Having to manage shipping and logistics for your company can be tiresome. That usually because of several steps involved in the process and a challenge to deal with product returns from unhappy customers. At that time, you may think if you never had to package products.
Fortunately, it is possible to have your logistics taken care of without you paying attention to it. You can benefit from third-party logistics.
In this article, we will discuss third-party logistics and explain why it may be the best solution for a lot of businesses out there.
What is third-party logistics (3PL)?
Third-party logistics is a type of contract packaging. Contract packaging companies offer this service to new and established businesses. In other words, this model involves outsourcing logistics operations to a contract packaging firm. This practice is more common among e-commerce businesses.
3PL companies take over logistics responsibilities from their clients. That way, the clients can work on other elements of their businesses without having to worry about packaging, shipping, and product delivery.
3PL companies help prevent their clients from getting overwhelmed by some tough responsibilities, including labor management, warehousing, inventory control, and other logistics-related operations.
Who can get services from a 3PL provider?
Third-party logistics has become immensely popular among e-commerce businesses. However, they are not the only ones using this logistics model.
This model is suitable for any business willing to benefit from outsourcing their logistics to get the burden off their shoulders. As you may know, having to manage packaging, shipping, warehousing, storage, and inventory can be quite hard, especially when you have to focus on other business elements. Third-party logistics can help save a significant amount of money and time.
Learning about third-party logistics
Before you hand over your logistics operations to a contract packaging firm, you will have to have some knowledge about the topic beforehand. This initial know-how will help you kick-start your search for the most suitable packaging firm. The best way is to read about third-party logistics online. You will have to understand 3PL in the context of contract packaging.
This fundamental information will help you decide if you can truly benefit from a 3PL firm. It is all about seeing whether hiring a 3PL firm makes sense for your business.
Hiring a 3PL company
Hiring a 3PL firm can be a bit tricky, especially if you do not have enough experience dealing with contract packaging firms. The risk of falling into the hands of scammers can be a cause of concern. Moreover, you will not want to hand over your logistics operations to a company that doesn’t have much idea about the industry best practices. Remember, logistics is like a backbone for a company. You may have worked quite well to develop and manufacture your products, but all that will be of no benefit if the process of packaging and shipping is not flawless. Your customers will hate it when they receive a damaged product.
The best approach is to search for the best company in the industry and read some customer reviews to have an idea about their quality of service. You can also ask your packaging supplier for a suggestion.
