Third-Party Logistics Defined

Third-Party Logistics, often abbreviated 3PL, are all about the supply chain process. Companies of all sizes that don’t have the time or expertise amongst staff to handle their own product shipping often hire off-site 3PL providers to take care of it for them. Still, there are many different components to the logistic process, and not every 3PL partner offers the same services. Let’s take a closer look at the factors involved.Services AvailableThird-party logistics companies vary in what they can do. Some focus on huge quantities of times, dealing mostly with pallets full of merchandise rather than single items. Others pride themselves on hand-picking each SKU before shipping it to the consumer. There are plenty of stops along that spectrum, including these services:

• Handling transportation from the source to the warehouse
• Breaking down large containers and storing the smaller units
• Picking items included on an order and packing them
• Forecasting inventory needs and ordering accordingly from the manufacturer
• Order fulfillment in which items are sent directly to the end user
• Offering packaging and packing large items for shipping

Benefits of 3PLMost business owners and employees are not experts in shipping logistics and supply chains. There are many benefits to hiring an expert to handle this aspect of the company’s operations:

• Employees can focus on the job they are being paid to do instead of worry about getting the best postage rates and finding cardboard boxes.
• 3PL providers can wrangle both domestic and international shipping regulations.
• Businesses who don’t own giant warehouses and don’t want an in-house shipping department can save money by hiring professionals who specialize in these things.
• Companies can work with their 3PL provider to fine-tune the shipping process based on its specific needs. For example, if the business sells perishable items, it can set particular requirements for the 3PL company to follow.

Special ConsiderationsWhen choosing a third-party logistics company, businesses owners should be mindful of its warehouse location. If products need to be inspected or if items are getting damaged during shipping, it is difficult to visit a warehouse that’s in another state, so choose a partner wisely. Make sure your 3PL provider is reputable and comprehensive in their approach.Also, companies that are likely to increase their shipping needs by large leaps over the next few years will want to focus on 3PL partners that will be able to accommodate this growth.SureShip offers a wide range of services and is happy to explain all the options to companies that are considering a 3PL partner. Give SureShip a call today to find out more.