3PL – what does it mean?

No, it is not a brand! It is an abbreviation for third party logistics (3PL), which is a service that allows one to outsource active logistics right from warehousing to delivery, thus enabling them to focus better on their business. They do plenty of stuff including warehousing, order fulfillment, transportation, inventory forecasting, picking and packing, packaging & freight forwarding.

Benefits
As a blossoming business, marketing, sales and product development is all that you need to worry about with third-party logistics service around. Here are some benefits -

• Get instant expertise in the field

If you’re a new kid on the block, nobody can take better care of you than a 3PL, who are absolute professionals in this field. It is extremely challenging to manage warehousing, shipping and customer fulfillment, all at the same time and what better choice than have an expert deal with it.

• Better idea about international logistics

When it comes to international selling, 3PLs do the entire process from documentation to delivery, thus saving you a lot of headache trying to understand complicated rules of each and every country. In short they are the right person to solve all complex issue and ensure a smooth delivery within time frame.

• Generate cost savings

Warehousing needs you to have your own staff and space and you don’t have to bother about all this if you have a 3PL take care of this. In addition, there are companies that offer great inventory forecasting, helping you improve your inventory levels in order to save more money.

Choosing the ideal 3PL
It can be quite an overwhelming process to choose a final provider. You therefore need to make sure you’re wise in assessing the company you choose to invite dealing with your business. And they better be good! Here are a few tips -

• Current vs. forecaster volumes

Make sure the 3PL you choose can handle a bulk amount in case you add it in the last moment in addition to your current volume. You want a trustworthy logistics provider that can handle your business faithfully in both your rosy and thorny situations.

• Well-suited technology

Make sure your systems match and are compatible. You need to choose one that has similar cutting-edge technology so that both your systems are easily integrated. In other words, you both need to be on the same page in terms of the technology.