Introduction
When you’re running an ecommerce business and need to move goods from point A to point B, you can only go so far with in-house fulfilment before it starts to become costly and stressful. Using a 3PL provider offers many benefits as an alternative and can be a smart business decision. They can assist in many areas, but here are three different reasons to consider why you should start using a 3PL. They can help you scale faster
Given that they assist you with managing your inventory and likewise help with transportation, warehousing and shipping, using a 3PL can be pivotal in scaling your company faster. The last thing you want is to get bottlenecked by inventory that isn’t moving. If your company has a large number of different SKUs (stock-keeping units) and you have to purchase multiple units in order to have enough items on hand at the warehouse, then it’s possible that some SKUs may be sitting on shelves longer than they should be, which can put lots of additional pressure on your business, as you’re paying for items that could have been purchased when needed or sold to customers before being returned. 3PL providers can often offer solutions to help avoid situations like these, providing lower minimum order quantities, which makes ordering more efficient. You also might find ways of reducing waste during packing processes by using less packaging material than necessary for each shipment, which has positive effects beyond being able to scale faster. Enhanced customer service
There’s a lot of considerations when looking at different logistics services, but one of the most important is how your customer service will be impacted. Customer service is one of the most important aspects of any business. In order to continue generating new customers, as well as keep your existing customers from coming back, your products should be delivered in a timely and consistent manner. A third-party logistics (3PL) provider can help ensure that your customers receive exceptional customer service from you every time they call, email or visit your website with their questions and concerns. Given that most 3PL companies have extensive networks of warehouses across the country (and also internationally), this can assist in ensuring that delivery times are reduced and your customer has an incredibly more positive experience. As 3PL providers have a vested interest in your company’s success, because they are paid based on performance, they want to ensure that your shipments meet their standards and arrive on time. This will also ensure that your customer’s have an improved experience. 3PLs can lower your operating costs
Perhaps the biggest single reason you would want to start using a 3PL provider is due to the cost savings they can offer. As 3PLs service as a single, centralised hub for all aspects of your supply chain, including warehousing, transportation management, and order fulfilment, there are significant cost savings passed onto you, which you can pass onto your customers to create a more competitive price point. If you use an international provider it also means that whether you’re shipping to one location or multiple locations around the globe, all transactions will go through one company. Given the expertise, experience, and efficiency that you gain access to when you start working with a 3PL, the ability for them to lower your operating costs is a huge advantage. Utilising their own software and hardware systems, and integrating them with your business can also help as you scale. Because 3PLs have such a strong ability to handle growing demand, these lower operating costs are passed on even as your business continues to scale, meaning you don’t have to be overly concerned about huge jumps in overheads. Conclusion
There are many reasons why you should consider using a 3PL company, far more than the three that we’ve discussed here. That being said, the way they can help you scale faster, enhance your customer service and lower operating costs are all extremely advantageous.
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