What is 3PL Logistics? How does a third-party warehouse work?
3PL, or third-party logistics, is a fulfilment service that provides cost-effective warehousing to scale your E-commerce business.
Introduction to Third-Party Logistics (3PL), Fulfilment Services and Warehousing Solutions
What is 3PL Logistics? An Overview of 3PL Fulfilment Services
3PL services work in partnership with retail companies to handle the fulfilment of orders. Many firms outsource the logistics side of their operation to 3PL fulfilment specialists, freeing up their own staff to concentrate on core business activities.
Benefits of Using Third-Party Logistics Services
Aside from liberating your staff from the logistical grind, third party logistics providers enable even the smallest companies to benefit from economies of scale. 3PL companies can also give businesses access to the latest in fulfilment and logistics technology and techniques, enabling them to improve their customers’ ordering experience without the need for upfront investment.
Importance of 3PL Fulfilment
3PL allows you to maintain your focus on your core business activities, secure in the knowledge that your supply chain and fulfilment operation is operating at maximum efficiency. This gives you the time and the space to expand into new markets while reducing the costs associated with warehousing and transportation.
Why Outsource Warehousing to 3PL Providers?
3PL fulfilment services provide other benefits too. In addition to accessing state of the art equipment and procedures while reducing overheads, working with a 3PL logistics company can give you scalability. You can start small and increase the amount of product you ship through your 3PL E-commerce fulfilment partner as gradually or as quickly as you need – something that is exceptionally useful if your business experiences an unexpected spike in orders.
Get a free quote todayKey Features of 3PL Fulfilment Services
Cost-Effective Warehousing
3PL warehousing is incredibly cost effective. Storing inventory takes up a lot of space, and space is probably the second highest overhead a business has, after staffing. Outsourcing that inventory storage to a third party allows you to take advantage of economies of scale that most businesses could never access at your own premises.
Efficient Inventory Management
One of the most important aspects of order fulfilment and logistics is knowing what inventory you have, where it is and how to get it where it needs to be. A good 3PL warehouse will have systems in place that can answer all of those questions about every item of inventory instantly. At our 3PL warehouses, every item is barcoded and scanned every time it moves, allowing both ourselves and out clients to know where everything is at all times without ever needing to go looking for it.
Order Processing and Fulfilment
Accurate order processing is a crucial part of any 3PL warehouse management system. By outsourcing to a 3PL company, you gain access to the most advanced technology and experienced specialist staff, ensuring incredibly accurate and efficient order processing without the need for upfront investment.
Returns Management and Reverse Logistics
3PL E-commerce fulfilment takes care of getting your products to your customers. But it can also take care of returns. Our 3PL warehouse systems can receive and check returns as well as taking care of restocking and disposing of returned items in accordance with your specifications.
How Third-Party Logistics Services Work
Step-by-Step Process of 3PL Logistics
3PL E-commerce fulfilment will generally follow a defined series of steps. Orders are received and processed, the desired items are located, picked, sorted and packed then dispatched using your preferred shipping provider. Our advanced systems ensure that these steps are followed accurately and quickly in order to maximise customer satisfaction.
Integration with E-commerce Platforms
Our 3PL services are designed to integrate with all of the leading E-commerce platforms, which means that when you receive a customer’s order, we receive it too, enabling us to begin the fulfilment process as early as possible.
Customisation and Scalability
Outsourcing to 3PL companies does not mean that you cannot add a personal touch to your packages. We offer a range of customisation options to ensure that all items are packaged appropriately. We can customise packaging in a number of ways to make the parcel your customer receives uniquely yours. Working with us also gives you the ability to scale your fulfilment operation up and down according to your needs without having to invest in infrastructure – particularly useful if your business is seasonal.
Industries Benefiting from 3PL Fulfilment Services
Every industry that needs to send products to customers benefits from 3PL fulfilment services. The most obvious adopters of 3PL fulfilment services are E-commerce and retail businesses, but manufacturing businesses, consumer electronics businesses, healthcare companies, pharmaceutical businesses and many more all benefit from outsourcing their shipping and fulfilment operations to third party experts.
Start your 3PL journey here -->F.A.Qs
How do 3PL fulfilment services benefit e-commerce businesses?
When you outsource fulfilment, 3PL companies provide numerous benefits. Alongside cost savings, scalability and expertise which help to deliver an improved customer experience, access to superior technology can give you data- driven insights and analytics to help you optimise the supply chain. Customisation even allows you to maintain clear branding. Very few things can be considered “all upside”, but 3PL logistics just might well be.
What are the key services provided by 3PL companies?
3PL services include advanced inventory management, accurate picking and packing of orders, end-to-end transport of orders to customers, freight forwarding and transport management services. Your business can also benefit from value added services such as customisation to deliver a more personalised service to your customers.
How does 3PL warehousing differ from traditional warehousing?
Traditional warehousing requires you to take care of all aspects of storage and order fulfilment, while 3PL warehousing puts these functions in the hands of experts. 3PL warehousing allows for increased efficiencies and so drives cost effectiveness. Because costs are agreed, 3PL warehousing also reduces cost fluctuations to keep overheads more stable.
Can 3PL providers handle international shipping and logistics?
When they embrace 3PL, UK businesses gain easier access to the rest of the world. When you use 3PL fulfilment services the complex job of filling out the customs forms and other export paperwork is taken out of your hands by experts. This reduces error and delay and streamlines the international shipping process.
What cost savings can I expect by using 3PL services?
There are many cost savings attributable to working with 3PL logistics companies. Shared warehousing means you get scalability but only pay for the space you use and you do not have to pay for warehouse management systems. You can also take advantage of numerous economies of scale.
How can I ensure a smooth transition to using a 3PL provider?
To ensure a smooth transition to 3PL warehousing you should work with your chosen 3PL warehouse company to develop a clear plan and thoroughly test all systems to ensure that they work as intended before going live. Once third- party logistics systems are in place continue to work closely with your fulfilment service centre to monitor and adjust systems as required.