The e-commerce economy is growing at a fast pace. This has been fueled by the high number of people who now prefer to shop online. As an online store owner, you need to woo more customers and beat the competition.
Here is where partnering with 3PL companies comes into play. Instead of handling logistics in house, you can collaborate with a 3PL logistics company for supply chain services and operations.
Below, we look at what you need to know if you plan to partner with a 3PL logistics company.
What 3PL Logistics Providers Do
Most people think that 3PL companies only work on delivering orders. However, modern 3PL logistics providers do more. Here’s a quick breakdown of the services they offer.
§ Warehousing and Distribution
3PL companies own and manage warehouses, storage units, and e-commerce fulfillment centers. They handle everything right from when your products arrive at the warehouse to when they are dispatched to customers. Their fulfillment centers are in strategic locations, cutting delivery times and costs.
§ Inventory Management
The best 3PL companies have invested in proper inventory management software to ensure stock tracking in real time. This minimizes human errors and the chance of overstocking or running out of stock.
§ Order Fulfillment
3PL logistics companies collaborate with various courier services to deliver orders to your customers. Some 3PLs also handle returns and customer complaints on your behalf, which is a massive plus.
When Companies Should Adopt 3PL Logistics
This is a question that often pops up, especially in fast-growing startups. Getting the timing correct is of great importance. The last thing you want is to leave it too late until orders start piling up and you don’t have any means to deliver or store your inventory.
Here are well-documented indicators that the time is right to adopt 3PL logistics.
§ High Order Volumes
Once your in-house logistics company starts struggling with orders, it is time to collaborate with a 3PL company like Packageman. The good news is that established 3PL partners can handle high orders without any issues. Also, you can scale down if the order volume drops after a few weeks.
§ Limited Storage
Your orders are rising, so you need a bigger warehouse or storage unit. But wait; your garage or spare bedroom isn’t enough. Plus, the cost of leasing extra storage space is also on the rise. 3PL logistics companies offer flexible storage that adjusts to your stock level without long-term fixed costs.
§ You Need Faster Delivery
Delivery times can be the difference between customers checking out their orders or leaving carts unattended. If your current logistics workaround cannot deliver same-day shipping, it is time to consider collaborating with a 3PL logistics company.
§ Expansion into New Markets
Business growth is always good news. However, it also comes with its fair share of challenges, especially when crossing international borders. Most 3PL logistics firms are well versed in international shipping laws and regulations.
A 3PL with a broad network and local and international expertise can support scalability more smoothly than building a logistics network from scratch.
Summing up
Partnering with a 3PL company can help you scale and unlock your online store. Moreover, you get more time to work on business development instead of worrying about deliveries and handling returns.
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