Starting a business, especially an online store, can be very exciting. However, behind the scenes, you must figure out how to manage inventory, warehousing, packing, shipping, and customer returns.
As your business grows, handling every part of the fulfillment process internally may become expensive and time-consuming. This is where 3PL logistics companies come into play. Instead of handling everything from storage to order delivery, you can pass these tasks to a 3PL logistics partner.
Why Should New Entrepreneurs Consider 3PL Logistics?
So, why should new entrepreneurs consider using 3PL logistics services instead of handling everything in-house?
§ Scalability
One of the biggest reasons entrepreneurs consider 3PL logistics is scalability. As a small business owner, you can fulfill orders from a spare room, garage, small office, or rented storage space. However, this approach becomes increasingly difficult once orders start trickling in by the hundreds every day.
After some time, you will need to hire extra hands and lease more storage space, which can become costly. However, you can use a 3PL logistics provider to handle everything, from inventory management to order fulfillment and customer returns.
§ Potential Cost Savings
Operational costs accumulate over time, especially as your customer base grows. If you are handling order fulfillment in-house, these expenses can slowly eat into your business’s profits.
Outsourcing logistics and order fulfillment services does not automatically guarantee lower costs, but it can eliminate or reduce certain fixed expenses. A 3PL logistics partner consolidates many of these activities into a logistics service, cutting operational costs.
For instance, with a 3PL partner, you don’t have to pay storage or order delivery fees separately. Everything is covered in a package, which can be customized based on your business’s needs.
§ Faster Order Fulfillment
Professional 3PL logistics firms such as Packageman are built around standardized processes to help businesses process orders more quickly.
In today’s e-commerce setup, faster order fulfillment is non-negotiable. Partnering with a 3PL logistics company will allow you to compete with other bigger brands without overspending on last-mile delivery.
Moreover, faster order fulfillment contributes to a better customer experience, especially when customers get clear tracking information and reliable delivery times.
How to Choose a 3PL Logistics Provider
With the boom in the online shopping industry, many 3PL logistics companies have cropped up over the years. However, 3PL firms aren’t the same, meaning you must be careful when choosing one.
§ Evaluate the Service Catalog
The first thing you should check is what services the 3PL logistics company offers. We recommend partnering with a 3PL company with a diverse service catalog. With this, you will get most services from storage to handling customer returns.
§ Pricing
Pricing shouldn’t come down to who’s the cheapest. Instead, it should be a detailed evaluation of whose services are worth it. Start by requesting and comparing detailed quotes from multiple 3PL logistics firms.
§ Understand Customer Support
Logistics and order fulfillment can be challenging sometimes. Orders can be delayed, inventory can be misplaced, and shipments can sometimes be damaged.
As a result, you need a 3PL partner with the best customer support. Ask how quickly the provider responds to inquiries and whether they provide dedicated account managers for clients.
