Freight analysis, product analysis, distribution transit times and customer analysis, Kitting, sourcing, and storage. These are the things NextGen does for you. Pick to pack and ship is expected, our accuracy is demanded.
3PL’s or Third-Party Logistics is a term used in eCommerce to refer to outsourcing your business’s eCommerce logistic needs to a third-party logistics company. This includes all aspects of shipping operations. In most cases, this is also integrated with inventory management and warehousing logistic software as well. This can be essential in businesses as it creates an opportunity for business owners to focus on other parts of their businesses, leaving the fulfillment end to a 3PL provider.
3PL is a great option for your business as it is customizable. It can provide a single service in a single department or various services in your supply chain across multiple platforms. 3PL is adaptable to fit your business’s specific needs. It provides visibility to all aspects of your supply chain while advancing financial, operational, and customer performance.
Throughout your research, you may come across 4PL. 4PL essentially adds another layer of separation between businesses and their 3PL shipping providers. If a business decides to also use 4PL, then 4PL manages and arranges the 3PL services for a client. This is known as “double brokering”. 4PL is involved with all aspects of the supply chain process and acts as a single point of contact for every party involved. 3PL tends to focus on more discrete functions of supply chain operations.
What Are The Benefits Of Using 3PL?
3PL providers typically have stronger relations with freight companies than individual businesses or shippers do. They can negotiate better pricing for shipping costs based on volume and order frequency. 3PL will also eliminate the need for your business to buy a warehouse or store inventory, or invest in labor and logistic operation costs. This frees up some money to invest back into your business to help grow in other areas.
Partnering with a 3PL can save your business a lot of time. Packaging items and preparing them for shipping can be very time-consuming. This process can include packing boxes, standing at the post office, and even transporting these packages. Partnering with 3PL gives you time to focus on other aspects of your business while they take over managing the shipping process.
Most 3PL providers have same day or next day shipping in the modern eCommerce world. Customers will be satisfied as their packages will be delivered in a short amount of time. This will generate returning customers in the long run, therefore actively growing your business.
Shipping delays do happen. In that case, your 3PL provider would be in charge of managing new shipping arrangements to fulfill that order. Your business will be protected in the event of possible lost or damaged merchandise.
3PL is staffed by logistic and eCommerce professionals. Working with a 3PL provider will instantly give your business a step up in the eCommerce world. You will have the knowledge and current people on your side to talk to whenever necessary. They will be up to date with everything current of industry trends. This includes the technology to help your company run smoother, such as marketing agencies and custom packaging providers. Having experts focus on the shipping logistics of your company can be a big stress reliever and allow you to focus on growing other aspects of your business.
3PL allows for more flexibility in scale operations. This is because 3PL uses software that is able to interpret your scale space, labor, and transportation based on your current inventory. They are also able to soften the transition between seasonal periods and typical industry fluctuation. As you try to grow your business, you need to expand to new markets, sometimes globally. 3PL has the technology that allows for these adjustments within all aspects of your supply chain. The software can manage and analyze how your supply chain works to eliminate inefficiencies. Partnering with 3PL allows for continuous improvements to your company.
Outsourcing the fulfillment aspects of your business such as shipping, warehousing, inventory management, and transportation can be an essential step for the continuous growth of your business. Having a 3PL provider take over fulfillment processes can help your business save money and time that can be put back into the business. If you are a larger company with a higher order volume, 3PL is essential for creating reliable and fast shipping to keep your customers satisfied and purchasing from you again. As 3PL is essentially an extension to your company, they will treat your business like their own and will be efficient and reliable for both you and your customers.