If shipping is a crucial aspect of your business and you would rather invest your time into other areas, a third-party logistics provider (3PL) may be the solution you need to achieve your logistics objectives and boost your organization's efficiency. Regardless of the size or age of your e-commerce company, a 3PL is worth considering if you plan to grow, scale, or expand your offerings – tomorrow or further down the line.

What is a 3PL?

At the most basic level, 3PLs offer logistics services to support all aspects of shipping operations for businesses transporting goods to customers. Working with a 3PL partner means that your team gains an outsourced shipping team that acts as an integral part of your e-commerce business processes. And if you choose the right 3PL partner, you can gain much more than just the labor services. 

Typically, 3PL providers are integrated into a company’s warehousing and transportation procedures, allowing company owners, managers, and team members to focus on aspects of the business that need their attention and allowing the 3PL logistic experts to handle the rest – with ease, expertise, and efficiency. 

You can even choose the level of involvement a 3PL partner has based on your needs and goals. The right leading 3PL (like the team at ShipDaddy!) creates value in ways that enhance your operational, financial, and end-customer performance.

Support Services From 3PL Partners

3PLs can provide a single service or deliver a service bundle that extends across multiple aspects of your supply chain. For most e-commerce businesses, hiring a 3PL partner that provides more than just one service is desired. These services work with your processes to increase your supply chain visibility, whatever support you need. 

Here are some of the common ways 3PLs support e-commerce businesses like yours. 

Transportation

3PL providers have the ability to arrange mail carriers, combine less than truckload (LTL) or less than container load (LCL) freight, monitor freight payment and insurance documentation, and collaborate with private fleets in the realm of transportation. For many e-commerce businesses, these services are vital, because the business owners often don’t have the knowledge or expertise starting off to handle these functions themselves. 

Partnering with a 3PL could help reduce your transportation expenses, streamline processes, and devise remedies for intricate supply chain predicaments. And since third-party logistics providers are connected to multiple stages of supply chain operations, they can frequently offer instantaneous insight into your inventory as it is transported from point A to point B.

Global shipping

For businesses, shipping internationally can be a convoluted and daunting process. However, a 3PL provider can manage the complexities of global shipping logistics, such as customs, freight forwarding, and consolidation, thereby saving you resources, time, and money. 

Serving as a representative of your business, a 3PL also ensures that all trade compliance regulations are satisfied, expenses are controlled, and the implementation of the plan goes according to plan.

Information technology

3PLs frequently leverage information technology to oversee e-commerce, inventory management, transportation, and warehouse functions. This means your business can take full advantage of their systems and technology without carrying those costs yourself. 

Among the most widely used tools for 3PLs are electronic data interchange (EDI), application programming interface (API), and cloud-based systems. Regardless of the specific tool employed, the objective is to heighten transparency into supply chain procedures and shipments while in transit.

Knowledge and expertise

The logistics involved in managing a supply chain can be intricate, with fulfillment, warehousing, and shipping posing significant challenges. However, 3PL firms possess extensive expertise and industry networks to swiftly simplify procedures and provide clients with years of experience.

When shipping goods globally, 3PLs can offer guidance regarding potential hurdles, such as documentation, customs, duties, and differing shipping regulations. Partnering with a third-party logistics provider can also alleviate the burden of ensuring compliance with international shipping requirements.

A partner you can trust 

Be sure to vet your 3PL partner and gain insight into their knowledge of your industry. As business owners ourselves, the leadership team at ShipDaddy has years of experience with our hands in every aspect of the business process. From launching Kickstarter campaigns to fulfilling all aspects of the supply chain, we understand the nuances that come with logistics and allow our customers to leverage our knowledge and capitalize on all we’ve learned over the years. 

Efficiency and speed for your customers

Employing the services of a 3PL can substantially diminish or altogether eliminate the requirement to invest in warehouse space, technology, transportation, and staff for performing logistics tasks. This enables businesses to concentrate more on their core competencies.

Additionally, third-party logistics providers can alert organizations to potential supply chain errors that could be expensive and risky. Through industry forecasting, 3PLs also assist in optimizing inventory levels, thus reducing inventory holding costs.

By collaborating with a 3PL, businesses can save time by accessing the necessary proficiency to perform supply chain logistics in an efficient manner.

Start scaling operations and gain the flexibility you need now

By engaging the services of a 3PL, a company can adjust their inventory space, labor, and transportation to meet current demands. During seasonal periods and industry fluctuations, a 3PL can help facilitate a smooth transition.

When expanding into new markets, businesses can count on 3PLs to assist in growth within unfamiliar regions. With a constant focus on enhancing supply chain operations, 3PLs have access to the necessary tools and technologies for making difficult adjustments that might otherwise be challenging for companies. Management software can scrutinize and track supply chain processes to eliminate inefficiencies.

Consider a partner like the experts at ShipDaddy to help bring continuous improvements to your logistics process, leading to savings and greater efficiency during your logistics initiatives. Get a free quote to work with our team today! 

‍