Logistics and supply chain functions have experienced a different kind of pressure lately – given the increase in online shopping, customer expectations, uncertain markets and other factors. Several businesses, while trying to match these variables are also facing the logistics and supply chain challenge in terms of resources, cost and operations. This is where a 3PL company can enhance your business with their expertise and operational efficiency.
What is a 3PL?
A 3PL, also known as a Third Party Logistics, is a company that you can appoint to handle all your logistics and supply chain operations. 3PLs, like ProConnect Integrated Logistics, specialize in logistics services and solutions ranging from warehousing and storage, international and national shipping, import and export custom clearance, fulfillment, distribution and delivery. While all the complex, labor intensive logistics operations are handled by a 3PL, you can concentrate on the core operations of your business. 3PLs thus can add value to your business and give you a competitive advantage over others.
How 3PL Can Give You Competitive Edge?
While you may turn to a 3PL with an objective to reduce your logistics operations cost, there are several other reasons a 3PL partner can add value to your business and provide you a competitive edge. Here are some of the points that top the list –
- Industry Experience and Expertise – A 3PL has the needed experience, network and expertise in handling not just a particular set of products, but a plethora of goods and products. A 3PL, like ProConnect Integrated Logistics, has years of experience in the business and also dedicated teams for various logistics functions like freight forwarding, warehousing, customs clearance, etc. that can be aligned to give you the best possible service backed by industry experience.
- Lower Operational Cost – Like many businesses, even you would have evaluated the possibility of building an in-house logistics function or having your own warehouse facility. Building a logistics function in-house is a costly affair, it requires investment in warehouse space, trucks, vehicles, expert personnel, labor, technology, etc. that add to the operational expenses. Many businesses have reduced their costs by appointing a 3PL to handle the entire logistics for your business from warehousing, fulfillment to shipping and deliveries. This is a win – win for both – you get to concentrate on your core business, while your 3PL partner ensures your logistics operations is handled by the best team.
- Higher Efficiency with Advanced Technology – A 3PL, being at the forefront of the logistics business, will have advanced technology along with efficient and expert workforce that will provide you a competitive edge. 3PLs have technology that enable businesses to view the movement of their inventory right from shipping, to delivery. When appointing a 3PL company, you can take advantage of the already available technology with the 3PL, instead of having to invest on your own.
Technology like WMS (Warehouse Management System), real time shipment tracking, inventory stock reports promote efficiency, provide transparency and give insights on the market and consumer trends, which would help you take informed business decisions.
- Streamline E-commerce and Fulfillment – Rapid growth and competition in the e-commerce industry have raised the customer expectations of same day or next-day deliveries. A seamless flow of goods from production to customer’s doorstep at a record low time has put pressure on the supply chains. Many 3PLs have gained the expertise in fast order fulfillment – picking, packing, labeling, and doorstep delivery, giving you the competitive edge. One of our previous posts gives a deeper insight on the benefits of partnering with a 3PL for Last Mile Delivery, you can read it here.
- Reverse Logistics Service – Reducing waste and increasing revenue is a must for every business. In case of e-commerce businesses, reverse logistics plays an important role, wherein you can repack or recycle the returned product and reduce waste. A 3PL carefully plans its distribution and reverse logistics service to provide the best possible service to your customers.
- Value Added Services – With a vast network, connections and years of experience, a 3PL provides its customers several value added services. They have a dedicated customer service team that can cater to any kind of logistics requirement that you may have. Additionally, 3PLs also provide route planning, shipment planning, compliance assistance and other advice that will help you with smooth logistics operations.
There are many other ways through which a 3PL can provide a competitive edge to your business, these are some of the top points in our list. 3PL also
If you are looking to appoint a logistic partner or to switch from your existing logistics provider, talk to us. With vast global network of agents, 21 warehouses and smooth e-commerce fulfillment services in UAE and Saudi Arabia, we could be the best fit for your business, Evaluate our services today!