With competition at an all time high, the best way for any business to get ahead is efficiency. For businesses that create and sell physical products, a third-party logistics provider (3PL) can be the ideal way to improve efficiency.
Working with a 3PL has a number of perks, and in this complete guide, we’re going to run through the benefits of 3PL partnership and how it can grow your business.
What is 3PL?
In short, 3PL is the practice of outsourcing the entirety of your logistics operations. A 3PL provider handles everything to do with the shipping, storage and distribution of your products. They will receive your stock from you or your manufacturer, sort it, store it, pick and pack orders and dispatch them. They’ll also usually handle returns and some even offer additional services such as customer support management.
As a practice, 3PL has a wide range of benefits and is an increasingly common choice as a result.
Our Top 8 Benefits of 3PL
1. Cost Savings
Reducing your overheads is one of the key benefits of 3PL. Outsourcing your logistics to a 3PL reduces your need for staff and space, both of which are very cost-heavy. It also removes the need to invest in expensive equipment, hardware, software and the training to use it all.
Because 3PL providers already have all of these things in place, they can offer them as a service for a much lower cost than you would pay to implement and maintain them yourself.
2. Experience and Expertise
3PL providers are specialists in what they do, meaning they have a wealth of industry expertise. Partnering with an experienced 3PL company gives you access to this knowledge, which can be invaluable in helping you improve your own logistics processes.
It also means you no longer need to worry about potentially complex concerns like regulations or international shipping requirements.
3. Improved Customer Service
Working with a 3PL normally means faster order picking, dispatch and returns, which all contribute to a vastly improved customer experience. 3PL providers also use advanced order and inventory tracking software, drastically reducing the likelihood of mistakes. Collectively, this helps increase customer loyalty as well as your reputation.
4. Flexibility and Scalability
Another prime benefit of 3PLs is flexibility. If you own and operate your own logistics department, you’re under constant pressure to turn over enough to fund it. With a 3PL, on the other hand, you can scale your service usage up and down depending on the needs of your business.
This makes it far easier to navigate fluctuations in demand and market conditions, keeping your business robust.
5. Expand into New Markets
By relieving the time and financial burden of managing your own logistics, 3PL providers make it far easier to reach into new markets. They also often have established international networks, which include everything from overseas storage and distribution sites to connections with key regulatory bodies.
6. Access to New Technology
3PL providers typically use advanced technology to track orders, monitor stock levels and coordinate operations. These warehouse management systems (WMSs) not only help 3PLs work smarter, they also give you access to a range of benefits.
For example, you’ll be able to remotely monitor how much stock you have with your 3PL, see how many returns are coming in and why and access order metrics to guide internal improvements.
7. Customisation-Friendly
Customisation is a key benefit of 3PLs. You can easily request customisations to things like labels as well as giveaway items like stickers and business cards that can be packed with orders.
These help reinforce your brand identity and foster loyalty among your customers by making you stand out.
8. Prioritise Core Competencies
Arguably the biggest benefit of using a 3PL provider is the ability to simply focus on what you do best. Logistics is a specialised practice, and one that takes a lot of resources and knowledge to carry out effectively. Outsourcing it saves you time and money, leaving you free to divert all your attention to designing and creating products.
How to Choose the Right 3PL Partner
In order to get the most out of 3PL services, it’s vital to choose the right partner. There’s a range of criteria to consider when selecting the perfect 3PL partner for your business:
- Experience – evaluate how much experience the provider has, as this is a general indicator of the likely depth of their understanding
- Support – you need to know you’ll get the support you need if issues arise, so make sure the provider has easily accessible support
- Coverage – it’s important that your 3PL partner has established networks in the areas that matter to your business
- WMS – ask your potential 3PL provider about the WMS they use and ensure it’s compatible with your own processes and that it provides you with the information you need
Start your 3PL Journey with LTS Global Solutions
LTS Global Solutions is a reputable logistics provider with over a quarter of a century of experience helping clients make the most of the benefits of 3PL services. We have a modern facility at the heart of the West Midlands, a range of partnerships around the globe, a vast vehicle fleet and an advanced WMS, allowing us to deliver reliable, efficient international 3PL services.
Our wealth of experience and in-house capabilities mean we can offer warehouse storage, ambient storage, pallet storage, food warehousing and more. To discuss how we can help transform your logistics operations, reach out to our team today by calling 0121 753 0080, emailing info@ltsglobalsolutions.com or filling out our contact form.
