is a better value for your business.|
Are you fulfilling more than 10-20 orders a day?
|If yes, you want to calculate the costs of partnering with a 3PL to keep your profit margins strong and sturdy. Then estimate the potential growth (opportunities you are not currently able to pursue). If your answer is no, it is not yet time to add 3PL to your team.|
Can your infrastructure handle the demand?
|If you are expecting an ongoing spike in order volume, not just as a one-time rise in sales or marketing promotions then you want to estimate the costs and headcount that is necessary to meet the demand on your own. Then compare with the costs of outsourcing fulfilment.|
Types of 3PL Logistics and Warehouse Providers:
3PL Warehouse Full Services
Offer brands an end-to-end solution that gets orders to your customers as easily and quickly as possible. 3PL Logistic ensures you to have the correct merchandise at the right location so the orders ship faster and cheaper.
Full-service 3PL warehouse fulfillment offers:
- Inventory Intelligence
- Brand fulfillment experience
- Easy interaction
- Same-day fulfilment
3PL Warehousing Distribution
You’ll need a larger network of 3PL warehouses if you are going to be promising customers advanced delivery. You will also require accurately forecast inventory levels to suitably stock warehouses in your network.
Transportation-based 3PL shuttles between locations are a smart choice. They can transport inventory between your factory and 3PL warehouse. If considering a parcel transportation provider have the following in mind:
- Origin location
- Destination location
- Shipping methods
- Service levels
- Pricing and discounts
- Taxes/export taxes and duties