A Short Introduction to 3PL

  • September 28, 2017
  • Blog

A 3PL Company is turning out to be the pivot for retailers who are trying to achieve Omni-channel and online presence. They prove to be beneficial for the fulfilling the increasing needs of the online customers. However, many people are confused as to what is a 3PL provider and what is the role played by them in the business. This article will give you answers to your questions.

What is a Third Party Logistics?

As mentioned earlier, 3PL is the short form used for third party transportation service. Other terms that are used for 3PL providers are fulfillment companies and pick and pack services. In short they, a 3PL provider take care of the supply chain process. These processes include warehouse management, reporting and forecasting, and transportation of goods. There are different kinds of 3PL providers and they cater to different kinds of requirement. Some 3PLs specialize by industry, while the other specializes in specific areas in logistics. However, whatever the area of specialization, a 3PL provider has to manage the supply chain efficiently.

The Effect of 3PL on the Retail Landscape

Now, that you have an idea about 3PL shipping, you will be able to understand the role that 3PL plays in changing the retail scenario. In 2015, the consumers have reported that the essential thing for them is free shipping. As a matter of fact, a majority of the shipping companies have listed it as their number one priority. The customers do not want to pay for the shipping and want the product to be delivered fast. There are some companies that offer free shipping demand ship products within one to two hours in some of the major cities.

In order to meet the demands of the customer, the retailers are seeking the help of the third party logistics services. They are aware of the fact that the supply chain management is actually the base of the customer satisfaction. The way in which the products are shipped and handle from different sales channels needs a proper supply chain strategy.

You need to manage and pick inventory and thereafter get it delivered to the customers at the right time. This process can become pretty complicated if you have to fulfill products from the same inventory. You also need to make sure that the return process is easier for the customers. Perfecting the procedure is difficult for a retailer that is striving for an Omni-channel experience for the customers. You should not let the unreliable shipping process prevent the customers from making the purchase.

When you have a robust supply chain is beneficial for the retailer. This enables you to compete with large-scale online businesses. Managing the supply chain all by yourself can be difficult and costly as you have to invest in the necessary technology, as well as location staff. This is the reason many retailers are turning to the 3PL provider.
There are all kinds of third party warehousing and logistics provider or pick and pack service. You need to find out the one that will be suitable for your business. Check the price and service that they are offering if it is the right 3PL provider for you.