Many small businesses often don’t consider the breadth of benefits of using a backend service such as an order fulfilment (3PL) or warehousing company to run their logistics and generally support their business.
What is a Third Party Logistics Provider (3PL)?
A third party logistics provider (3PL) is a company who manages inventory throughout the supply chain. They are required to control delivery, pick, pack, ship and ultimately take control over the fulfilment of your customers’ orders.
Which eCommerce business owners may require a 3PL provider?
There are many eCommerce business owners which may require a 3PL provider to take control of their inventory and order fulfilment; here are some of the main reasons why:
- If You Require Logistic Expertise
This is a key aspect of what 3PL providers can bring to a business, these companies are flooded with logistic experience and knowledge where they will be able to fulfil and control your inventory on a day to day basis.
- To Save Labour Time and Money on Hiring Employees
Hours of crucial labour time can simply be saved by using an order fulfilment company to manage your inventory and orders. This therefore means you can put more hours into developing your product or service, enhance your marketing and ultimately build your customer list and overall business profile.
With you not hiring your own employees, you can use this saved money to pump and invest into your growing business. Order fulfilment centres will manage all of your inventory from the moment they receive it, to the second the delivery truck leaves with your customers’ parcels.
- Cheaper than Renting a Warehouse Yourself
A reassuring reason of why many businesses use 3PL providers instead of renting their own warehouses is due to it being much cheaper for you. As well as saving your money on labour time and employees (as above), they really can be a key solution to driving your business, as well as importantly saving you the time you need to develop your product/service as one example.
- Businesses on the Side
Many individuals often run a small business on the side which therefore requires the need for owners to need a third party provider to organise their inventory and run their logistics. This would free more time so you can focus on what matters and gain a good balance between your job and side business.
- Small Business Owners who hold their Inventory in their Home
Simply hiring a small 3PL provider to take care of your inventory and order fulfilment in a safe and secure warehouse may result in a number of benefits for yourself and your business!
– Your business inventory would be stored in a logistical fashion, where items can be located quickly to ensure customers can receive their orders sooner.
– Valuable space in your home would be freed, giving you more opportunity to focus carefully on the different areas to your business without you worrying about packing and sending orders yourself.
4 Solutions Which New/Small Order Fulfilment and Warehousing Companies Are Providing
There is an array of solutions which new fulfilment companies are providing to cater for small businesses who may need a little helping hand!
- Individuals have recognised the importance of catering for small businesses. They have importantly considered how to manage and logistically operate for a wide range small business types (home, garden, appliance, electronics, clothing and recreation as some examples).
- Secondary solutions regard how they have been able to create specific pricing plans and contracts to suit each individual business need in terms of how much they store, or the type of product it is!
- Providing a personal business support service is also a modern addition to what new 3PL companies have been able to introduce. Examples of their personal support service include website design advice, product advice, customer service assistance and fundamental suggestions to increasing your sales.
- They have finally been able to crucially understand how to not marginalise companies depending on their size, as small 3PL providers can relate on a closer level with small businesses – therefore providing enhanced contact time to share ideas and innovations together!
The aspects above certainly provide evidence of how fresh logistic services have been able to understand and cater for the needs of current businesses in order to support their successes.