3PL Guide 2021: What is Third Party Logistics?

3PL Guide 2021: What is Third Party Logistics?

Making customers happy is a major goal for every company, from a huge eCommerce firm to one that is just getting off the ground, and nothing makes a customer happier than swift and effective delivery. The cornerstone of any business operation is getting things into customers' hands in a timely and cost-effective manner. However, as your company grows, controlling that supply chain gets more complicated and costly. You'll need to broaden your order fulfilment strategy at this stage, which for many organisations means outsourcing fulfilment of orders to a 3PL firm.

 

What is 3PL?

What is 3PL?This is the process of selecting, configuring, and managing fulfilment service providers. You may be familiar with traditional supply chains management software such as SAP systems or Major League Supplies' solution. These companies use mobile apps to allow employees to access vital information such as order status and shipment tracking directly from their smartphones. This eliminates human error from lost or delayed shipments during peak shipping times when computers aren't available due to an emergency or other reasons. It aims to provide an integrated platform that improves efficiency across the full supply chain from raw material sourcing to distribution.

This company provides multiple solutions to fulfill the needs of its clients. In terms of functionality, it offers a complete solution for the fulfilment of parcels/items, package shipment, general commercial shipments (but not including personal deliveries), and custom packaging solutions for manufacturers.

How Does 3PL Work?

Typically, when your company is ready to deliver a hefty supply of items out to customers, here are the processes that come into play:
• Receiving
Your company's merchandise will be received and stored by the warehouse before shipping to a consumer. The Logistics company will need to coordinate inbound shipments with your own company. This action is carried out by an employee who will also assist in managing and organising bulk shipments from the manufacturer to the distribution centre.
• Picking
The next phase of the fulfilment process is picking, which occurs after a buyer placed an order. An order is routed to a warehouse or fulfilment centre where the seller's inventory is housed. The location of the products in the order is taken note of, and the products are then selected individually to be shipped. 
Some logistic firm demand that you manually enter orders into their system. Spreadsheets containing order details, clients' shipping information, and other information are sometimes used. 
• Packing
The products in an order are arranged and readied for packaging once it has been "picked." During this stage, they will work with the seller to determine the best method of packaging the goods to ensure that the seller's products are secure, presentable, and packed in the most cost-effective manner. The style of packaging you want to employ will be determined by the capabilities of your delivery agency, your brand preferences, and your items.
• Shipping
After packing, the next step is dispatch. The majority of delivery organisation will provide you with printed shipping labels. If you want to save money on shipping, speedy delivery and improve the whole experience for the client receiving the goods, a seasoned logistic firm can put out a clear shipping strategy. Ensure the shipping company provides you with the most affordable pricing for the delivery speed you're looking for. 

Need 3PL Services?Need 3PL Services?

3PL companies like AMS specialise in managing the storage and distribution of goods for businesses. This logistics company provides a competitive advantage to retailers who ship to their customers with short lead times. Coupled with a relentless emphasis on operational excellence, American Manufacturing Solutions offers a flexible one-stop comprehensive solution for companies with high volume logistics requirements. Contact Us Today!