Since the modern world will be more and more based on eCommerce, it is understood that it should expand with the help of outside providers and industries.
Therefore, if you wish to boost your efficiency, you need to find a third-party logistics provider that will handle services that include storing, taking, packing, and shipping your products based on your preferences.
Remember that shipping your products is a hassle that will make more money out of your pockets and reduce customer experience.
The simplest way to understand the different layers of logistics is by checking here for additional info.
Customers require effective shipping processes. Therefore, if you do not have experience in this particular industry, you will not be able to find the freight companies that come with a low price tag and many other factors that will make you inefficient when compared with competitors.
It is essential to understand everything about third-party logistics providers before you make up your mind.
What is a 3PL?
Similarly, as we have mentioned above, the third-party logistic provider is a company that will handle the services such as storing your inventory, packing the items and shipping them depending on the customers’ orders.
The Process of Finding a 3PL
You do not have to choose the most prominent figures in the world of logistics, such as Amazon FBA, and others that exist on the market. Instead, you should conduct research that will help you determine the one that comes with the best reviews and rates.
Remember that the process of creating logistics was a prominent business even before the eCommerce entered the minds of customers. Every single metropolitan area comes with a local logistics company that will handle anything you need for competitive prices.
Another essential consideration to know is that most companies act as old-school services. Therefore, they lack appealing websites, and some of them do not have them at all.
Of course, some people consider the online presence as a way to determine both trust and reliability, but that is not the general rule you should follow.
In the world of logistics trends are changing, which is why you should enter this site: https://www.huffpost.com/entry/key-trends-shaping-the-th_b_8774778 to check the latest ones.
They tend to exist in two different forms, including:
- Large 3PL – They tend to have more than ten employees, and you should get them due to reliable and efficient services you will get. Generally, they can handle your shipments during the peak and seasonal dates such as Christmas or Black Friday, which is something that small ones cannot control. In case you need to ship the entire forty feet container at the last minute, they will be able to handle it in a matter of hours. However, since they have plenty of assignments and tasks, they will consider your products like a bar code. Therefore, based on what you need, they will have high standards when it comes to protection, but we recommend you to clarify whether they should be careful with your products or not.
- Small 3PL – On the other hand, if you wish to create a relationship that is more meaningful with the provider similarly as if you would have an in-house logistic team, you should get a small provider instead. The idea is that they will know how to care about your products and check whether everything is safe before you send it to your best customers, you can rest assured. Of course, small providers have some disadvantages, including the inability to handle large quantities and capacities. Still, if you are a startup, we recommend you use a small one and to use large only when you reach that level. Another issue is shipping during the significant dates and holidays such as Christmas or Black Friday because they may get other orders as well, which will make them overstocked when compared with large providers.
It does not matter whether you should choose a small or large 3PL provider because you should consider the tax obligations that may affect your reputation.
Generally, we recommend you to find the provider closest to your business so that you can avoid the inventory issues that may happen.
That way, you can always make a reroute to check out the stock you created, which is not something you can do if you stock your products a thousand miles away.
The idea is to examine the inventory from time to time to let them know that you care about everything, especially if you are paying for that particular service.
Therefore, it is much better to get a provider that has a warehouse that is close to your current business location, because that will ultimately help you improve your efficiency and control them better than others.