The Supply Chain and 3PL: Why Do They Rely on Each Other?

Apr 16 2021 by Hock Cheong

Logistic services


Managing a business is easier said than done. Even though it gives you a  rewarding feeling of doing everything by yourself, it could take a toll on your assets and mental capacity. 


The good news is that there are now logistic services that could give you a hand. They are also known as 3PL, a third-party logistics that could carry away your logistic load.


As you already know, proper supply chain management is the key to a successful company. Not only you would have to get raw materials and manufacture the product, but you also need to deliver the finished goods to customers.


While it might seem easy, the whole process is rather complex. You would have to deal with several service providers, and you could encounter problems in each one of them. Of course, that could cost you time and money in resolving the issue. No wonders why businesses rely on logistic services in handling and delivering their products to their customers


If you are thinking about relying on one, you need to know why companies rely on logistic services, vice versa.


Why Companies Rely on Logistic Services, Vice Versa?


1. Expands Customer Base

A company might have been thriving well in the local scene. However, would it be better to shine both locally and internationally? In such a case, a company would have more customers, letting them earn much more profit!


This idea seems incredible, but how would a company send off orders from the other side of the world? The answer is through logistic services.


Even though a company does not have a complex supply chain management, outsourcing to logistic services takes away its burdensome tasks.


What the logistic services got in return is to let other companies know about the services they offer. They manage to do that when delivering orders on behalf of their clients.


One of the services they offer is LCL shipment. This service is about allowing a company to pay for enough space they need for their goods rather than paying for the entire truck. In other words, availing LCL shipment allows them to save more money.


2. Manage Returns Products

Most often than not, people change their mind at the last minute. Sometimes, the product is to blame, while the rest, the customer, prefers something else.


In any way, a company accepts returns to maintain good relationships with its customers. Logistic services know that, and they deal with this matter depending on the reason for return. In case of damage during delivery, they will take liability for compensating their client and ask for pardon to the recipient.


3. Prevent Long-Term Leases

Another reason to rely on logistic services is their warehousing in Malaysia. It has flexible pricing that a company could rent a space for their goods if their demand grows. As a result, they would not need to get separate storage and later transport the products where their office is and have them delivered.


That saves the company time, effort, and money looking for a storage facility to store their products. Moreover, that company would still have overall control of the logistic processes.


4. Offers Better Customer Service

Ever since the pandemic came to exist, the demand for logistics services increased. As such, people now expect to get their orders within the day or the day that follows. Due to that change, 3PL now offers this type of service. Thus, companies are now more fond of hiring logistic services to handle the orders of their customers.


5. No Labour Cost

Since the logistics services manage to package, deliver, and accept return products, companies do not need to hire labourers to monitor the logistic processes.


What the 3PL gets in return is promoting their services to the customers of their clients for free. In other words,  both of them do not need to pay for additional labour cost because of the benefit they gained.


The Bottom Line

Logistic services help businesses expand and reach out more to their customers, and when they do, logistic services grow along with them. That is the primary reason why they both rely on each other. Through their teamwork, many people would receive their orders on time.


Therefore, would you still hesitate not to rely on logistic services like us? If you need such help, then reach out to our warehousing in Malaysia. Contact us, Hock Cheong, at either +603-77810040 or +603-77842288. You can rest assured that we would answer your call and help you deliver quality service to your customers!

Start Delivering with HC today!

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