Order fulfilment is an integral part of any eCommerce business to keep their business running. However, as your business grows with increasing orders, it’s not always feasible (nor cost effective) to handle the surge of orders in house. A third-party logistics (3PL) provider exists to handle the logistics of orders on your behalf. This includes inventory management, warehousing, and of course fulfilment.
Here are some of the reasons why partnering with the right logistics company can help optimise your supply chain and offer a better experience for your end customers.
Reduced costs
One of the key advantages of using a third party logistics provider is the potential for savings on shipping costs. It eliminates the need to buy or rent your own warehouse space, logistics operations, staff labour, and the technology required for larger-scale in-house fulfilment operations.
Speed of delivery
By integrating your shop system with the software of your chosen 3PL company, all orders made on your online store will automatically be sent to the warehouse, this speeds up the picking and packing of the order. This in turn will help improve customer satisfaction because there is likely to be less delay in getting the order processed straight from the warehouse to the customer.
Inventory management
Many ecommerce companies don’t warrant having their own warehouse facilities. By partnering with a 3PL company their inventory can be more effectively managed offsite. They will help to control and manage your inventory so that you know exactly how many products you currently have in your supply chain, as well as any that are being sent back from customers as returns. Effective inventory management will help you stay on top of demand forecasting so you can order the right amount of stock accordingly.
Global shipping
Working with a 3PL company who has a strong presence globally will help increase both visibility and agility through your supply chain. They provide global transportation, forwarding and customs brokerage, as well as deal with international laws and regulations and currency issues as part of their service which can help prevent any costly delays of your shipment.
Increasing demand in the ecommerce sector, along with increasing customer expectations for fast and cost effective deliveries, there is a current shortage of everything from truck drivers to warehouse space. Working with a reliable 3PL company will ease this burden and eliminate costly delays, allowing you to focus on other areas of your retail business.
If you are looking to partner with a 3PL company, contact us today to discuss your requirements.