What is 3PL?

What is 3PL?

Third-party logistics, TPL, or 3PL is a significant part of effectively running a smooth, successful supply chain. A reliable 3PL provider makes it simple for e-commerce businesses to outsource some, or all, of their warehousing, logistics, and inventory. They can even provide consolidation services, otherwise known as freight consolidation, which is sending many smaller packages as one larger one.

Depending on your needs and goals, these professionals can partly or wholly take care of any of your fulfillment needs so you can get back to running your business. Fully confident that your daily operations are being handled professionally.

E-commerce Logistics

There are as of 2021 an estimated 24 million e-commerce businesses worldwide. And more are being created every day. There are many examples of e-commerce businesses that have grown impressive sales volumes in a short time. Thanks to the advancements of technology It has never been this easy to start and grow your own sales channel. Many small businesses can manage their own operations in-house at first. But as orders increases, so does the complexity. It more than likely warrants the need for a third-party logistics (3PL) provider. That can unburden the logistical operations to sustain operations and maintain growth.

If you are currently owning an e-commerce business. Or if you are looking into e-commerce logistics outsourcing then please continue reading. Below is a comprehensive overview of 3PL, and why going this route just might be the ideal business integration for you. This article will explain why and when a 3PL solution can reduce stress and streamline your online business.

E-commerce Fulfillment

E-commerce fulfillment is the part of your operation that delivers your products to your customers. Though it sounds straightforward, it can include several steps:

+ Preparation of the products

+ Picking and packing of orders

+ Warehousing optimization

+ Rute calculation 

+ Shipping durations and delivery methods

+ Return processing

The competition in any e-commerce business is fierce. customers have increasing demands on the availability and timeliness of their order. Even if you are selling the best product on the market you can still fail. If your fulfillment is not on point, the chances of your staying stagnant or failing increase. If one or more of the above are poorly managed (say because you are spread too thin on your own), then it can throw off your entire fulfillment system, resulting in fewer repeat purchases, negative customer reviews, and a reduction in sales.

Luckily, 3PL providers are trained in this business sector and generally have adequate tools to enhance profit and customer satisfaction. By outsourcing your logistics, you can take this entire process off your plate. Making your core business more competitive because you can focus more resources on marketing and sale.

Key Benefits of Utilizing 3PL

The most prominent benefit of a 3PL solution is that you do not have to worry about logistics yourself anymore. Your organization will finally be able to dedicate time and resources to core business areas affecting your bottom line. The most important benefits are:

–  Focus on business agenda

–  Cost Savings

– Access to Expertise and Experience

– A trusted partner and advisor

– Leverage Scalability 

– Increased Flexibility

– Enable growth and market expansion

– Reduced time and cost on returns

– Improved customer care

– Optimize order routing

– Overview and control of global operations

These can all give your e-commerce the best shot at reaching its full potential. However, there are two key results of Third-Party Logistics to consider. We will deep dive further into them below.

Flexible pricing solutions

Your products need somewhere to be stored. In comparison to renting a warehouse space that usually entails a lengthy, fixed commitment with a 3PL. Your business might find itself in a position where there may not be any long-term leasing available. Many 3PL providers offer flexible solutions and pricing. With an outsourced solution, you can grow in domestic and international markets. And they will be able to adapt to your long-term needs and adjust the cost accordingly.

As your e-commerce businesses grow, there will inevitably be a breaking point. Where you cannot do everything yourself and you need to hire more administrative staff. This requires taking on fixed costs even when demand is low.  With an outsourced logistics company, you have a more flexible workforce and will eliminate the need to hire staff as you scale up. 

By turning to a 3PL, they will be the ones responsible for scoping out and providing the right workforce to keep your business running efficiently.

You will save money! Sure, you will have to hire a 3PL company, but this initial investment will more than likely result in a net gain as you continue to scale. For example; 1) You don’t have to recruit and hire a logistics team. 2) You don’t have to invest in warehouse commitments. 3) No training and up-skill of staff. 4) You don’t have to oversee packaging and shipping materials. These are all tasks that add up over time and can get even more time-consuming and costly as you grow. 

Constant innovation

With a 3PL partner, there will always be evolving. Continuous optimizations being done on their end to make your e-commerce the best it can be. 3PL professionals are dedicated to getting their brands’ supply chain the best t can be. Adding new technologies, restructuring, and integrating with sophisticated software.  You can have peace of mind that there is an ongoing process of constant improvements. Striving to maximize profits, reduce waste, and improve customer experience.

Conclusion – E-commerce Logistics Outsourcing with Prime Penguin

There are several advantages of outsourcing e-commerce logistics over in-house operations. But one of the most complicated aspects that all online entrepreneurs face is when to leap. 

Overall, logistics challenges increase with order volumes, which is why hiring a third-party logistics provider is a compelling offer.  There is a cost to it, but thinking ahead has its advantages. Implementing scalable and cost-efficient logistic operations can be wise regardless of the size of your e-commerce. Always have your growth plan in mind.

Time to act

With that being said, if you are ready to discover the perfect 3PL partner to optimize your business, then it’s time you get started with Prime Penguin. This is a powerful, centralized platform that will connect you with trusted, local 3PL fulfillment providers all over the world. These professionals will run your logistics processes no matter where you are in the world. You will be able to integrate all of our warehouses and e-commerce systems into one platform. no only offering cost-efficient warehouse management but also a powerful interface to run operations from. 

In summary, there is a helping hand. You don’t have to manage your logistics all on your own. There are trusted 3PL providers out there who can support your e-commerce fulfillment, allow you full control, and allow you to focus on your business. And the best part is that it is free to get started.
Request a free quote today from Prime Penguin to get started.

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