In today’s interconnected supply chains, logistics has become critical for businesses of every size. To manage the storage and movement of goods efficiently, many companies turn to third-party logistics providers — commonly called 3PLs. This article explains what a 3PL is, the services it offers and the advantages it brings.
What is a 3PL?
A third-party logistics provider runs logistics processes on behalf of another business. Instead of leasing a warehouse, hiring staff and negotiating with carriers yourself, you hand those tasks to a specialist who does them every day.
Services a 3PL typically offers
- Receiving — inbound stock is received, checked and recorded.
- Storage — goods are held in a secure, organised warehouse.
- Inventory management — stock is recorded as it moves in and out.
- Pick and pack — orders are picked, packed and labelled for dispatch.
- Freight and distribution — consignments are booked with suitable carriers and handed over for delivery.
- Returns — returned goods are received, checked and restocked or set aside.
Some 3PLs run their own transport fleets; others, like MTM Logistics, broker freight through a network of carrier partners — matching each consignment to a suitable carrier, booking it and handing it over.
Advantages of working with a 3PL
Lower fixed costs
You pay for the space and services you use rather than carrying a lease, equipment and full-time staff.
Flexibility to scale
Volumes rise and fall — seasonally, with promotions or as you win new wholesale accounts. A 3PL can absorb those changes more easily than an in-house operation.
Expertise
Warehousing and freight are a 3PL’s core business. You benefit from established processes and people who know how to book the right service for each consignment.
Visibility
A good 3PL gives you a clear view of your stock and orders. MTM clients use our client portal at connect.mtmlogistics.com.au to see stock on hand values, see inbound and outbound orders, and enter orders to be dispatched.
Focus
With logistics handled, your team can concentrate on products, sales and customers.
Partnership matters
Services are only part of the picture. The best 3PL relationships are partnerships: the provider understands your products, customers and priorities, and you can reach someone who knows your account when something needs attention.
Is a 3PL right for you?
A 3PL often makes sense when warehousing and dispatch are taking up time you’d rather spend growing the business, when space is running out, or when you’re shipping enough volume to benefit from professional processes and carrier choice.
MTM Logistics is a boutique 3PL in Archerfield, Brisbane, providing warehousing, pick and pack and freight brokering for wholesale suppliers and direct-to-consumer brands. If you’re weighing up your options, we’re happy to talk.
Whatever your business moves, we’ll move it.