What is the Importance of 3PL in Today’s World?

Feb 08 2021 by Hock Cheong

Business growth means more profit, right? Well, it depends. If you properly manage your supply chain, it can help increase revenue. However, if it is the opposite, then expect your business to fall apart slowly. Customers will start complaining about delayed shipments, and it may negatively affect your reputation. Fortunately, you can improve your supply chain by partnering up with a third-party logistics provider. 

 

Your business can benefit from this partnership, especially in today’s world. We rely so heavily on technology to make processes more efficient. The same can be said for the supply chain management. You have to use advanced software applications to improve the communication between transport service providers, suppliers and freight companies. Although you may invest in such technologies, it is expensive to do so. Thus, it would be wise to rely on third-party logistics. They have the technology you need for your business. 

 

Here are some other ways they can help your business:  

 

  • Assembly & Kitting 

Assembling is one of the most troublesome things to handle as it requires time and more people. Assembling your products before shipping them out for retail display is a must if your business involves selling electronic parts. Now, logistics providers often provide assembling and kitting as part of their fulfilment services. It helps reduce the time for shipping, and at the same time, it will free up some space in your inventory. 

 

  • Online Business Expansions

Although the online space provides opportunities for entrepreneurs to expand their business, it is difficult to do so. It is challenging to track online orders from different places. A parcel may get lost in the middle of a delivery. Moreover, customers online are quite impatient. They expect to receive their orders as soon as possible. That is why you should have a logistics provider that has efficient lorry transport services. Not only will they ensure to deliver the items fast, but they will also make sure to keep your parcels in good condition. 

 

  • Upscale Inventory

Are you always stressed over seasonal inventories? Extra stocks seem to pile up all of sudden. There’s not enough space in the storage room. Although renting a warehouse would be a viable option, it wouldn’t be practical to do so as warehouses often require long-term contracts. To meet your fluctuating inventory needs, you should engage with a third-party logistics provider. They can take care of your inventory without incurring high storage costs. 

 

  • Innovative Strategies 

Building a sound relationship with a logistics provider is one way you can gain strong connections with various suppliers and shipping companies. With this, you can collaborate with them to come up with innovative strategies. Discuss how to address common logistics problems. 

 

To sum it up, your third-party logistics provider is more than someone who handles your shipping and warehouse needs. They help your business grow in more ways than one. From your supply chain management to your relationship with your suppliers, and transport service providers, they can handle them all for your company to grow. 

Are you looking for a reputable third-party logistics company? Check us out at Hock Cheong!

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