In
today’s business world, good logistic and supply chain management has become an
important factor for organizations that want to excel. This is where Third
Party Logistics (3PL) providers fit the bill perfectly. 3PL management subsumes almost
every logistics solution including warehousing, inventory handling,
transportation etc. These operations are outsourced to allow business
organizations to concentrate on their core functions, with the knowledge that
the logistics of their business are in capable hands.
What is 3PL Management?
These
companies act as an extension of a business’s logistics team, offering services
such as:
Warehousing and Storage: 3PL providers oversee the
stock in the central facility, which is a crucial factor, as it is necessary to
distribute inventory across the space most effectively and provide
accessibility for products.
Order Fulfillment: They take responsibility for
order dispatch, where they pick up products ordered, pack them and ensure they
are delivered on time.
Transportation Management: 3PL companies take care of the
transport of the products, whether it be within the same region or across
borders. They may already have Carrier relationships in place, which leads to
affordable and efficient deliveries.
Inventory Management: With the help of
sophisticated technology and integrated systems, 3PLs are capable of providing
accurate data on inventory levels to help minimize the likelihood of stockouts
or excess inventory.
Key Advantages of Outsourcing to 3PL
Providers
Cost
Efficiency: Third Party
Logistics providers can deliver their logistics services
at a cheaper price than if it was done in-house, due to factors such as
economies of scale. Organizations cut costs such as those that are incurred on
warehousing, staffing and transportation among others.
Scalability:
These include peak demand seasons, an extension of the business into new
markets, where 3PL suppliers provide the extra associated with scaling up and
downsizing.
Expertise
and Technology: 3PL companies use advanced technology and hire professionals in
logistics to optimize the supply chain. They know the current trends in
industries as well as the laws regulating them; smoothening operations for any
company experiencing complications.
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