Can Third Party Logistics Companies Demonstrate Savings?

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Thousands of business globally outsource third party logistics (3PL). A recent study shows that 96 of the fortune 100 companies use a third-party logistic provider. There are countless benefits of using outsourced services to manage the entire logistics of a company. It is common practice for a small to medium sized business to outsource their 3PL to take business to the next level.

Advantages of using an e-commerce fulfilment logistics provider

Focusing on what you do best

Essentially using a third party logistics company frees up your time. Hardly anyone starts an e-commerce business because they enjoy inventory management and despatching items. Having said this, fulfilment is a mandatory pillar of your company’s ability to survive and grow. Using a managed warehouse solution with the necessary warehouse facilities the burden of the entire logistics is therefore taken away, enabling you to focus on growing your business which are essential for your input.

In safe hands

Outsourcing your logistics to a fulfilment warehouse means that you are allowing specialist in the logistics industry manage your fulfilment. Your fulfilment warehouse would therefor take complete control over your inventory, pick & pack, despatch and returns. Implementing their skills and knowledge of the industry your service levels can only improve whilst maintaining a professional overview of compliance in your shipping activity.

E-Commerce fulfilment and warehousing systems

In the modern era keeping up with technological advances in almost every industry is pivotal for success, there is no exception for the warehousing and e-commerce fulfilment industry. Software platforms for warehouse storage all the way across to integrated e-commerce fulfilment are highly developed and work wonders in improving the performance of modern warehouses. With the markets leading software platforms productivity is improved significantly which therefor has a knock-on effect on the level of service for fulfilment. The 3PL provider relies upon technologies to keep the business running at optimum level so you as the customer can rest assured knowing that your products and clients will benefit from the most comprehensive shipping and warehouse management systems available. 

Benefiting from other clients warehousing and shipping solutions

Volume matters. To improve cost and service level when it comes to fulfilment and shipping most global carriers base price rates on volume of shipments. When outsourcing your logistics to a 3PL warehouse you’re essentially become one of many customers using one platform. Which in ley man terms means that your rates are based on the volume of several customers therefor a noticeable saving and enhanced service availability for shipping and distribution. Essentially, the third party logistics provider has negotiating and buying power that you, as a private company, simply do not have.

Real time savings for your business

As a business owner it is safe to say the old saying ‘time is money’ is one of the key elements of recognising how efficiently you operate as a business. By outsourcing your warehouse management, logistics, shipping and pick and pack you are freeing up time which you would otherwise spend in shipping and returning goods. Costs for storage, staff hire, business rates and other general overheads are also eradicated in relation to fulfilment. The key factor however is that with an improved service level you are bound to have happier customers with fewer delays they would be subject to.