The shipping industry has changed dramatically since the rise of e-commerce. While the internet has made it easy for entrepreneurs to launch online stores and customers to shop online, items that are ordered still need to get to the customer in the most efficient way possible.
As an answer to this rise in shipping needs, third-party logistics providers (3PLs) have become a solution to many shipping needs—but what kinds of benefits do they bring? What sets them apart from other traditional shipping methods?
Whether you’re in the stages of developing your online retail store or are simply looking to evaluate your current processes, these benefits of 3PLs to e-commerce distribution could be one of the solutions you need.
1. Warehousing
One of the many benefits to 3PL is being able to have an organized and efficient warehouse or storage facility. Some 3PLs go beyond merely optimizing your inbound freight and storage and can also organize your inventory and handle order fulfillment. This includes both transporting and prepping shipping containers for transport. Because the 3PL is using their own employees, warehouses and equipment, you will only need to worry about paying for their services. This can save a company a great deal in man-hour and cost to train new employees.
2. Supply Chain Optimization
Beyond just handling the shipping and storage of your inventory, a 3PL can also analyze and evaluate your supply chain processes. By doing this, your carrier will be able to identify any gaps in your supply chain and offer solutions, ultimately saving you costs on logistics.
Evaluating your supply chain as a whole will also help to ensure your customers have a better overall experience. The goal, of course, is to provide your customers with the best customer service experience possible.
3. Expertise
Yes, expertise in the 3PL e-commerce distribution game is a huge benefit. 3PL carriers have become experts in the e-commerce shipping world due to advances in technology, industry knowledge and many other factors. 3PLs are able to accurately pick and pack high volumes of small orders in an efficient manner. In fact, many traditional retailers are making the switch to 3PL because a carrier allows them to focus more on store management. Utilizing a logistics expert such as a 3PL carrier will ensure the most efficient and effective order fulfillment process for your business.
4. Growth
An effective 3PL carrier will not only be able to meet your distribution and shipping needs but will also be able to grow with your company. For example, you may be currently shipping to customers in your country, but what if you grow and expand your market? Will your current 3PL be able to handle those new markets with the same level of efficiency as before?
A 3PL that can grow with your company and take on the additional workload that comes with expanding is crucial to e-commerce stores. 3PLs that can develop with your company will be able to provide the same level of service throughout the entire logistics process as you scale up.
5. Protect Your Brand
There is an understandable fear, at times, when it comes to outsourcing any part of a company. Consistency is crucial for your customers and you want your brand message to be standard throughout all the different service offerings you provide as a company.
One of the ways 3PLs are attributed to brand consistency is that many carriers are now offering clients the ability to use their own branded packaging and options that won’t include the carrier’s name on it. This means your branding will be constant throughout the entire logistics process. Additionally, some carriers will even offer custom packaging for your company.
Your brand is important to you, and a reliable 3PL carrier will understand that and not try to infringe upon your brand in order to build their own. The integrity of your brand will remain intact while your supply chain processes become more efficient.
6. Easy Integration
Another benefit 3PLs can offer is the ability to effortlessly integrate with your current ecommerce store platform. A 3PL that easily works with your existing systems and hosting platforms will provide a seamless order fulfillment process. With a flawless integration, your customers won’t have to worry about delays in shipments or trouble tracking packages.
7. Protected Shipments
One of the most important benefits of utilizing a 3PL is the safety of your shipments. A good 3PL carrier will have procedures in place in the event of a disaster. Your inventory and shipments will always be protected in the event they are lost, damaged or stolen.
Additionally, not only does this benefit your company, but your customers will also have peace of mind. With a lost, damaged or stolen package policy comes a precise returns procedure.
Outsource to Focus Yourself
Running a business means, ultimately, being responsible and accountable for everything that occurs within the company. You have to have a hand in every aspect of your business, but you don’t have to be the expert in every aspect.
If you find yourself spending more time learning about shipping and order fulfillment and feel like you’re neglecting other aspects of your business, then it’s time to outsource. Let the 3PL handle your inventory, supply chain and shipping needs. Free yourself up so you can focus on other aspects of your business—maybe something you enjoy much more, want to change or something that simply needs your attention immediately.
Whatever the case, take advantage of 3PLs when possible to meet all of your e-commerce distribution needs. You’ll no longer worry about inventory storage, shipment tracking or order fulfillment. Let the experts handle that for you.
