90% of Fortune 500 companies opt to outsource their logistics to third-party (3PL) providers…

From cutting down on shipping costs to simplifying shipping processes - Let’s have a look at how partnering with a 3PL can benefit your business..

What is 3PL?

Third Party Logistics involves the outsourcing of some or all of the services that make up a logistics supply chain. 

From warehousing and inventory management to order fulfillment - distributions - exchanges and even returns, A 3PL company essentially acts as an eCommerce fulfillment company - handling the intricate aspects of your logistics - so that you don’t have to.

Six Benefits of Partnering with a 3PL Provider

Besides the obvious benefit of allowing you to focus on other important aspects of your business (like marketing and growth) - while your shipping is being taken care of by an experienced logistics team - Opting to partner with a 3PL Provider brings many advantages…

1. Cost Savings:

One of the most notable benefits of outsourcing your logistics to a third party company is that they are able to help you save on shipping costs. 

• Transportation Savings - 3PL providers are able to negotiate the best pricing and rates with carriers by leveraging their collective order volumes and order frequencies.

• Infrastructure Investments - A 3PL supply chain management company is able to provide warehousing space together with the staffing, tracking technology and infrastructure needed for the streamlined processing of your shipments.

• Managing Logistical Issues and Eliminating Costly Errors - Working together with a 3PL partner will help you manage and avoid any logistical issues or costly errors, providing your business with the flexibility to invest in other important areas of operations.

2. Integrations with Ecommerce Platforms:

The best 3PL partners are able to seamlessly integrate with multiple sales platforms or create custom API’s in order to support all your sales channels. Providing you with the ability to view and track the progress of your orders and shipments - in real time.

These integrations can be used to further streamline and optimise your shipping process through;

• The above mentioned ‘Real-time Order Tracking’
• Data Analysis and Reporting Tools
• Transportation Management Systems (TMS)
• Freight Auditing and Payment Solutions
• Route and Consolidation Optimization Tools

3. International logistics: 

It can be complicated trying to navigate the rules and regulations involving customs in different countries. This is where third party logistics companies come into play…

These companies use their expertise as well as their vast resource network to simplify the process. They take care of your documentation as well as handle any border-related issues that could otherwise result in high costs and delayed shipments.

Making use of a logistics partner when shipping internationally will allow your business to expand into new markets - without the risk of investing in local warehousing and staffing.

4. Scalability:

Partnering with a third party logistics company will provide your business with the flexibility to use resources (transportation, labour or space) based on your current needs. This can be extremely useful in terms of managing peak seasons or sudden increases in demand - without the need for large capital outlays.

5. Risk Mitigation:

Working together with a 3PL company can be extremely beneficial when it comes to dealing with delays or other unforeseen issues within the supply chain. 

As logistics is their core business, these companies have the experience and knowledge needed to correctly handle any delays or damages to goods. And not only will they be responsible for finding alternative solutions - your 3PL provider will also ensure your goods are insured against any loss or damages.

6. Allow You to Focus On Other Important Tasks:

Outsourcing your logistics eliminates the need to invest in internal resources and logistics personnel who would need to oversee your day-to-day transportations.

A 3PL partner has the expertise to take care of all the nitty gritty aspects of your shipping - freeing up your time to focus on other core aspects of your business.

Tasks Taken off Your Plate By Your 3PL:

• Billing & Paperwork
• Order Tracking
• Issue Managements
• Driver Communications
• Pick-up & Delivery Scheduling
• Identifying & Booking the Best Service Provider
• Identifying & Booking the Right Transport Modes
• Performance Reporting

Put simply outsourcing components or all of your logistics requirements to reliable and knowledgeable partners gives you more time to focus on the core aspects of your business.

Contact us at InXpress Sandton -  We’re here to simplify your shipping! 

InXpress Sandton - Providing you with the best rates from the best carriers - And ensuring your parcels arrive On Time - Every Time