If you’re running a business, you’ll know how challenging it can be to juggle everything from sales and marketing to logistics and delivery. That’s where 3PL comes in. But, you may be asking – what is 3PL? Third-party logistics, refers to outsourcing supply chain operations like warehousing, order fulfilment, and shipping to a specialist provider.
Companies like Lama Fulfilment step in to handle the tricky parts of your supply chain, giving you more time to focus on what you do best – running your business. In this article, we’ll explore everything you need to know about 3PL, how it works, and why it could be the perfect solution for your logistics needs.
Contents
- What is 3PL
- How do 3pl services work?
- Lama Fulfilment Smart Fulfilment
- Core competencies of successful 3PL companies
- Does your business need 3PL?
- What are the benefits of 3PL services?
- Are there any drawbacks to 3PL services?
- How to Choose the Right 3PL Provider
- The Future of 3PL
What is 3PL?
3PL (Third-Party Logistics) refers to outsourcing your logistics operations to an external provider like Lama Fulfilment. This can include everything from warehousing and inventory management to shipping and returns. Essentially, a 3PL company acts as your logistics partner, streamlining the flow of goods from your warehouse to your customers’ doorsteps. As a business owner, you have enough on your hands without worrying about shipping too – 3PL services allow you to alleviate some pressure, and leave this part to the professionals.
How Does 3PL Logistics Work?
3PL providers integrate with your existing business operations, and take over the final steps. For example, Lama Fulfilment connects with your e-commerce platforms, ensuring orders flow smoothly from your online store to our warehouse. Once an order is placed, we pick, pack, and ship it to your customer. And we can be there for the aftercare.
Each 3PL service works differently, depending on the needs of clients, size of their operations and much more. With many years of experience, Lama fulfilment has mastered a smart fulfilment process – a tried and tested 3PL service that adapts with the client.
How does the Lama 3PL Smart Fulfilment Process Work?
Lama’s specialised 3PL service, all the heavy lifting is taken care of. From integration to receiving, storing, picking, packing, and shipping your products, every step is handled with precision. As far as third party logistics companies go, Lama Fulfilment knows the score.
An advanced in-house integration and warehouse stock systems gives full control over the entire fulfilment journey, making it effortless for you and your customers. But, it doesn’t stop there – our 3PL customer service extends to managing returns and providing exceptional after-sales support.
Core Competencies of Successful Third Party Logistics Companies
A successful 3PL company will have all key necessities of a logistics company, plus added services to tailor to your business. Just like Lama Fulfilment’s smart fulfilment process.
Key Competencies:
- A fool proof integration system: Once you take the leap to work with a 3PL company, the distribution centre must integrate to your business and its marketplaces.
- Once all the inventory has been delivered to the warehouse space, product inventory levels should be tracked using a warehouse management system, keeping levels in check and mapped with SKUs.
- Orders will be faultlessly pick, packed and shipped with the most cost and time efficient packaging and shipping. Some third party logistics services, like Lama Fulfilment, will also over personalised or branded packaging. This keeps all your orders in line with your brand, keeping brand image control well within your hands.
- The best third party fulfilment services will have an operations dashboard for business to track orders, stock and other relevant shipping information.
- Finally, some 3PL services go the extra mile with returns management, reverse logistics and even customer services if you need it. No drama lama – find out more here.
Does Your Business Need 3PL Services?
When starting a new business, there are many big decisions to be made and you never know when the right time is to scale up and take the leap. Here’s when you should start to think about it:
An Increase in Customer Service Complaints
If your business is booming, your current in-house warehousing might not be able to keep up. And this leads to one thing: complaints. And complaints lead to a decrease in customer retention. If spikes in demand continue to increase, and your staff can’t keep up, it might be time to outsource your 3PL.
Growth Opportunities
Each business comes to a point when they must decide whether to take the leap. Is this your time? If there’s an increased demand for your product, and you’re looking to reach into new markets – it may be time to connect with third party logistics companies.
Orders and Products are Getting Lost
Smaller businesses with inhouse warehouses may not have the facilities or budgets for advanced software systems and warehouse management. This can lead to missing products, miscounted inventory and orders that never go out. These are all things that third party logistics companies, just like Lama Fulfilment, specialise in.
What Are the Benefits of 3PL Services?
Partnering with a third-party logistics provider like Lama Fulfilment brings a range of benefits:
Cost Savings
Outsourcing to a 3PL eliminates the need to invest in warehousing, staff, and equipment. Not to mention the cost of training; you’re a specialist in your field, you don’t need to be one in logistics too.
When partnering with a 3PL company, businesses can use distribution services only when they’re needed, thus controlling shipping costs more effectively. Third party logistics companies also have reduced costs with delivery partners through bulk orders, meaning you can pay less for your shipping. It’s a win win.
Scalability and Flexibility
With less pressure on you to handle logistics, there’s more time to invest in your business. Whether you’re scaling up for a seasonal rush or handling daily operations, third party logistics companies such as Lama Fulfilment can adapt to your business requirement and support your growth.
Expertise and Efficiency
With years of experience, Lama Fulfilment offers tried-and-tested processes that ensure your supply chain runs smoothly. We’ve spent years perfecting our 3PL services – don’t put your business through unnecessary trial and error.
Are There Any Drawbacks to 3PL Services?
While 3PL services are an excellent solution for many businesses, there are a few considerations to keep in mind:
Potential Loss of Direct Control
Partnering with a 3PL means entrusting some control of your logistics to an external provider. This may feel like putting your business – which you strived to build – in someone else’s hands. The key is to research, discuss, and work with a 3pl service that works with your brand. Many third party logistics companies like Lama Fulfilment
Costs for Small Businesses
If you’re a very small operation, 3PL services might seem like an added cost, which it may well be at first. However, in the long run, working with a 3PL company will be worth the initial cost to help you scale your business.
How to Choose the Right 3PL Provider
With third party logistics, you’re entrusting part of the success of your business to someone else. So, selecting the right third-party logistics company can make all the difference. Here’s how to ensure you’re making the right choice:
Understand Your Needs
Identify the specific logistics challenges your business faces. Are you struggling with order fulfilment, storage, or returns? Your business needs a 3PL company that will offer bespoke, tailored solutions that will bend with your business, not the other way around.
Check for Integrations
Ensure the 3PL provider integrates with your sales channels. Different third party logistics companies support different platforms such as including Amazon, eBay, and Shopify; your business needs one that handles them all – like Lama Fulfilment.
Review Reputation
Client success stories are the main tell of whether you should trust a 3PL company or not. Stats mean nothing if unhappy clients are hiding behind them. At Lama Fulfilment, we’re proud of our solid reputation for reliability and efficiency, with glowing client testimonials to back it up.
The Future of 3PL
The 3PL industry is evolving rapidly, with developments in ecommerce and logistics in general. Lama Fulfilment, of course, is at the forefront of these changes.
Technological Advancements
Automation, AI, and IoT are revolutionising logistics. Third party logistics companies are taking advantage of these advancements to streamline operations and improve operations dashboards.
Sustainability Trends
Eco-friendly practices are becoming essential in distribution. It’s becoming vital to prioritise more eco-friendly practices, reducing waste and using sustainable packaging wherever possible.
Now You’re in the Loop With Third Party Logistics
3PL services, like those offered by Lama Fulfilment, are the ultimate solution for businesses looking to simplify their logistics. By outsourcing to a trusted third-party logistics provider, you can save time, reduce costs, and focus on growing your business.
So, whether you’re new to the world of logistics or looking to optimise your operations, Lama Fulfilment is ready to help. Get in touch today to learn more about how we can support your business.
