Everything You Must Know About 3PL

  • January 4, 2018
  • Blog

Third-party logistics, or 3PL as it is known in short, is a vast field. There is a lot to know and understand. Getting a 3PL provider can be quite beneficial. However, there are a few things you need to know about it first.

What is 3PL?

3PL is a service which can be utilized by companies for outsourcing part or all of their logistics requirements. Depending on the capabilities of the 3PL provider, they can handle the various components involved in supply chain logistics. For example, some may choose to handle the warehousing and distribution aspect while others may focus on inbound freight or outbound freight.

However, there are also companies like 20Cube that oversee and manage the entire logistics of the supply chain on behalf of the client. These are full-service 3PL companies and they can handle functions like supply chain management, warehousing, freight consolidation, and order fulfillment.

Why Work With a 3PL Provider?

There are many reasons as to why you should be working with 3PL companies in India. Here are some of those reasons.

Seasonal Support
: Companies that experience seasonal peaks in demand are certain to require additional resources to support their logistics capabilities. A more cost-effective solution would be to hire a 3PL provider. They can provide the necessary labor, warehousing and distribution capabilities to supplement your logistics. You can scale their support up and down to meet the seasonal requirements.

New Markets
: If your company has recently entered a new geographic area, it can take time to build up your logistics capabilities there. In the meantime, you can hire a 3PL company to provide the necessary support in the meantime.

Improved Efficiencies
: 3PL companies need the best technologies and will have developed streamlined processes to deliver top-grade services to their clients. As a result, you can benefit from the greater degree of efficiency that these companies bring to your supply chain. You can increase on-time performance as well.

The Reduced Costs
: Interestingly, working with 3PL companies give you the opportunity to reduce the costs of transportation and other aspects of the supply chain. 3PL companies can leverage their networks to consolidate the freight and access backhaul opportunities, thereby offsetting costs. The lower prices will be passed on to you.

The Advantages of 3PL

Some of the benefits of working with 3PL providers in logistics like 20Cube are discussed as follows.

  • They offer you the ability to be flexible and scalable with your logistics operations.
  • You have the ability to access a greater pool of resources to support your logistics.
  • They improve your supply chain logistics, which results in an improvement in your customer service.
  • 3PL solutions can save you a great deal of time and money.
  • Letting 3PL providers oversee and manage your logistics.

20Cube Logistics is an end to end logistics service provider having experience in providing superior services globally.

Choosing a 3PL Provider

In order to choose a 3PL provider, you need to first understand your own requirements. Analyze your own performance and how much you are spending on your supply chain. Then, check for 3PL companies that can improve the performance and fulfill the requirements at a reduced cost.