3PL pick and pack to benefit retailers

  • August 20, 2021
  • Blog

Benefits of 3PL for Your Supply Chain

3PL, or third-party logistics, refers to a company outsourcing part or all of its logistics requirements to a provider. 3PL providers handle all or several components of your supply chain, like warehousing, distribution, inbound freight, and outbound freight. Outsourcing these functions to a 3PL provider has many cost-savings and efficiency benefits.

Those benefits are especially prevalent when you work with a company like 20Cube that oversees and manages the entire logistics and supply chain for you. 20Cube offers pick-and-pack 3PL services in Malaysia and Hong Kong, providing retailers with a cost-effective and streamlined solution for complex supply chain processes. Why might your company benefit from a 3PL provider? Let’s break it down.

Improved Supply Chain Efficiency

3PL companies specialise in logistics, whereas keeping logistics housed internally means you have a limited team without specialisation. 20Cube, for example, uses digital freight forwarding technology to provide insights into inventory management and distribution tracking.

Having access to a specialised logistics team and advanced resources streamlines your supply chain processes and boosts your on-time delivery record. With a 3PL provider, you don’t have to dedicate employees to managing your warehouse, distribution, or freight forwarding.

Cost Savings

Just like having a specialised freight forwarder streamlines your distribution, having a specialised logistics company saves you money too. With a third-party logistics manager, you have access to a bigger pool of resources for a fraction of the cost of purchasing all of the equipment and technology yourself. For example, you don’t have to rent an entire warehouse but rather pay your 3PL provider a small amount for shared space in theirs.

Furthermore, 3PL providers can leverage their networks of freight forwarders to put your inventory on the most efficient transportation method and trade lane. Freight consolidation and backhauling save you a lot of money on logistics, but an in-house logistics team only has access to its own trade lanes and transportation.

Market and Seasonal Support

Even if your company doesn’t require a 3PL provider permanently, it can still benefit from additional logistics support at certain events and milestones. For instance, a 3PL provider can help your company break into a new geographical market, like how 20Cube offers freight forwarding in Australia, Malaysia, China, Germany, and Italy. Additionally, your company can leverage a 3PL provider during seasonal peaks in demand. You can easily scale up your operations for a period without investing in permanent infrastructure.

Finding the Best 3PL Provider For You

A 3PL provider offers increased efficiencies, cost savings, and supply chain management support. If your company is considering outsourcing your logistics, figure out the amounts of time, money, and infrastructure you will need to support your supply chain in-house, and compare that to a quote from a 3PL provider. Chances are, your logistics will benefit from outsourcing all around.

Don’t try to manage your entire supply chain alone! Leverage a 3PL provider’s extensive network, resources, and technology to streamline your operations.
To learn more about boosting your supply chain efficiencies, set up a consultation with 20Cube.