What Are the Benefits of 3PL?

Are you a business owner who is struggling with keeping on top of your product shipping? Making sure that customers receive products on time, in good condition, and with no complications is essential to keep your customers happy.

Third-party logistics providers can help you to increase logistical efficiency and improve warehouse operations. And can also ensure that your ecommerce businesses provide the most efficient service to your customers.

Whether you own a small online business, a big company, or anything in between – third party logistics could prove invaluable in removing the pressured and time-consuming process of daily shipping.

We will look at 4 main benefits of using 3PL services in Melbourne for your business:

1. Increase Shipping Efficiency

Using a 3PL company will help you to increase overall profitability, and efficiency of your company.

When you engage this service you will eliminate the need for warehouse space, shipping staff and managers, shipping equipment and transportation.

This could lead to substantial cost savings when compared to the costs of developing your own inhouse fulfilment centre. It will also allow you to invest more time and money in improving other areas of your core business operations.

Choosing a 3PL service can also help you to identify areas in your current inventory management and supply chain which are inefficient and costing your money.

Industry expertise and forecasting will also help you to effectively manage your inventory levels and avoid unnecessary costs.

3PL warehouse management will allow your company to benefit from the experience and expertise which would take years to build up independently. Meaning you will be able to avoid common mistakes and pitfalls which cost competitors time and money.

As well as increasing overall efficiency of your shipping and stock processes, third party logistics can help you to improve customer satisfaction level by increasing flexibility when it comes to shipping and fulfilment.

2. Improve Business Flexibility

Online business and ecommerce are moving at an ever-quickening rate and customer expectations are rising accordingly. Using 3PL services will support you in adapting to new customer demands and changing conditions in your industry.

Third party logistics providers will have the staff, equipment and operations in place to support fluctuations in demand according to season and product popularity. So, you don’t have to worry about shipping delays if you suddenly get an influx of new orders.

The scale of the team dedicated to your shipping can fluctuate according to your sales, meaning that there will be no drop in service levels.

Third party services can also help you to move into new markets and provide you with the tech and support you need to make this a seamless transition. Whether you are looking to increase your reach to new areas or expand your product offerings, 3PL will substantially cut the time and costs involved.

As experts in the field, these 3PL market services will ensure that you are always complying with the latest shipping regulations and that all relevant paperwork is completed.

You will also benefit from access to the lates shipping technology and developments in equipment and software. So your shipping times will always be the best they can be and customer service levels at an optimum level.

Along with increased flexibility, third party logistics services also enable you to scale your business as required with fewer costs involved.

3. Support Company Scalability

When you grow your business with inhouse shipping, you will have to cover the costs of more equipment, staff, and supplies. Using third party logistics means that you can work to scale your company with none of these extra costs or responsibilities.

A large third-party logistics service will give you easy access to larger capacity operations which can support your business growth and expansion.

With dedicated equipment and teams which can be adjusted according to your business scaling, you will only need to spend what is required according to your current sales.

And if you need to scale back on your shipping at certain points, a 3Pl service will be able to support you without you having to worry about wasting time and resources.

Along with supporting your business as it scales, one of the key benefits of third party services is improved customer satisfaction levels.

4. Enhance Customer Satisfaction

If you currently struggle with shipping orders on time and managing demand, then a 3PL service can improve shipping times and customer service levels.

As well as improving shipping times, these services can also add value in terms of package tracking, product return services, and adjusting operations according to feedback.

Third party logistics companies will be able to monitor and track all of your shipments, resulting in less lost post and missed orders.

And the difficult process of handling product returns and exchanges can also be handled out of house, freeing up your customer service representatives to work on other issues.


How Much Does 3PL Cost?

The costs of using a third-party logistics (3PL) provider can vary widely depending on the specific services being outsourced and the scope of operations, but overall 3PL solutions deliver significant cost savings compared to in-house logistics.

Determining the overall costs for third-party logistics requires looking at various services and functions that may be outsourced to a 3PL provider. Key costs can include:

  • Receiving Costs – The fees to offload goods, inbound inspection, and putaway into storage at a warehouse
  • Storage Costs – What a 3PL charges to store inventory, often on a per-pallet or per-square-metre basis
  • Picking Costs – Expenses to select and prepare individual items or orders for shipping
  • Packaging Costs – Any materials, kitting services, and labor to box up orders for transit
  • Shipping Costs – The carrier and transportation management fees to dispatch and deliver finished orders.

A transportation management system from the 3PL can further optimise outbound shipping across multiple carriers. By combining these elements into an integrated outsourced solution, 3PLs can frequently deliver over 10% in savings compared to in-house logistics operations handling the same scope of responsibilities.

When negotiating rates, the total bundled costs need to be weighed accordingly.

How to Choose the Right 3PL Provider?

Selecting the best 3PL partner is an important decision based on multiple criteria. Top 3 factors out of 9 to consider include:

  1. A Strong Reputation for reliability and performance
  2. A Good Company Culture that has shared values as yours
  3. Effective Communication through account management

Assessing providers across some of these facets will help select the ideal 3PL provider that can scale along growth objectives and offer value-enhancing supply chain solutions tailored for evolving business requirements. The right 3PL combines customised capabilities, systemic agility, continuous advancement philosophy and trusted collaborative partnership.

If you would like more information about using a third-party logistics company in Melbourne, you can contact us today on 03 8376 3300 . Whether you own a large company or a smaller business we can provide you with the advice, strategy, and services you need.

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