What is third-party logistics (3PL)?
You can have your inventory stored by a third-party logistics business. It will pick, pack, and ship your products. 3PL is the link that connects your production processes to your customers. Many of the services provided by 3PL firms are like those provided by order fulfilment organisations. Among the services offered are:
- Inventory management
- Shipping and receiving
- FTL and LTL freight shipping Full truckload (FTL) and less than truckload (LTL).
- Picking and packing
- Kitting and customisation
- Reverse logistics (returns)
Here are a few of the major trends in the 3PL space:
To fulfil customer demand, many 3PLs are focused on digital transformation by investing in end-to-end solutions and end-to-end visibility. For many 3PL customers, better visibility and orchestration of goods movement (both domestically and globally) has been a primary concern. Sustainability is a prominent trend in the 3PL industry, with several businesses implementing extensive sustainability plans. M&A (Mergers and Acquisitions) activity in the 3PL industry is also a major trend. Companies are looking for ways to build synergies through acquisitions to improve their end-to-end service offerings. So far in 2021, global mergers and acquisitions have totalled a record $2.4 trillion, up 158% from the same period last year.
How will 3PL benefit your company?
A 3PL can help you find ways to cut transportation costs and shorten delivery times. When you outsource your eCommerce fulfilment to a third-party logistics provider, you benefit from their expertise and focus.
Goods are sold at a lower cost. When you buy things in bulk, you get the wholesale price. The more you purchase, the cheaper your costs will be and the larger your profit margins will be.
You do not have to do it alone when you deal with a third-party logistics provider. Your 3PL partner has extensive inventory management knowledge.
You will have more control over your logistics. You get to pick an order fulfilment partner who will give your consumers the services they expect.
Faster delivery of your products. You might choose a third-party logistics firm with multiple warehouse locations to expedite the delivery of your products.
Customer assistance and return processing. This can be handled by the 3PL facility that supplied your merchandise increasing customer satisfaction and allowing you to swiftly replenish inventory.
Trident provides on-demand, scalable warehousing solutions for growing businesses. We are the people behind the revolutionary warehousing and logistics platform that is transforming the way thousands of businesses send, store and sell. As we grow and work to keep improving our platform, we are focussed on one thing: helping you grow too. This is what makes us the leading warehousing, logistics and fulfilment platform. Join our global warehouse community and get the most out of your spare space. https://trident-ww.com/register-your-warehouse