Streamline Your Business With The Right Freight Forwarder
3PL is the acronym for Third Party Logistics. It is often used as a synonym for logistics outsourcing. Third-party logistics refers to the use of 3rd party companies to fulfill parts of an organization's delivery, warehousing, and inventory needs. It is commonly used by companies that are either on the verge of growth or trying to establish a foothold in a particular market.
For 3PL providers, it is a means to increase profits by focusing on established markets rather than establishing new markets. The supply chain management software, which is often sold as a bundled solution, enables 3PL providers to track and analyze every aspect of the supply chain. By integrating this software with their existing inventory management software or their own in house ERP system, a 3PL provider is better positioned to provide their customers with more efficient and comprehensive customer service. By offering improved inventory tracking, better order management, easier tracking of the logistics of goods, access to real time information, as well as lower costs and reduced risks associated with poor supply chain management, 3PL providers can offer their clients an edge over their competitors by offering them access to markets that they might not otherwise have.
The most common uses for third party logistics include shipping, receiving, pick and pack, and export. When shipping a product from the factory to the retailer, a 3PL provider tracks, package and delivers the product to the customer. A 3PL provider also takes care of insurance and customs requirements. In terms of pick and pack, a 3PL company processes orders and works with the suppliers to deliver products directly to the customer. With regards to exporting, the responsibility of warehousing and transportation falls to the 4PL.
Freight forwarding is another area where 3PLs play an important role. The freight forwarding industry is an ever changing landscape. It is estimated that in North America alone, ecommerce shipments will continue to rise at a compounded annual rate of more than 10%. As a result, the need for fulfillment companies that are able to manage the logistics of the cross country shipment of freight will only continue to grow.
There are many ways that 3PL carriers can help their clients. They can provide a full range of services, from packing, transportation, to pick and pack, and even insurance and customs compliance for the international transport of hazardous and perishable materials. They are also able to assist with the supply chain operations of manufacturers, wholesalers, distributors, importers, exporters, brokers and others. 3PL carriers are often referred to as freight brokers.
Many businesses are looking for ways to save time and money. One way to save time is to utilize the resources of 3PLs. A 3PL will generally work as a logistics partner with the client, providing strategic planning, advanced technology and efficient warehouse space. If you're looking for a way to improve your logistics, consider investing in a 3PL service for your business. A 3PL can save time, money and reduce risk in business operations.
When searching for a provider of 3PL services, be sure to research a company that has experience working with the type of goods that you have. It's also important that the carrier you choose can help you streamline your freight forwarding operations. Many companies offer customized shipping solutions and services. Check out the services offered by each 3PL to determine which may be the best carrier for your needs.
It's important that your business has an efficient supply chain. By streamlining your logistics solutions, you'll be able to expand your customer base, reduce operation costs and improve customer satisfaction. Check out the available options with a 3PL company today. You'll be glad you did.