Efficient logistics management will improve the customer experience is critical to growing an eCommerce business. But cargo logistics has many trivial and complicated tasks that need to handle. It is why most companies choose to outsource the shipping and fulfillment operations to a 3PL (Third-Party logistics) provider. In this article, we will talk about 3PL logistics meaning, how it works, and its benefit for you.
What is 3PL logistics?
In a nutshell, 3PL logistics meaning it provides logistics-related services involving transportation, warehousing, inventory management, order fulfillment, information integration, and other value-added services, etc. You can sign a contract with a 3PL provider according to different logistics needs for your business. All-round third-party logistics services allow you to focus more on your core business.
How does 3PL logistics work？
Generally, a 3PL provider can customize 3PL logistics solutions to meet your needs based on your business requests about shipping, storing, and fulfilling. For instance, you are a toy seller have ordered a butch of goods from a supplier or manufacturer. To alleviate the cargo transportation problem, you can use a shipping agent or carrier who will pick up the goods and ship them to your customer’s hand. Professional 3PL logistics also help you handle booking, customs clearance, sea and air freight shipping, etc.
Furthermore, if you put your inventory in a 3PL warehouse and ask them to fulfill your orders, they will arrange delivery automatically when your customer has bought from your online store. It is processed similarly to an Amazon FBA fulfillment center.
As long as you have integrated with the 3PL warehouse system, you can check all the tracking information will be auto-synced to you. The above shipping agent or fulfillment center both act as third-party logistics providers. 3PL aims to serve your eCommerce supply chain by providing a complete set of logistics activities.
What services do 3PL companies provide？
Here are the essential services that a 3PL logistics company can provide:
1. Receiving and transportation
Before third-party logistics perform and ship your order, you should send a batch of goods as inventory to storage in the 3PL warehouse. For example, if you have to ship cargo from China to the USA 3PL warehouse, the 3PL provider will arrange international shipping to complete cross-border logistics. Such as freight forwarding, customs clearing with tax, freight consolidation, etc.
2. Warehousing and inventory management
You can store your goods in the professional warehouses of a third-party logistics company that can meet the storage requirement of various goods. Its inventory management services allow you to know about the stock levels without any extra work on your behalf. An expert 3PL provider not only assists you in promoting the efficiency of goods distribution but also reduces the pressure on warehousing for better business operations.
Like the Airsupply’s warehouse, it provides seven days free of storage and can help you to check and repack the goods. If needed, it also can sort and pack the items according to the requirement and print the label for your eCommerce business.
3. Order fulfillment
Typically 3PL logistic provider has an order management system to process the order on your behalf. When your customers have placed an order on your online store, it will auto-sync the order information to your 3PL partner if you have integrated with them. Then, the 3PL order fulfillment center will pick out and pack the items according to the order details. They also print the shipping label for carriers can take and deliver the package to your customers.
4. Shipping and distribution
After packaging, the 3PL logistics company will screen for a suitable carrier or use their fleets to make a cost-effective shipping plan for you. They allow your items to be shipped to the destination fast and promptly to meet your customer expectations. In addition, the tracking information will sync with you so that you can monitor logistics dynamics in real-time. A professional 3pl provider not only reduces the delivery time but also gains praise for the enterprise.
5. Returns management
Aftersale services are one part of the shopping line. Sometimes, your customers want to return the items as it was damaged during shipping or for other reasons. A 3PL logistics provider will receive and process the return for restocking or destruction of the products under the return policy and your rules.
Airsupply has rich experience in global transporting to 3PL/FBA warehouses. It supports door-to-door freight shipping that will reduce importing and exporting complexities. Whether you need dangerous goods shipping, LTL, or other transportation requests, Airsupply always helps you with supreme technical support in quick response.
While most 3PL logistics offers the above services, it may have a bit of distinction because of the focus on different functional areas. You can check as below:
– 3PL freight services: It refers to primarily engaging in cargo transportation services from your supplier or manufacturers to a specified destination. Like ASL, its freight activity provides customers with integrated services such as door-to-door transportation, customs clearance, basic shipping methods, LTL, FTL freight shipping, and so on.
– 3PL warehousing: A 3PL provider primly focuses on goods storage and order fulfillment services. It also offers value-added services, such as commodity distribution, circulation processing(picking and packing), etc.
– Financial and Information: Normally work for larger companies, this 3PL optimizes your logistics network by providing freight payment and auditing, cost accounting and control, inventory tracking， etc.
Now that we are preliminarily acquainted with the principal services provided by 3pl companies. You can select a 3PL logistics provider that suits the specified requirements of your business according to the above information. If you still have questions, you can contact and check with the Airsupply Logistics team who is willing to provide logistics consulting services for you.
What benefits of working with 3PL logistics?
The advantages of 3PL logistics services are reflected principally in the following aspects：
1. Time and cost saving
Outsourcing logistics to a 3PL provider can help you reduce the investment in transportation equipment, warehouse rent, and other shipping processes. 3PL logistics services also help you save time so that you don’t need to spend time on the packaging, booking, or negotiating for cargo shipment, etc. For this, you can invest more funds and time in your company’s core business.
2. Expertise and resources
3pl logistics companies have the expertise for different logistics markets, including transportation, warehousing, and other value-added services. It also has formidable transportation and distribution networks that can support you with flexible and diverse shipping services.
3. Improve efficiency
A reliable third-party logistics provider can fulfill your order effectively to ensure your customers receive the products quickly. With efficient warehousing and fulfilling operation, 3PL services greatly shorten the delivery time. It is significant to improve customer experience and satisfaction.
How to choose a 3PL logistics provider?
1. Clarify the goal of the logistics service
If you choose to outsource your own logistics business, it must first clarify the direction and goals of the logistics for your enterprise. It is better to know what kind of effect you want to achieve and to choose a matching 3PL service provider to avoid losses to your enterprise.
2. Checkout the 3PL company reputation
A good reputation cannot be built overnight and needs long-term and unremitting persistence. When choosing a 3PL logistics provider, it is fundamental to investigate its reputation situation. Such as whether the 3PL can deliver the goods in the promised time. Or if they can solve the shipping problem promptly, etc.
3. Lookout if the 3PL provides personalized service
When choosing a 3PL logistics, you should thoroughly consider the fulfillment needs of your target customers. You should pay attention to whether the operation mechanism of the logistics service provider is flexible. So it can meet the shipping change or personalized requests such as storage environment, delivery timeliness, delivery location, delivery method, etc.
4. Check the 3PL provider information network
Before working with third-party logistics, it is also necessary to fully consider the information level of the logistics company. Warehouse management and transparency of cargo transportation should all be standards for select 3PL services.
A 3PL company with high information technology is helpful for you in managing goods and in-transit transportation. And it allows you to retrieve inventory and receipt status at any time. It is convenient for you to make decisions more quickly.
Final thoughts
3PL logistics provider can streamline the transportation process and form a superior shipping network in the highly competitive market for promoting sales for you. With the comprehensive services of the 3PL company, not only can you save more costs but have a steady stream of help to develop your business.
Airsupply Logistics works with thousands of vetted carriers. Whether you want to get an instant quote or need help building a better logistics supply chain overseas, ASL can help you with 24/7 support. You can always talk with their logistics specialists to help strategize what’s suitable for your business.
