A 3rd party logistics company allows you to outsource your warehouse and distribution logistics to them. A professional 3rd party provider will handle all warehousing, picking and packing, distribution, and monitoring to meet your customer needs.
Why should I outsource logistics services?
There are many reasons why savvy business owners choose to outsource their logistics. Some of these include:
Reduced operating costs
Outsourcing to a 3rd party logistics provider can significantly reduce your costs of storage, transport, and staffing. Think of how many people you would need to hire to fulfill orders quickly and efficiently when your business begins to scale. Now imagine that instead of hiring these additional staff, you can outsource this for a fraction of the usual cost. By using a third-party logistics provider, you can also remain nimble and throttle your operation up or down with very little notice. This flexibility is simply not an option if you have regular or permanent staffing commitments to maintain.
Speed and efficiency
By utilising a 3rd party logistics company, your company can ensure that product fulfilment is processed rapidly and without unnecessary delays or bottlenecks. It is far more efficient to have your stock monitored and managed by one single system, especially when order volumes begin to accelerate.
Better customer outcomes
Having a dedicated and reliable logistics partner means that customer satisfaction can be more easily obtained. Once an order has been placed, it can be quickly located, packed, labelled, and shipped. This usually results in more consistent delivery outcomes and greater accuracy when it comes to fulfilment.
Less admin & office work
If you choose to tap a 3rd party logistics provider, there can be a significant reduction in the amount of paperwork and admin work that you would otherwise have to deal with. This can pave the way for you to gain back more time and have greater peace of mind, especially when all your logistics data can be centralised into one inventory management system.
Business is often changing at a fast pace and innovations in technology or distribution can have a major effect on your supply chain. By choosing a progressive 3rd party logistics partner, you can remain nimble in the marketplace. Whenever there is a change that you wish to adopt, you can liaise with your partner so you adjust your process when it makes sense to do so.
How to choose the right third party logistics provider?
With so many options to choose from, it is critical that you find the best 3rd party logistics provider to suit your needs.
Here are 6 criteria to help ensure you partner with the right company.
1. Track record
Do your research and find a logistics provider with a strong track record of assisting other similar business to your own. If they have been successful helping other businesses comparable to your own scale and grow, then they can do the same for you. Look for a provider with business case studies and positive testimonials and reviews online.
2. Look for the right team
Businesses are only as good as the people behind them. When you are choosing a 3rd party provider, be sure to find one with a strong and capable team. Ideally, you are looking for a balanced mix of customer, technical, strategic, and warehousing support staff.
3. Seek a provider that can scale with you
If you are hoping to achieve serious growth, then you need to find a provider than grow with you. You should be looking for a partner that has a sizeable warehouse that can handle your current order volume now but also in the coming years ahead. This will save you the hassle of having to switch providers in the future.
4. Customisable capability
It is critical that your existing software can integrate with the business system of the third-party warehouse. You should research this ahead of time and make thorough enquiries before signing up for their services. It is essential to choose a partner with the ability to seamlessly integrate their system with yours and offer customised solutions to meet future needs.
5. Safety & security
You should look for a reputable brand with a strong safety and compliance record. This is to ensure that the risk of product damages is minimised, and your goods are always kept safe and secure.
6. Online portal
Choose a 3rd party warehouse provider that uses modern software to track real-time movements of all your products. The best 3rd party logistics companies will also have software that enables a top-down view with all relevant statistics that report your stock volumes, order numbers, and costs. This will enable you to maintain a firm handle on your supply chain as your business grows.
As a 3pl specialist, Invenco can be your 3rd party logistics partner. Call us today so we can show you how we can assist you with all your eCommerce logistics needs.