Modern 3PL for E-commerce
As modern consumers stray further away from traditional retail stores and move towards online stores to shop, a new factor in fulfilling the demands of the customers has surfaced – Logistics Management. When an article is ordered online, it entails many processes such as warehousing, inventory, packaging, shipping, tracking, etc. All of these have a role in the logistics process for an e-shop that is supplying the article, from start to finish. Today’s trend for most e-shops is to outsource these activities to third-party logistics partners, also known as 3PLs or TPLs.
About 40 years ago, various aspects that we now see in a broad category of things such as transportation, warehousing, international shipping, and technology were separate. However, as digitization increased in different spheres, logistics companies providing a combination of services began to come into force. However, as e-commerce businesses began to emerge, logistics management became more complex. With e-commerce businesses starting to operate internationally, the demands for logistics and the complexity of the process increased.
Third-party logistics companies, 3PL, have been in existence for a while, managing the logistics of their e-shops partners. With the growth of e-shop businesses globally, companies offering 3PL services are also growing. As per the Logistics Study of 2016: The State of Logistics Outsourcing; 85% of e-commerce businesses feel that outsourcing and using 3PL services have drastically reduced their logistics expenses.
Challanges of modern 3PL
Modern 3PLs face numerous challenges to make a place for themselves in the logistics market.
First of all, 3PL companies need to offer both logistics as well as reverse logistics services. The implication of reverse logistics is managing the order when the order is returned by the buyer.
Modern 3PLs also need to meet the growing demands of the customers, whereas modern customers desire time-efficient options when placing their orders. They look for fast deliveries and 3PL companies, therefore, need to ensure timely deliveries in a cost-effective manner.
Technology is advancing at breakneck speed. It is imperative that 3PLs adapt to these technological changes and updates continuously. Modern 3PL for e-commerce businesses can use technologies such as network optimization, product customization, fulfillment automation, etc.
The 3PL companies for e-commerce businesses are in a highly competitive market. It is vital for them to assure reliable and secure services in order to stay ahead of their competition. In this competitive market, it also becomes imperative for 3PL companies to become aware of the new developments in their field and adopt them.
Simplify your logistics with Prime Penguin!
Prime Penguin is a Stockholm based tech venture that connects your e-commerce business to 3PL partners all over the world. We offer you a solution to your logistics management in order to ensure seamless supply chain management. We are present on most e-commerce platforms, therefore the integration with your e-shop is simple to get started.
We have selected a number of 3PL partners at different locations globally. You can select a satellite warehouse that is located close to your customers, where your inventory will be managed in an efficient manner in the warehouse. With the help of our platform, you will be able to exercise complete control over the activities of the warehouse and you will get an overview of everything that happens within the warehouse. The proximity of the warehouses ensures that your parcels will be packed and shipped in a timely manner to the customer’s destination.
We’ve also made sure that our interface can be integrated into your favorite device, making it easy to access the Prime Penguin platform.