What is 3PL(Third Party Logistics) and How can it help to benefit your business

Increasing customer base and generating ROI can be a nightmare for business entrepreneurs.

Whether your a small business owner or large entrepreneur, every day a new challenge will be encountered. It can be associated with website traffic, new locations and more. For a few businesses, meeting these challenges in a budget can be overhead.

Therefore to overcome these challenges entrepreneurs are thinking out of the box. Have you ever heard about 3PL? Many times right!!! 3PL provider helps to implement the magnifying functions that business require to growth. Logistic work perfectly chooses the perfect third-party partner to help your business. This is where 3PL comes into the picture.

Considering the e-commerce industry, business entrepreneurs are concentrating on customer’s demands. Once the order has been placed by a customer. The next step they proceed to is shipment information. Whether they are on the way to home or working at the office, they constantly track the shipment update.

It’s no secret the companies who offer one-day shipping have a major advantage among niche competitors in the market. As every day, new technology has been introduced to the world, and the world really wants businesses to be flexible, fast and convenient.

Why 3PL logistics is important?

The ultimate goal for every business is customer satisfaction!!! But million-dollar question is – How can you satisfy your customer? The answer is simple!!! Just provide quality products, fast shipment and other factors. Concentrate on these factors and make your customers happy.

But handling everything by themselves can be a daunting task for business owners.

3PL logistics can save your time and efforts. Bundle of unwanted tasks will be taken care of by logistic providers. Simply put, 3PLs acts like a mediator between the company and product shipping. You don’t need to worry about infrastructure, information, equipment, systems to complete the shipment procedure.

Sit back and relax, 3PL service providers will take care of the entire logistic process right from product packaging to product delivery.

What are the different types of 3PL providers?

There are four types of 3PL providers

  1. Transportation
  2. Contract warehousing
  3. Distribution management
  4. Freight consolidation (shipping and receiving)

Size and specialization do matter. There are few 3PL providers that lack the native complete set of service functionalities. But, top established 3PLs can provide end-to-end execution procedure and integrate seamlessly. Depending upon your company goals and requirement, select the best 3PL to grow your business.

Benefits of using 3PLs

Gain expertise and knowledge

It’s a known fact supply chain logistics are complex. Few challenges can be fulfilment, warehousing, information and shipping.

While considering supply chain logistics, 3PL providers will work perfectly. These organizations provide 24×7 assistance with a professional team. These can impart your clients and customers with their experience and also a connection in order to streamline the process in a quick way.

On the other hand, 3PLs will work perfectly on international shipment. Because these types of shipping involves documentation, guidelines, customs and other regulations. The best thing about approaching 3PLs is to relieve you from stress while handling international shipments.


The major advantage of using 3PL solution to manage logistics right from warehousing to distribution. Every process is cost-saving through 3PL. For example, you don’t need to have a warehouse or a team to handle supply chain operations.

Besides, 3PLs providers can work with companies proactively and be aware of major or minor mistakes on a supply chain that can be costly or risky. Start integrating industry forecasting, 3PL providers can optimize inventory levels. Also, save on inventory holding prices.

Save time

Hiring an employee can be a time-consuming task for any business entrepreneur. On the other hand, handling employee on the floor can be a daunting task. An entrepreneur needs to take care of everything about the employee – transportation to training. Employees should travel from different locations. Also, depending upon the designation the training period varies. Every process can be complex and time-consuming.

Business doesn’t want to invest their time and effort on warehouse space, latest technology, employee transportation and training. While integrating 3PL provider can save your time. 

A 3PL allows a business to focus on key competencies such as delivering a product on time for customers. It’s no secret customers get highly influenced by shipping cost and speed. Also, these two factors can choose the customers where to purchase the product. 3PL providers can provide a competitive delivery time and shipment cost.

Scale operations and adapts the latest technology

As per the analysis, 70% of companies can scale every operation effectively using 3PL. When a business works with 3PL, they can scale almost everything such as office space, labour cost, manufacturers, devices and transportation as per current inventory. Also, a 3PL service provider can make the process easy between seasonal period and business fluctuations.

Everything has been digitalized right from viewing the product to paying the bill. Using 3PL service providers can make your process effectively by implementing quality technologies. Therefore your internal business processes can help realise effectiveness with the business management of inventory and improve overall on-time performance.

More resources

It’s an open secret 3PL service have a wider resource network when compared to in-house supply chains. While using large resource network can work efficiently and effectively in every level of logistic procedure. This improved resources on the network can provide your 3PL provider to optimise every process of your supply chain. Errors can be easily handled and complete service process can work faster.