A 3PL is simply an outsourced logistics company that offers other businesses customizable warehouse storage, distribution, and transportation solutions. The services provided are based on the capabilities of the 3PL. Most third-party logistics providers (third-party logistics providers) provide inventory management, order fulfilment, goods shipping, and last-mile delivery services. 

There are numerous benefits to outsourcing these logistical tasks, but businesses must find the right 3PL partner to reap the most benefits. Here’s what you should know:

Cost Advantages of a 3PL Partnership

The cost advantages of a 3PL partnership could include the following:

• Inventory control software

Many small businesses and e-commerce startups lack the software needed to track inventory levels. A 3PL invests in these technologies as part of their business structure so that they can track the location of shipments and the number of products on warehouse shelves. This feature enables a company to better manage inventory levels, reduce product waste, make better use of warehouse space, and avoid backorders during peak sales periods.

• Avoid In-House Investment.

The investment in in-house logistics can have a negative impact on the organisation’s financial situation. A 3PL service provider can provide flexible packages to meet their clients’ needs. Because these packages are designed to meet specific needs, the costs incurred are reduced.

• Public storage – shared spaces

Because the warehousing spaces are shared by multiple customers, the company is only required to pay for a portion of that space. They do not have to pay for the entire space, which significantly reduces warehousing costs. Not only is the rent for the space shared, but so are other costs such as labour and equipment.

As logistics and transportation networks become more complex, outsourcing these services through 3PL can make operations far more simple and cost-effective. Partnering with a 3rd party logistics provider like Shift Logistics can help your company effectively save the resources you would spend to build its own logistics system.