What is a 3PL and how does it help E-Commerce businesses?

Are you a new e-commerce business? Maybe your business is growing, but you have no idea how you will deliver your products to your customers. Whatever your case may be, you are certainly looking for a third-party logistics provider (3PL).

 

What exactly is a 3PL?

 

Whenever you buy a product from an online store, a process called logistics takes care of getting that product from the supplier and into your hands. Without logistics, the rise of the e-commerce industry would not be possible.

 

A third-party logistics company offers support in many aspects of the supply chain: transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging and freight forwarding. However, how much a 3PL is involved in the supply chain is up to you and your needs. Taking advantage of a 3PL can enhance your operational, financial, and customer performance.

 

Why Use a 3PL?

 

Third-party logistic companies offer a variety of advantages especially for new and growing e-commerce businesses. Here’s why you should consider finding a provider:

 

Expertise

Warehousing and distribution can be a complicated aspect of your supply chain; especially trying to figure it out on your own. Plain and simple, 3PL’s are experts when it comes to supply chain logistics. Which leads to the next point.

 

Cost and Time Efficient

As an e-commerce business, you want to focus your energy on making online sales. Using a 3PL can eliminate the need to look for your own warehouse space; find the right technology to track your inventory and shipments; carry a fleet of trucks or at the very least acquire a transportation process; and hire employees. If you’re trying to grow your e-commerce business, 3PL’s reduce your risk and cost which allows you to scale your business.

 

Flexibility and Scalability

When using a 3PL, you are not stuck with a limited amount of space, labor, and transportation. As your company grows, so can the service provided by your 3PL; it is a very easy adjustment between growth periods. If you’re looking to expand into new markets, your 3PL may have a location for you! This means you don’t have to repeat the process. Your 3PL already knows your processes and can quickly and easily get your supply chain up and running in new locations.

 

Third-party logistics companies can offer expertise, save you time and money, and be flexible as you scale. Finding the right 3PL for your e-commerce business can seem daunting. At Speedy Delivery LLC, we want to make the decision easy and safe for you. Let’s get the conversation started!