Delegating responsibility is an important part in any business. For online businesses the need or outsourcing is even more pronounced. In a market that demands near-perfection if one wants to stay competitive, there’s a lot of work to be done. One of those things is the logistics department.
While it might seem as more of a background process, the quality of your logistics is actually obvious to the consumer. Based on how quickly your shipment arrives, in what condition it arrives, and how occasional problems are handled, the buyer knows what kind of company they are dealing with.
This can put a huge strain on a company’s resources. Furthermore, it might take years to perfect the process. A solution that is getting ever more popular is outsourcing. By delegating this portion of your business to a professional fulfillment logistics company, you can guarantee premium service at a fraction of the cost and frustration.
What is 3PL and How Can You Benefit From It?
3PL or TPL are the abbreviations for Third-Party Logistics. Third-Party Logistics denote the outsourcing of all logistics processes to another company. This includes things like warehousing, registration, packaging, transportation, delivery, and so on. Taking this approach has many advantages. But to keep it short, here are five.
- Reduced Cost
Due to the size of available warehousing and e-commerce fulfillment resources professional companies have at their disposal, prices will be significantly lower. This is particularly true for storage space. When renting your own warehouse, you pay a flat price regardless of the space you actually use. Quality logistics companies will bill you only for the space you use.
- Experience and Professionalism
When taking on logistics on your own, you quickly face the problem of how much time it takes to establish a working operation. Professional logistics companies have a well-oiled process already established. All you have to do is sign up.
- Better Transport Options
Large logistics companies usually have access to modes of transport and delivery that you wouldn’t be able to use yourself. That can mean internal shipping operations, or special deals with shipping companies. The main reason for that is the sheer volume of goods they transport on a regular basis. By consolidating shipments they are able to get better deals.
- Technological Innovations
From warehouse management software to shipment tracking, a good logistics company has a plethora of technological innovations that make things run smoother. You can reap this benefit without having to invest into expensive software and technology.
- Reduced Risk
Logistics companies will usually provide you with insurance for your goods. Those insurances can cover everything from natural catastrophes to theft. And the best ones also handle returns, minimizing your losses.
The Importance of E-Commerce Fulfillment Outsourcing
Outsourcing the fulfillment process of your e-commerce business frees up much needed resources for further expansion. Additionally it provides you with a level of professionalism and efficiency you would have to invest a lot of time and money to attain on your own. They also offer things like bonded warehouses that require special licenses and permits to operate.
Finally, by outsourcing your fulfillment process you can gain easier acces to foreign markets. By moving your fulfillment operation to a center in Europe you can make a real impact on the European and North American market from a centralized point. This cuts delivery times significantly while simultaneusly adapting your brand image to the local preferences.