A Third-Party Logistics Provider, or in short, a 3PL, is a key component in the management of many brands supply chains.
Why is this, you ask?
As a 3PL provider we provide the infrastructure and expertise to manage the physical movement of product for businesses. Eliminating the need for you to invest in warehouse space, technology and the human capital it requires to carry out logistical processes in business, and allowing you to invest and focus on your core competencies, while we focus on ours.
I am sure as you read this article you are aware of the functionality of a 3PL, performing logistical activities such as pick, pack and dispatch, receival of inbound inventory and warehousing, but what you may not know are the benefits a 3PL provider can give your business that are not always initially obvious when sourcing the right avenue for how to manage your supply chain.
One of the biggest benefits of using a 3PL provider is that you only get charged for the spaces and services that you use! If you are a start-up company finding your feet in your industry, you may only be holding a few hundred to a few thousand products at a time, while only doing 20 orders a week out of your current facility.
Using a 3PL, you have the benefit of using more or less space depending on your needs at that exact moment. Less money spent on rent, and more for your bottom line.
Additionally, to lowering your overheads, as a 3PL business, we have a valuable resource network with more buying power when it comes to freight. With extensive carrier networks we can deliver cost savings & a wider distribution network with freight from the moment you move over to us.
With more and more businesses taking advantage of the booming e-commerce industry, there may be a few of you that are currently doing business out of your garage. While there is no investment of the infrastructure that I spoke about above with your current storage capacity, there is also little to no ability to scale your businesses growth.
Let’s get this straight - starting out this way is definitely a good way to cement your e-commerce market share, but for every business there is a point where you have to decide when your current capacity is no longer feasible. If you are reading this article chances are this has happened to you already!
When you use a 3PL they will provide you with a scalable solution, where they can do fulfillment of 20 orders a week, all the way up to a few thousand orders per day. As you grow, your relationship with your 3PL provider will grow too & they will be able to offer you different options for your growing needs and scale your price accordingly.
Many 3PL’s have been in the Warehousing and Logistics business for many decades, and with that comes expert industry knowledge. This knowledge allows a 3PL provider like Western Distribution to improve our processes and technologies within our warehouse to deliver you efficiencies from day one and throughout your growing relationship with us, without you having to invest significant time and profit.
Interested in discovering what more a 3PL provider like Western Distribution can offer you?