Advantages Of Using A 3PL Company

Posted by Marian
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Expectations on delivery and quick shipping times are normal in modern consumers today. True enough, the advantages of using a 3PL company cannot be underestimated. Perhaps, e-commerce has this way of blurring time and space because now you can shop anytime and anywhere without driving from one location to another. Hence, expectations also increase and competition too.

Gone are the days where you drive to the local community stores to purchase goods with very limited options available. With the growing amount of online e-commerce retailers, you now have limitless options in your hands. There is so much power in online retail now. The momentum has just escalated, with online businesses and e-commerce spaces welcomed new normal for consumers.

Arm Your Business with a Powerful Logistics Arm

Business is changing rapidly and you must keep up to make the cut. As a business owner, you should have the logistics arm to help you keep your operations running smoothly while keeping your customers happy with your services. This era has a different breed of consumers who are used to speedy transactions, so, having a firm grasp of inventory, warehousing, order fulfillment, and shipping will ensure that your business is running like a well-oiled machine.

Luckily, third-party logistics (3PL) providers such as Zip Logistics are the answer to these supply chain needs and problems. We don’t second-guess or overthink when it comes to shipping because we know the ins and outs of the industry and can quickly identify what your business needs in order to streamline services and increase efficiency across the board.

3PL Services

Whether it’s a brick-and-mortar location or an e-commerce business, 3PL companies provide numerous services to businesses looking to expand and streamline their shipping processes. As a 3PL’s customer, businesses are able to outsource their supply chain management to a 3PL company, saving the business owner countless time and resources that could have been dedicated to alternate business growth efforts.

Product Procurement

This service refers to the process of exploring, selecting, and acquiring goods and services from a third-party vendor. This can be accomplished with a direct purchase but also may be negotiated, for the sake of ensuring that products are provided to the supplier in the right quantity and excellent condition. The process of ordering and receiving goods from manufacturers and suppliers needs to be calculated in order to ensure items are chosen with accuracy and allow seamless processing. When handling product procurement, they will typically follow the following procedures:

  • Provide your business inventory management
  • Evaluate stock levels and warn you when it’s low
  • Place orders to maintain stocks
  • Coordinate shipping of goods from supplier, to manufacturer, and finally to the 3PL fulfillment center
  • Coordinate and verify receipt of goods into the 3PL location
  • Manage inventory and warehousing until goods are ordered and shipped

Order Fulfillment

This pertains to the processing orders to ensure the availability of products and services to facilitate seamless shipping to customers. Order fulfillment processes can be time-consuming, so with Zip Logistics, you will have peace of mind when it comes to order fulfillment. Product procurement and order fulfillment are interconnected, so both will require a 3PL service’s inventory management ability. When coordinating order fulfillment, a 3PL service will:

  • Manage customer orders for goods and services
  • Handle inventory and adjust stock levels after orders have been placed
  • Choose ordered goods from the storage facility
  • Package goods in accord with best shipping practices
  • Coordinate loading and distribution processes to ensure item is shipped to the right destination

Warehouse Management

As a business owner looking to sell products and goods effectively, proper warehousing is a key element of that success. Storing products for fulfillment and having items readily available for shipment is an important element of any business’ customer satisfaction.

Especially as we continue to see an increase in e-commerce spaces, no one loves learning that their cart has changed because an item is out of stock. Having the proper warehousing accommodations for your business’ unique needs is important, and a 3PL service can make sure that not only are items properly warehoused but they are warehoused in conditions that your goods require for quality assurance. When a 3PL service offers to warehouse goods, they will typically do the following:

  • Provide warehousing to store business stocks or inventory
  • Ensure proper storage areas for different products being stored, such as food items or harmful chemicals that need to be segregated
  • Offer contract warehousing for those looking to warehouse for a specific duration of time
  • Provide security for sensitive or hazardous goods and materials
  • Manage inventory and conduct routine audits to ensure adequate stock levels and proper distribution
  • Provide in-house tracking for business owners to gain off-site identification of product inventory

Distribution

It can be very chaotic when you’re in a retail or e-commerce business. It’s not a walk in the park when you run a business in the digital space. Distribution is the last step of supply chain management which is the distribution of goods to other sections of the supply chain or to the business’ customers. This stage is where a 3PL company can truly come in handy, as shipping requirements, customs clearance, and transit fees can get pretty technical and time-consuming. Zip Logistics specializes in distribution processes, as one of the most popular options chosen by businesses wishing to take advantage of our fulfillment services. Here’s how we get it done:

  • Distribute goods to customers or other stations of the supply chain
  • Provide multiple options for distribution methods (in correlation to the shipping amount and requirements)
  • Consolidate goods
  • Track shipments of goods using tracking software
  • Optimize shipping processes

Advantages of Using a 3PL

Now that we understand what a typical 3PL service is able to provide, let’s dive into the advantages of 3PL companies and why they can increase efficiency in a business’s profits and customer service.

Industry Experts

Every business starts out differently, with unique challenges in regards to getting products to consumers. 3PL companies work with a variety of businesses and industries and have the knowledge and expertise to identify areas in which a business could improve its shipping logistics.  

Cost-Effective

 Any successful business owner understands that having access to capital is crucial for having an accurate idea of profit gains and overall growth. 3PL companies can easily identify where money can be saved and will ensure product fulfillment processes are as cost-effective as possible. This lets businesses worry less about product fulfillment and spend more time focusing on customer satisfaction.

Scalability

 Especially for small or e-commerce businesses, long-term growth is always the goal. 3PL companies are able to help businesses scale much faster by streamlining their shipping process, in turn allowing businesses to expand and further build their brand.

Boost User Experience

We’ve only scratched the surface of what a 3PL can offer, with reverse logistics also available which can take some stress off the business owner’s hands. Many 3PL companies will have customer support services available to provide additional resources for consumers to ensure they’re happy and satisfied with their goods.

Should You Use a 3PL?

When growing a business, there will always be challenges that create obstacles for success that require business owners to find solutions. Especially for businesses that are first starting to see an increase in sales, this exciting progress can also provide even more problems if inventory management and order fulfillment processes are not streamlined.

This is when operational costs climb and businesses tend to scramble to accommodate order requests, a task that a 3PL service is well equipped to accomplish. Some of the most common obstacles that businesses struggle with that can be solved by choosing a 3PL service to step up to the plate include:

  • Managing the Increase in Customer Complaints
  • Business Expansion to different locations
  • Problems with Inventory Control
  • Needing to Reduce Shipping Risks

Ship it with Zip Logistics!

There is a 3PL service that fits every business.  You are bound to find your match with us! We know every business is unique that is precisely why we always provide our clients a plethora of options that fit every brand or business needs!

Zip Logistics is a reputable freight forwarding company with extensive and well-rounded 3PL services that can optimize your shipping services and product fulfillment. For your warehouse management, inventory, virtual mailbox, and shipping needs, there is always one name that stands out as an authority in the industry – Zip Logistics.

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