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What Does a 3PL Company Do?

Learn what to expect from your 3PL company

The ever increasing and ever-changing jargon that surrounds supply chain management (SCM) can make it complicated. As Australia’s leading choice for warehousing, storage and distribution, we have a wealth of experience and the in-depth knowledge to help demystify everything surrounding the supply chains. From 3PL to 4PL and kitting, contact us for the expertise and advice of established professionals.

What is 3PL?

3PL is the abbreviation for third-party logistics, a service that allows your company to outsource all your logistics functions to specialists.

However, it is not an ‘all or nothing’ service. Rather, a 3PL provider will help with just one or a few aspects of your supply chain.

Traditionally, 3PL used to refer to transportation and warehousing, but these days it refers to a more comprehensive range of outsourced services that encompass just about all aspects of the supply chain.

Functions that may be outsourced include:

  • Transportation
  • Warehousing
  • Packaging
  • Inventory forecasting and management

It is important to note that 3PL and 4PL are different. The distinction between the two is covered in detail here.

Benefits

You already know that outsourcing one service to experienced professionals gives you and your employees more time to dedicate resources to other critical areas. It also helps your business realise its potential where profitability is concerned. That is, however, only the tip of the iceberg with a host of other benefits including:

  • Access to proven expertise

Whether you’re just starting out or are an established outfit, being able to rely on an experienced professional to oversee such critical processes is a big advantage. Logistics is not for the fainthearted, with each function coming with its own set of challenges. Securing the services of experts will reduce any fluctuations in performance, and most importantly, help you provide a consistently high standard of service to your customers.

  • Cost savings

Where warehousing is concerned, logistics can be a costly process. Looking after and maintaining your own space will take its toll on your resources. When you outsource this critical process, it will no longer be a concern to you; your chosen 3PL company will help maintain optimal inventory levels, helping save you money on storage costs.

  • Network expansion

The superior efficiency and effectiveness of 3PL providers is not by chance; we have established a supply chain that executes each function with precision, and in the most cost-effective way. While you can forge your own in-house supply chain, you lose out on the benefits that are associated with an expansive network such as volume discounts and faster service.

  • Scalability

Expanding your business to capture and cater to a larger market can be challenging, especially because it may require a costly increase in space, labour and transportation. Securing the services of a 3PL provider allows you to overcome these barriers to target more of your market, both locally and internationally, with ease and agility. Furthermore, if your business is affected by seasonal variations, we’ll help you manage your stock levels accordingly.

  • More customer satisfaction

With accurate order fulfilment, cost cutting and precise inventory management at your disposal, your business will see an increase in customer satisfaction. This is because the outsourcing of these services allows you to respond with unrivalled business agility to meet your customers’ changing needs.

How to choose the right 3PL company?

It’s no surprise that so many companies will be vying for your attention. Each one will claim to be your premier choice for third-party logistics but before you select a new supply chain partner, there are a few things to consider:

  • Capacity

Whether it’s your current or future output, your chosen 3PL provider should be equipped to scale their operations to meet your needs. Make sure they can handle the variations, so you can be consistent when meeting the demands of your customers.

  • Quality references

As a business, you’re well aware of the metrics that determine your business’ success. Take the time to seek references that confirm that your chosen 3PL company is competent and capable enough to deliver what is expected.

  • Compatible technology

Systems integration is a critical component of ensuring an effective partnership with a 3PL company. Ask your prospective candidates what systems they use and whether they will integrate seamlessly with yours.

We are a specialist provider of third-party logistics. The high standards we maintain has earned us the enviable reputation for reliability and customer service excellence. If you’re looking for 3PL services you can depend on, get in touch with us today.

Contact us today for superior 3PL services that help you maximise your bottom line.