Companies experiencing rapid growth can benefit from outsourcing their logistics processes to a third-party logistics (3PL) service provider. Leveraging the expertise of 3PL companies will enable these companies to scale their business without worrying about storing and shipping their products and raw materials. Most 3PL companies provide a range of logistics support services that include transportation, warehousing, packing, and inventory management.
Services Provided By 3PL Companies
Logistics management companies control the complex processes involved in the movement of goods from origin to consumption. In a 3PL model, companies outsource packaging and transportation of goods to a contractor. The 3PL service provider will offer services like inventory management, packaging, reverse logistics, shipping and warehousing.
Inventory Management
Inventory management handles all materials involved in the production process, from raw components to in-process products to finished goods. Controlling and managing orders from suppliers and customers, retaining stock storage, monitoring the goods available for sale are all facets of inventory management.
Packaging
Packaging protects the raw materials and products from damage. It plays an integral role in supply chain management by preparing the goods for other processes like transportation, warehousing, etc. Packaging affects every single logistics operation throughout the supply chain.
Reverse Logistics
Managing the return of goods or raw materials to the point of origin is called reverse logistics. This process handles the best possible way for reusing a final product or safe disposal of used goods. The reverse logistics process can help you recover the loss of investment in your failed product by scraping it for parts or repurposing it in a secondary market.
Warehousing
Warehousing focuses on the safe storage of materials in a facility. It encompasses the complex organisation, movement and management of all the stored goods. Sorting the goods for easy access, setting them in order, standardising the process and optimising the handling of goods are key warehouse management roles.
Benefits Of Outsourcing Logistics
By following streamlined processes, 3PL companies reduce the cost and help you save money in logistics. By customising their service to suit your needs depending on the retail distribution or a wholesale business, they will help you transform your logistics costs into variable costs depending on the requirement. Handling of warehouses and logistics software will be taken care of by the 3PL provider. Leveraging their best practices and expert resources, they can fill the gaps in your supply chain and make it more agile and responsive.
Choosing The Right 3PL provider
Creating a positive and powerful customer experience depends on your 3PL provider because they interact with your end customers. You should understand your customers, their needs and align them with your third party team to create a customer-centric supply chain. To gain a competitive advantage in your industry, choose a 3PL team that understands and delivers fast, customer-focused service. With the help of a logistics support company, you can expand your customer base or venture into new markets.
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