Third-party logistics, sometimes known as 3PL, are one or more supply chain services that businesses can outsource. A 3PL company will offer expertise, facilities, personnel, materials and equipment to help with one or more solutions, including warehousing, transportation, packaging and fulfillment.
In just that brief explanation, you may have spotted some of the better-known advantages of using a 3PL, including:
- Optimize your supply chain
- Get instant expertise
- Have options for warehousing and transportation services
- Work on getting orders, not fulfilling and distributing them
Add them up, and you get one of the biggest benefits of outsourcing to a 3PL: lower costs.
Still, while that’s a healthy list of bottom-line boosting benefits, it doesn’t really cover everything a reliable 3PL partner can do for your company.
More Benefits of 3PL Logistics
Yes, the added values of outsourcing your logistics that we list below are based on the benefits listed above. But, if you don’t consider the downstream advantages, you can’t really do a proper benefit analysis to help make your decision.
Still another point to consider is the heightened importance of all the benefits listed here in light of the lingering disruptions due to the pandemic.
Increase Customer Retention Rates
Whether your business is B2B, B2C, bricks and mortar or e-commerce, they all have one thing in common. Your customers are very concerned right now about price increases, product availability or both. Even long-established loyalties will buckle in favour of consistent supply and stable pricing. Both of these are easier to offer if you have a 3PL partner.
Expand Your Markets
If recent disruptions have affected your sales, why not offer your products to a wider, even global, market? Just ask your 3PL partner to help make it happen.
Optimize Reverse Logistics
If we made it sound a little simple to expand your markets, it’s because we knew this advantage was next. The further afield you go to sell your products, the further afield you must go to accept returns.
Want to learn more about reverse logistics, check out our article “The Difference Between Forward & Reverse Logistics“.
What challenges are you currently facing that are disrupting your supply chain, ultimately impacting how you service your customers? My team and I are ready to help you optimize your supply chain. Contact me today to discuss how we can support your growth.