What is 3PL and its Major Benefits

    3 Aug by MTM Team

    As companies grow, introduce new products or enter new markets, it is likely for them to encounter new challenges. An increased customer base, updated manufacturing processes involving new technology, new areas of operations, more sophisticated customer service etc. are some of the factors that demand large capital investment and overheads. Organisations grappling with the issue of capturing a larger market share where established brands are already operating need to focus on devising strategies to succeed rather than worry about their supply chain management. Outsourcing their logistics, procurement, transportation and distribution functions to a well-known third-party service provider under such circumstances makes a lot of business sense.  From start-ups and mid-sized businesses to large enterprises and corporations, all companies can make use of the resources and expertise offered by reputable providers of 3PL in Australia. This could enable them to concentrate on their core competencies. Doing this opens up myriad business development possibilities as organisations look to innovate to build the next generation of nimble, data-driven business.

    Third party logistics refers to the outsourcing of some or all of your supply chain and logistics operations to another company.  Organisations wanting to streamline their operation, reduce costs, improve supply chain efficiencies and expand operations often outsource a variety of services and processes related to logistics and distribution to third party service providers. One of the major benefits offered by quality providers of 3PL in Australia is high levels of scalability. The facilities they offer are flexible and scalable, which means businesses do not have to worry about scaling up or down to respond to seasonal demand fluctuations.

    Third party warehousing and logistics services are available on an as-needed basis, or as a long-term solution depending on the specific requirements of the business. Another major advantage offered by reputable 3PL service providers is that they work well with both local and international distribution, offering speedy delivery owing to their multiple storage locations.

    Why choose a 3PL service provider?

    There are a large number of benefits that businesses enjoy if they choose the 3PL route. Often, with expanding operations, the need for warehouse space increases to an extent where managing it deflects an organisation’s attention from other important functions. Opting for 3rd party logistics warehouse services is the preferred option for businesses facing storage capacity issues. Similarly, businesses may not have the resources or the desire to invest in equipment and vehicles to meet their ever-increasing transportation needs. The large fleets of modern vehicles and equipment that a well-established 3PL service provider owns is a much more cost-effective solution. A good 3PL has the depth of experience to effectively and efficiently take care of order tracking, inventory management, freight forwarding, shipping/distribution order fulfilment, cross-docking, returns, IT management, shipping distribution, customer services, storage, transportation, handling, fulfilment, etc.

    3pl fulfilment services

    Irrespective of whether you have just started your online business or already are an established player in the segment, well-known 3PL fulfilment services providers can help you in several ways. They ensure that everything that is e-fulfilment-related—from purchase and inventory to packing, shipping, reporting and customer service—goes as planned without the slightest of glitches. They pick up and track your shipment every step of the way to ensure that your customers are happy and satisfied. With your e-commerce fulfilment covered, you can devote all your time and energy to the important day-to-day operations of your business.

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