6 Reasons To Hire A 3PL
If you are a manufacturer, e-commerce entrepreneur, dropshipper, or Amazon FBA seller, then a 3PL partner can unburden all your logistics and fulfilment worries. A third-party logistics (3PL) provider like ABC offers a broad range of such services for these businesses. Here, we will cover six main reasons to hire a 3PL.
1. Efficient Supply chain
The 3PLs have a solid inbound, outbound, and reverse logistics network to streamline the supply chain.
In the case of manufacturing companies, a 3PL covers supply chain operations from bringing in the raw material to storing the finished product in the 3PL warehouse. A 3PL can even go further to deliver the product to the end customer.
For E-commerce and retail entrepreneurs, 3PL services start with carrying their products to the 3PL warehouse. Then pack and deliver the products, as and when required, to the end customer through their network, and their role ends with returns management.
2. Complete Inventory management
If the company handles inventory management, storage, and handling, it demands a huge infrastructure expenditure. Further, routine fixed expenses for store administration, maintenance, packing, and shipping arrangements will be there.
A 3PL can take away all these headaches with its expertise and advanced warehouse management solutions, and you can focus on the actual business. 3PL will keep your inventory safe with their latest technological and professional expertise. Further, the 3PL provides online inventory tracking and stock updation facilities, so you always have control of the situation. Just hand over the inventory to them and be carefree.
3. Automated Order fulfilment
In the case of E-commerce & dropshipping companies, when an order comes on their website, it is forwarded to the 3PL facility automatically. This triggers the order fulfilment process at their warehouse.
The pickers gather goods from the warehouse per the packing list and pack them into appropriate boxes or bags. Then, the item is labelled and shipped with relevant documentation to the end customer.
Similar is the case of stock fulfilment at the retail outlets. Whenever the stock quantities fall below the minimum levels decided by the company, the software immediately sends a requisition for replenishment.
4. Returns management
3PL takes responsibility for the goods returns management also. Returns management is one of the most important aspects of any business. A clear return policy develops confidence in the customers to buy from your company or e-store.
However, the returns or exchange process is very time-consuming and demanding, as you have to deal with an angry customer with an eye on the company’s margins. Here also, 3PL comes to your rescue and keeps you free of all such tasks.
Their highly trained customer care team will deal with the customer. In the case of return or exchange, 3PL staff will inspect the returned merchandise, process the refunds, or ship out a new item as required. Then the returned items are given the final treatment, maybe restocking, discarding, sending back to the manufacturer, or recycling.
5. Time and cost-saving
3PLs manage the logistics and warehouse operations in bulk in routine and have vast infrastructure and expertise in this particular field. A 3PL being connected with many shipping, logistics, and related companies, can get such bulk deals and discounts which e-commerce companies can never expect to get.
Similarly, 3PL saves a lot of time by picking, packing, and shipping the orders. Otherwise, the company would always remain busy with sorting and packing activities.
Further, when e-commerce companies deal with reverse logistics on their own, sometimes, because of high shipping charges compared to the value of the goods, companies even have to leave the product with the customer. On the other hand, a 3PL easily handles such situations because of their regular routes and tie-ups. So, good reverse logistics can even reduce costs.
6. Scalability
When entrepreneurs handle the inventory or logistics, then, while planning the scaling-up of operations, the fingers are always crossed. The reason is the high investments needed in the infrastructure and related maintenance costs to run the business at that level. The possibility of sunk cost in case of failure always haunts them.
On the other hand, while dealing with 3PLS, the company can quickly scale up or scale down the business as per the company’s temporary, seasonal or market demands. With a 3PL as a partner, e-commerce operators need not think about these aspects.
Conclusion
So, if you are a manufacturer, e-commerce entrepreneur, dropshipper, or Amazon FBA seller, then you have all valid reasons to go ahead with a 3PL partner like ABC. Their efficient warehousing management and product delivery, lower costs, and high customer satisfaction lead to a successful business in the long run.