E-shop logistics: Why entrust fulfillment to a 3PL expert?
Do you own an e-shop and are you looking to streamline your logistics? Has the number of orders increased beyond a tolerable limit or are you not satisfied with the current situation? There is a solution: logistics outsourcing to a 3PL expert. What does the term 3PL mean, what are its benefits and when is it time to start thinking about outsourcing?
What is 3PL?
In the last part you have read what is needed to manage the logistics of an e-shop and how fulfillment can be understood. A 3PL (or 3P, third party logistics) is a company that is a provider of partial or complete fulfillment services. This means that they handle warehousing, packaging, transport, reverse logistics or all at once for their clients. It is your professional partner that takes over and is responsible for the logistics part of your business. It is therefore outsourcing logistics.
Benefits of working with a 3PL
The 3PL company focuses its attention only on logistics-related activities, which brings a number of advantages. For example, as a client of such a company, you only pay for what you actually use. It doesn’t matter what your peak season is. You pay for the actual space used in the warehouse or the work of the warehouse staff according to the number of your orders. You don’t deal with insurance and warehouse security, significantly reducing the personnel costs of your business.
At the same time, you also save significantly on shipping your packages to your customers. 3PL accumulates all of its clients’ shipments. This results in significant volume discounts that you would not be able to get as an individual. The same principle works for packaging material suppliers. A responsible 3PL also invests heavily in IT technology and warehouse equipment. This eliminates its error rate, optimises the flow of goods in the warehouse and gives you an accurate overview of its stock holding.
As a result, you save time on other relevant areas in the business such as product development, marketing and sales. You expand your business, and your 3PL partner helps you break down boundaries. When is the right time to outsource logistics? If you’re shipping 10-20 orders a day, you’ve reached a point where it’s a good time to start thinking about a 3PL. The goal of a 3PL is the satisfaction of their clients, which goes hand in hand with the satisfaction of their end customers.
Thinking about outsourcing logistics or need advice? Read our e-book or contact us.
