3PL (Third-party logistics): Benefits for your business
3PL, or the so-called contract warehouse logistics, represents the outsourcing of logistics activities - implementation by an external company as a supplier of partial or complete logistics processes such as supply network management, warehouse activities, or organization of deliveries to customers (fulfillment).
Inventory management and operations issues become relevant for any company in active development.
Then the decision to independently manage logistics processes or partially/fully transfer them to an external supplier becomes vital to the stable growth of your business.
3PL service providers offer expert execution of operations such as load-unloading operations, freight forwarding, customs clearance, storage of goods, inventory management, shipment preparation, commissioning, packaging, supply, and network management for v. Additional services such as customer service for the expeditions bring added value to the service.
The benefits for your business in using a 3PL provider are:
Cost reduction: Using all types of logistics operations and comprehensive warehouse service is done without the need for you to make long-term investments in mechanization or team development. Your logistics provider can also optimize your current transport costs, as it manages significantly more supply networks and thus realizes economies of scale.
Flexibility: You can determine the period of cooperation with your logistics partner according to your needs, eliminating the need for a long-term commitment. It is possible to choose a temporary storage option for seasonal changes in sales.
Effectiveness: Focus your team's development on what you do best. You prioritize the development of sales expertise. As a result, you increase revenue, using your team's time effectively to implement strictly specific but low-profit processes in logistics.
Risk reduction: In case of a change of plan or an emergency, your logistics partner can always react with an alternative approach and solution in connection with the wide range of experience.
You pay for what you use: You save on purchasing warehouse equipment, but the ongoing costs of implementing a logistics activity are also high. Your logistics provider bears the risk of managing fixed costs (for salaries of warehouse employees, rent of warehouse space, and investment in equipment, for insurance, permits, and licenses).