The providers can give retailers access to services that include inventory management, shipping and order fulfillment. With the help of 3PL support, the retailers can focus on sales and growth while at the same time enjoy cost savings and improved customer satisfaction.
The Growing Importance of 3PL Retailers
A third-party logistics provider is an option for businesses that need to outsource the fulfillment and shipping needs. More retailers use 3PL because of how competitive the market is for consumer goods. In the retail industry customer satisfaction is king. The right shopping experience makes a huge difference in retention strategies and customer gain.
Quality 3PL can help provide services that make your business not only fast, efficient, customer oriented but also easy to expand. The demands for retail mean that the supply chain management and logistics must be run by experts. This frees up the executive teams and management that helps focus on growing the business and finding new markets.
What is a 3PL Company?
It is a third-party logistics company that fulfills online orders for you. As an online vendor you can take the orders and use a 3PL company so that you can leave the rest up to others. With the help of the third-party logistics company, you can handle warehousing, distribution, fulfillment and other aspects of online sales.
When you use a 3PL company, online sellers focus on the selling part and leave the rest to other individuals.
What is the Difference Between 3PL and 4PL Companies?
And since you know what a 3PL company is, you must be wondering what a 4PL company is. The 4PL company not only handles resources, infrastructure but also technology. They can even manage external 3PLs and help the companies achieve the goals for the greater good of the ecommerce merchant.
Elements of Logistics for 3PL Providers
The elements of logistics are wide and varied. You can manage the inventory and make sure that the products get to your customers quickly and efficiently. It is also important to know that the 3rd party logistics companies are alike.
Here are the main elements of logistics:
· Regular storage
· Supply chain management
· Warehousing
· Transportation
· Distribution
· Customer Service
· Material handling
· Reverse logistics
There are a lot of moving parts that help run a successful online business. Another reason to use a third-party logistics management company is to provide you with access to distribution areas. There could be various reasons because of your current location, your inability to get the products to certain countries or using the timeliness of the transactions.
Is Amazon a 3PL Company?
Although Amazon does not label as a third-party logistics company, it has many features that the 3PL companies have to offer. When a marketplace seller uses the Fulfillment by Amazon (FBA) services, they will receive packing, distribution and warehousing of the items along with customer service assistance.
Although Amazon isn’t labeled as a 3PL company, there are many traits that are similar to third party logistics providers.
3PL Company Options by Region
In order to find the best 3PL company for your needs, it is important to know where they operate out of as well as where they will offer these services. When you choose a 3PL company based on the region, you know that the business you select will help you accommodate the logistics needs and get your products to the territory they need to go to.
These are the 3PL solutions for retailers. Once you find a provider that you like the best, you will work wonders for your company. Make sure you thoroughly research the chosen company by hiring them as your third-party logistics provider that can help ensure the best option for your ecommerce business.
