3PL also known as third party logistics is the management of warehousing logistics, that means everything from inventory and stock management all of the way through to shipping, it’s designed to allow your business to concentrate on the key sections of your enterprise whilst leaving the logistics to a ‘third party’ company. For large enterprises, this can be a significant time and cost saver.
All about 3PL
3PL companies in Sydney supply a variety of solutions involved all the logistics of the distribution chain. Wondering if your company should use a 3PL Sydney provider? There are many advantages of using a third party logistic company, the largest being that it frees up your company to concentrate on other areas of your business such as advertising sales and product development. It can also help to decrease shipping and warehousing costs, 3PLs have significantly more leverage with cargo companies and can negotiate for much lower prices due to the shipping frequency and cargo quantities. Employing a 3PL makes it much easier to scale down or up as desired. Most companies experience alterations in their shipping needs throughout the year. Employing a 3PL Sydney company permits you to handle peaks and troughs more efficiently. They also offer a much better experience for your customers than most businesses managing their own shipping could likely ever manage, customer often expect next-day or same-day delivery as standard. Employing a third-party logistics suppliers means your business can provide fast shipping. Working with a third-party logistics company also means that the quality of your products will be carefully checked and any damages or losses will be insured.
Expertise and experience
One of the main benefits of working with a third-party logistics company is that they come with significant experience and expertise and an already well-established network. Warehousing and shipping logistics are complicated, contracting a third party company means that you will gain immediate expertise within the area. Particularly if you’re just starting out, getting a company that specializes in logistics can significantly reduce the headaches involved in managing shipping and customer satisfaction. Transport, warehousing and fulfillment come with significant challenges, a third party company can make the entire process streamlined and will leave you with time to focus on your core business functions, allowing you to scale up and grow your business.
Overseas markets
Working with a 3PL is particularly useful if you are selling globally as they can look after documentation, customs, duties and other problems that can arise when dealing with overseas shipping such as import taxes. They’ll also save you time as they know the relevant laws around shipping to over nations.
Space-saving
Finding space for inventory can be a problem for many companies who are limited in their office or business space, using a third-party provider means taking advantage of their warehouse spaces and can save you significant sums of money on renting a space. Having them manage your stock can also mean far more efficient inventory management and will likely mean you have much better oversight of stock levels and ordering requirements.
Finding a good provider
Finding a good supplier may be an overwhelming task, there are a lot of options out there, so how do you find one you trust? Here are a few things you should think about.
What technology do they use and is it compatible with your business? For instance, do they use a cloud-based stock management program or how do they manage and control inventory? Do they have any good references from other companies, preferably ones in a similar industry? Think about what their clients say about them, as this is a good indication of what to expect.
