The Beginners Guide to 3PL (Third-Party Logistics)
When looking at the world of logistics you’re bound to come across the term 3PL — or third-party logistics. This is an imperative term that will come in handy regardless of your industry. 3PL services cover everything from warehousing to freight management; if you are looking to outsource your logistics operations to a 3PL operator such as elite logistics australia, then keep reading to find out the fundamentals including 3PL warehouse management and scalable software integration services.
3PL in a nutshell
Any company that trades in physical stock will need to store their products somewhere; the larger the business the more products are bound to need storage and transportation services. At some point, this can become too much and often too expensive to handle internally, and that’s where third-party logistics comes in as a solution designed to solve all those problems.
3PL packages all the attractive services and needs of logistics in one outsourceable bundle, giving you more time to concentrate on pressing matters within your business whilst still allowing you to check stock levels and enjoy full transparency of the logistics operations. There are several advantages to third-party logistics, but the primary benefits are what we’re going to be mostly concentrating on in this guide.
Potentially the most attractive element of third-party logistics is the 3PL warehouse service. Warehousing in the 3PL sector is about more than just storing your inventory, but about having the capability to scale the space when necessary. For retail stores, boxing day or black Friday will mean a temporary influx of stock that will need to be stored and moved rapidly; this is something that a 3PL warehouse provider should be able to manage effortlessly.
In addition to on-demand scalability, a proficient 3PL provider will employ uniform and smart inventory practices to ensure that all stock is catalogued and accessible not only physically, but also digitally so you can see precisely what and how much stock you have. The latter is achieved via integrable digital solutions that enable you to access everything related to your business’ logistics in a single online environment.
Integrable and scalable cloud services
A modern business deserves modern technology to complement and that’s why any professional 3PL vendor such as ELA will employ state-of-the-art cloud-based logistics solutions, including freight management systems (FMS) and warehouse management systems (WMS), that will allow you to integrate all your existing systems for streamlined access.
Get everything from real-time freight updates, route performance and efficiency reports to full tier-one WMS capabilities completely integrable with your ERP. This integration and scalability allows you to be as involved in the statistical and logistical side of things as you want to be, giving you the option to review performance statistics anytime you want to or simply leave it all up to the 3PL provider.
Streamlined fulfilment solutions
When you engage a 3PL provider, you’re not just outsourcing your stock to a 3PL warehouse or allowing them to handle your freight but are also gaining said provider’s extensive freight network; these networks unlock next-level capabilities such as seamless same-day or next-day delivery, growing your eCommerce capabilities and offerings, allowing you to effortlessly scale your service to meet the needs of certain customers.
The right 3PL provider will have dealings with a range of couriers so they can choose the appropriate vendor for each job. Combined with the scalable 3PL warehousing solutions, eCommerce will become a simple and streamlined operation that will provide professional top-tier service to your consumers.
3PL providers are cost-effective
Did you know that outsourcing your logistics can actually be more cost-effective? Maintaining a warehouse, for example, can become quite costly; and the time you spend handling in-house logistics means less time spent on other important aspects such as potential sales-boosting opportunities.
A 3PL provider will manage everything and use their own facilities meaning you won’t have to take on the extra maintenance or running costs; you also won’t have to worry about hiring extra staff and managers to oversee the day-to-day operations. Do yourself a favour, if you’re looking to expand or have recently expanded your business and require reliable, scalable and modern 3PL providers, then reach out to us today.
ELA — 3PL specialists that care
elite logistics australia are 3PL specialists that are with you every step of the way, ensuring all your needs are looked after and that all your logistics goals are achieved and surpassed. We operate Australia-wide, own a state-of-the-art 3PL warehouse in Victoria, employ cutting-edge integrable logistics and supply chain technology and have partnerships with all the top courier services. With an in-house fleet of trucks, you’ll be hard-pressed to find a more efficient and down-to-Earth 3PL provider.