What is 3PL and How Does it Work?

14 May 2020 Freight Shipping

Understanding what 3PL is and how it works will help you decide if working with a 3PL provider is in your best interests. At C&D Logistics, they understand how valuable working with a reputable 3PL provider can be. That is why they work closely with their customers to ensure that their 3PL needs are being properly met.

What is 3PL?

Third-party logistics (3PL) is a service that allows businesses to outsource their operational logistics for everything from warehousing to delivery. 3PL companies offer a range of different logistics and supply chain management services, including transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding.

How Does 3PL Work?

Third-party logistics services work to help keep you competitive in the marketplace by handling the packaging and shipping of products. Since eCommerce giants like Amazon are able to provide one- and two-day shipping, working with a fast-acting 3PL partner is even more important. 3PL companies specialize in supply chain management, which means that they can help you optimize the fulfillment, distribution, and shipping processes for your business, ensuring efficiency and cost effectiveness.

When to Partner with a 3PL Company

No matter what industry, product, or platform you work with, outsourcing your business’ logistics services can be extremely beneficial. Some of the reasons a business should choose to work with a 3PL company include:

Need More Inventory Space

As more and more customers begin to order your products, chances are that you will need more storage space to store your inventory. Choosing to work with a third-party logistics provider will not only help you better manage inventory levels but will also ensure that you are able to stay organized.

Shipping a High Volume of Order Per Month

Companies that ship over 100 orders per month should consider outsourcing shipping and logistics to a 3PL provider. Outsourcing low-value tasks, such as kitting, assembly, and preparing items for shipping, can help protect your bottom line and allow for easier company growth.

Need to Speed Up Shipping

Businesses that are fulfilling orders themselves can often have a hard time keeping up with companies like Amazon, which have set the bar for other eCommerce companies to provide quick shipping. Choosing to work with a 3PL provider will help speed up the order fulfillment process, allowing businesses to remain competitive in the market.

If you would like to learn more about what 3PL is and how it works, or if you are interested in one of their logistics services, please contact C&D Logistics at 604-881-4440 or by filling out a contact form on their website. You can also stay up to date with the latest news by following them on Facebook, Instagram, and YouTube.