If you're not familiar with the term, 3PL stands for third-party logistics. A 3PL is a logistics company that handles your orders and has a vast network of carriers to meet your transportation needs. They can handle current and future volume spikes, drive cost savings, and handle all your business at full speed. The right 3PL and fulfillment partner can help your business flourish.

3PL Stands for Third-Party Logistics

A 3PL is a third-party logistics service provider that will take care of your order fulfillment needs. Whether you need a single pallet delivered to a retail store or a full truckload, a 3PL can handle it all. A good 3PL will have extensive connections in the industry and should be able to fill specific needs at a reasonable cost.

Value-added warehousing and distribution services are key considerations when choosing a 3PL. Such services include private branding, parts inspection, breakdown and consolidation, sorting, and complex assembly capabilities. A 3PL provider like Worldwide Logistics Group can offer all or a combination of these services, and can also customize their services if needed.

1. It is a Type of Logistics Company

A 3PL is a type of logistics company that specializes in shipping and distribution. These companies offer a range of services to businesses, ranging from single-product manufacturers to ecommerce stores to large retailers. The services they provide are customized to meet the needs of their clients.

Pricing depends on the services required, including warehouse storage, packaging materials, and shipping. Some companies offer discounts to high-volume clients, while other 3PLs specialize in specific types of products.

In addition to fulfillment, 3PLs provide inventory management services. They also handle end-to-end processes for order fulfillment, giving the client visibility into all processes. This gives the client a better perspective and allows them to concentrate on their core business.

Small businesses often face seasonal spikes in demand and unmanageable order volumes. The services of a 3PL help these businesses grow without incurring the additional costs associated with expanding their own warehouse and staffing infrastructure.

2. It Handles Order Fulfillment

Order fulfillment is the process of filling customer orders from an inventory, and companies like Shape can help fulfil your orders efficiently. The process involves receiving orders from customers, organizing inventory, picking and packing items, and eventually shipping in a timely manner creating a streamlined delivery experience.
 
Inventory management software makes it easy to track inventory levels. It also eliminates the need for manual tracking. However, inventory management does not handle other aspects of order fulfillment, such as packing and shipping orders. Those parts of order fulfillment are best handled by a 3PL.
 
While 3PLs have been around for a long time, the growth of ecommerce has made them more relevant than ever before. As a business owner, you may have dreamt of having your own fulfillment center, logistics equipment, a fleet of trucks, and staff. But, a 3PL can provide these services for you at a fraction of the cost.

3. It Has a Large Network of Carriers

A 3PLtypically has a network of carriers that can provide you with a variety of shipping services. The cost of shipping depends on the size and weight of your shipment, the shipping zone, and other factors.

Gofreighthub.io, for example, has an extensive network of carriers for a wide variety of products. We have experience fulfilling orders from a wide variety of channels as well. The best way to find out if Gofreighthub.io is a good fit for you is to request a quick quote to see if we can fulfill your shipping needs.

Third-party logistics providers can help you expand your business through access to new markets. If you have a limited number of employees or resources, it can be difficult to scale your inventory and manage delivery to meet demand. Having a 3PL on your side can help you tap into new markets and reach new customers with minimal investment.

4. It Can Handle both B2C and B2B Fulfillment

While B2C fulfillment is relatively easy, B2B fulfillment is much more complex, with large shipments, tight deadlines, and more expensive shipping. It's important to develop a logistics plan that takes into account these different requirements to determine the best solution for your business. A 3PL that offers both B2C and B2B fulfillment should be flexible enough to handle both, though it may cost you more for the larger jobs.

Retailers have strict requirements for their fulfillment partners, from labeling to coding and invoicing. For this reason, a 3PL fulfillment warehouse must implement systems and processes to meet these requirements. For instance, the fulfillment warehouse should be able to handle EDI, which is the electronic transmission of business documents. This technology is increasingly used by large retailers to receive shipment documentation.

5. It Can Scale With Your Business

The right 3PL partner can help your business flourish. This type of service can save your company both time and money by facilitating logistics on your behalf. It can also enhance your business' productivity. These benefits can range from improved time management and cost efficiency to the development of new revenue streams and operations. They are also not limited to only small businesses but are equally advantageous for large corporations and ecommerce businesses.

Conclusion

A 3PL can provide you with flexible storage capacity, which allows you to accommodate multiple customers and even out seasonal demand within the same facility. This can protect your business from changes in warehousing requirements.

A 3PL can also review operational processes to uncover inefficiencies in your warehouse management and highlight areas for improvement. In addition, 3PLs integrate analytics into their IT infrastructure to provide you with accurate and timely reports.

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