Why Companies are Increasingly Partnering with 3PLs?

Logistics Tech Outlook | Friday, April 29, 2022

Companies need not worry ensuring that things are accurate and on schedule if they work with a 3PL partner.

Fremont, CA: If companies want to manage their supply chain effectively, they need to keep one thing in mind: companies can't do everything. Companies today are aiming to increase their customer base and revenue, but every area of the organization must be able to accommodate the additional demand. This is where the value of 3PL becomes apparent.

Packaging and shipping processes are two commercial components that might suffer as organizations grow. It's easy to become overwhelmed by the quantity of orders and shipments companies have to handle, especially if companies are growing into online markets. More orders necessitate more packaging materials, shipping methods, storage space, and employees to help companies keep up—all of which cost money and effort. The amount of money they have to spend can stifle their business's growth and perhaps make it simpler to fail.

Third-party logistics, or 3PL, can assist. In a nutshell, 3PL is outsourcing everything companies need for packaging and shipping procedures. 3PL companies receive their products and take over the delivery, ensuring that they reach the proper customer in one piece.

The value of 3PL for growing organizations rests in the fact that the company now has more time, money, and space to invest in revenue-generating operations. Working with a 3PL provider is almost essential for businesses trying to expand into online markets to ensure that they can keep up with the influx of orders—especially during peak seasons.

3PL is a marketing technique that may be used by both B2B and B2C companies. Companies might be able to identify a 3PL that specialized in their business or that can manage the packaging and delivery of sensitive products such as electronics.

Many 3PL firms can do more than just pack things and ship them out the door. If companies are sending stocked retail displays to retailers, for example, a 3PL provider can manage the entire process — including assembly — so they don't have to waste time putting their display together before shipping it out. With installation included, companies will be able to free up valuable warehouse space that was previously used to store packaging supplies. As a result, they will save time and money by removing the need for additional staff to finish kitting and assembly before items can be sent.

Because a 3PL's sole purpose is to manage supply chains, they can handle bigger numbers of orders, even if they need to be constructed before being loaded into a truck. They'll also be able to handle any labeling and regulatory requirements that come with their packaging. Whether companies are sending food or chemicals, the 3PL partner will make sure it's clearly labeled on the package before it leaves the warehouse.

If companies want to have more control over their supply chain as a business, sometimes the best thing they can do is delegate it to someone else. Their focus should be on selling products as the firm evolves. 3PLs can not only help companies reclaim that time, but they can also help improve the efficiency of processes. The companies may know their business better than anyone, yet they may not be aware of the best packaging and shipping practices. This is what 3PLs are good at, and with their support, companies will be able to handle more orders from more locations without worrying about mistakes or running out of supplies.

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