The term 3rd party logistics companies describe the outsourcing of ecommerce logistical operations, such as inventory management, warehousing, and fulfilment. By providing ecommerce retailers with the infrastructure and tools to automate retail order fulfilment, 3PL providers enable them to achieve more. Orders cannot be sent by a 3PL without inventory on hand. In a 3PL warehouse, "receiving" inventory refers to accepting incoming inventory and then storing it. Every 3PL has unique procedures and room to receive and store merchandise.
In their fulfilment centres, 3PLs use technology, automation, and skilled pickers and packers to perform a range of fulfilment services for sellers, including DTC and B2B order fulfilment. Some third party logistics services have merchant-facing technologies that can interact with a number of sales channels, specialise in particular product categories, and even offer value-added services to further optimise the supply chain.
The following are the most frequent services provided by 3PLs:
- Introducing their technologies to online retailers
- Obtaining and storing stock
- DTC and B2B order picking and packaging
- Arranging pickups and negotiating pricing with carriers to enable expedited and normal delivery
- Assembling and prepping supplies
- Branded boxes, inserts, and gift notes are examples of customization
- Handling returns
- Transferring inventory and cross-docking
- Distributed inventory (which enables brands to distribute their stock around the nation or the world)
- Setting up the facility, employing fulfilment agents, and training personnel
There are several advantages to working with a best 3PL companies for ecommerce firms trying to grow. Finding out which 3PL firm is suitable for a particular need is the difficulty. The 3PL concentrate on retail fulfilment and logistics, and they enhance company processes as it expands and scales. 3PLs supply the necessary resources for you, saving you the time and effort of planning and staffing up for logistics. You may gain instantaneous insights on company performance using their user-friendly technologies.
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