What Is A Logistics Service Provider?
Logistics service providers (or 3PLs) are companies that provide supply chain management services such as order fulfillment and shipping, along with warehouse management. Conducting the proper research on 3PLs for an ecommerce business takes time but finding the right logistics partner can both meet and exceed initial expectations.
Routine services offered by logistics service providers include:
- Transportation and shipping services
- Warehousing solutions
- Freight and inventory shipping
- Supply chain management
- Order fulfillment
Why Successful eCommerce Businesses Use Logistics Service Providers
Industry Experience
Nothing can replace experience, especially when it comes to making better decisions to help your business scale. Qualified logistics service providers can offer the knowledge to make your company more efficient and cost-effective.
Retail supply chains are intricate and complex, so partnering with an experienced 3PL can provide a customer support team that can resolve issues quickly, so you can focus on other important business decisions and needs.
Workflow Optimization
Utilizing the infrastructure of your 3PL can streamline processes in distribution services and the supply chain in the fulfillment process. Optimizing your operations with a logistics service provider can automate time-consuming tasks and improve the efficiency of fulfilling and shipping orders.
A 3PL’s technological capabilities can automate storage location decisions, picking, packing, and shipping all while overseeing the entire transportation system for every order that goes through a warehouse. This automation can benefit the expansion of both local and international logistics.
Ensures Growth
Fulfilling and shipping orders on their own can inhibit the growth of a business. Dealing with the hidden costs of warehousing, labor, shipping rates, and insurance along with multiple other minor costs can cut through profits and limit potential growth.
Allowing a 3PL partner to manage logistical tasks and problems can give more time back for more valuable business operations. Less time dealing with logistical issues means more time dedicated to affairs such as marketing, engaging with customers, and other profit-improving measures.
Partner Networks
The network of a 3PL provider supplies a wide array of benefits including experienced partners and integrations that can help in many aspects of ecommerce logistics. 3PLs that have strong relationships with shipping carriers can secure better bulk discounts and shipping rates, passing savings rates on to the customer.
Partners can specialize in specific logistical tasks, such as custom packaging, returns, orders, inventory management and more.
Working With A Third-party Logistics Provider Compared To Self-Shipping
When self-shipping orders, the hidden costs add up quickly. These costs include:
- Packing materials and supplies
- Transportation
- Warehouse management
- Shipping insurance
Along with the increasing costs involved in the physical shipping of orders, the time and labor costs associated with self-shipping can scale quite quickly. By deciding to avoid the route of utilizing an outsourced logistics service provider, these extra shipping-related tasks cost more and more hours of additional labor, which can cut into profits.
Partnering with a 3PL puts all the issues associated with shipping orders, from packing to shipping, into the hands of an experienced, expert in logistical infrastructures with multiple fulfillment center locations. 3PL partners have the best technology and expertise to provide logistical solutions, saving time and money.
Customers See The Benefit From Logistics Service Providers, Too
The benefits from partnering with a 3PL will not only be visible in your company’s logistics; your customers will be able to tell the difference. Here are some ways a logistics service provider will impact the customer experience.
Faster, Affordable Shipping
Extra savings on fulfillment costs means cheaper shipping options for customers, which can reduce cart abandonment and cement loyalty to your brand. 3PLs can ship inventory and negotiate discounted shipping rates along with speeding up delivery, improving overall efficiency.
Better Order Tracking
Partnering with a 3PL that’s technologically advanced can make the entire ecommerce order process much more transparent. Being able to track orders in real-time and outsource the managing of orders can empower customers and assist with fixing customer issues faster. Don’t let the tracking system for ecommerce orders create an unhappy customer.
Faster Returns Process
One of the major functions of a logistics service provider is improving your returns management process. A 3PL partner with expertise in this area can streamline the return process in order to make it easy and cost-effective for customers to return items. A fast returns process empowers and raises confidence in the customer that your company is competent with their purchases.
Top Logistics Service Providers
1. Product Fulfillment Solutions
Product Fulfillment Solutions is an expert in managing all phases of the supply chain cycle. They provide extensive customization options in every aspect of their operation to fit the needs of their partners. While other providers are reactive, Product Fulfillment Solutions takes a proactive approach. They take extra care to identify potential problems and resolve them beforethey happen.
With pricing for only the services a specific client will need, Product Fulfillment Solutions is the ideal 3PL partner to handle all logistical and supply-chain related needs.
2. Flexport
Flexport offers low-cost freight shipping by air, ocean, truck, or intermodal freight. Their cloud capabilities help make the logistical process more transparent for them and their clients. Flexport also offers their own expert team with insight and industry experience in order to help better manage their clients’ operations.
3. UPS
While being known as the largest international shipping carrier, UPS offers a surprisingly large variety of logistical services including:
- Warehousing
- Fulfillment services
- Freight shipping
They also provide product customization, packaging, and retail quality check solutions.
Partner With The Leading International Fulfillment Logistics Service Provider: Product Fulfillment Solutions
Ecommerce businesses across the world trust Product Fulfillment Solutions to handle their logistics for a few simple reasons:
- The right pricing
- They maximize efficiency and minimize cost
- PFS invests workflow studies to find your perfect logistical balance
- Hyper-responsive shipping
Product Fulfillment Solutions is the ultimate logistics service provider. If you want a trusted partner that treats your brand like it is their own, talk to Product Fulfillment Solutions.
Conclusion
The difference between scaling and growth versus stagnation and reactive decision making can be represented by your logistical operations. Being willing to trust a 3PL to handle all the supply chain operations of your eCommerce business can be worth the risk.
Product Fulfillment Solutions is a logistics service provider with the experience, mindset, and insight to provide your company with logistical solutions that help your business take the next step in its journey.
Logistics Service Providers FAQ
How Do I Choose A Logistics Service Provider?
Find a logistics partner that values your business as much as you do. The right partner will have the right mix of technology, experience, and industry insight to provide quality and efficient logistical solutions that are uniquely suited to their business.
What Is Logistics?
Logistics is a term generally referring to the processes of a business’s supply chain operations. Logistics include the lifecycle of an order, shipping, packaging, inventory management and storage, as well as order verification, processing, and shipping.
What Is A Third-Party Logistics Company?
A 3PL is a logistics company that handles a business’s logistical functions for them, for whatever the supply chain needs of their partner are. They ensure order accuracy and efficiency, as well as developing improved operational procedures for any logistical problem.
Want a personalized consultation to discover what 3PL solutions can do for your business? Contact PFS today!