As companies grow and scale their business, they may consider outsourcing fulfillment and logistics services. To fulfill orders, companies may decide to partner with a third-party logistics service (3PL) to handle their shipping logistics.
A third-party logistics service (3PL) is a company that offers outsourced logistics services to its clients for some or their entire supply chain operations. 3PLs offer a variety of services related to shipping logistics. Some of these services include warehousing, order fulfillment, distribution and transportation, and furniture installation.
Why Should Your Business Partner With a 3PL Service?
Outsourcing shipping logistics to a 3PL service can offer numerous benefits to your business and give you time to focus on other areas of your business. Are you thinking about outsourcing your logistics to a 3PL? Here’s how your company stands to benefit.
1. Reduced Logistics Costs
Renting out or leasing warehousing space, investing in logistics equipment, and hiring the human resource required to handle shipping logistics can be costly. Partnering with a 3PL service can save you from incurring these costs. What’s more, you’ll also save time by having the 3PL manage your inventory and paperwork, allowing you to focus on your core business.
2. In-Depth Knowledge
Shipping logistics can be quite complicated. From order fulfillment to warehousing and distribution, the processes can be challenging. Working with a 3PL can alleviate your business from having to deal with these challenges. When you partner with an experienced one, your business will get access to the latest and best practices in logistics. This experience can prove to be particularly useful when handling complex orders like international shipments.
3. Scaling
Some businesses experience a significant fluctuation in demand for their products depending on the season. If your business is like this, partnering with a 3PL can help you to scale your storage, transportation, and human resource to match the increase in demand for products. 3PLs can also prove useful if you expand into new regions thanks to their network of warehouses. Thus, they can facilitate the fast shipment of products, allowing you to scale your operations at a low cost.
4. Resources
3PL companies tend to have access to a wealth of resources in-house supply chains don’t. Often, they have access to technology, knowledge, and networks your business may not have. For instance, a reputable 3PL service will use sophisticated inventory management software to efficiently keep track of inventory.
5. Greater Customer Satisfaction
According to a 2019 study, roughly 89% of shippers and 98% of 3PL services stated that the use of 3PLs contributed to better customer satisfaction. Shipping the correct product to the right place at the right time is pivotal to customer satisfaction. 3PL services can help your company achieve these customer expectations and give your customers a great overall experience.
Third-Party Logistics in Phoenix
A 3PL logistics service can offer your business all the enlisted benefits and more. Are you ready to partner with one to improve your company’s efficiency? Contact American Western Distribution to learn more about our services and get a free quote today.
