Fulfillment is one of the most critical aspects of your business operation. It doesn’t matter how good the rest of your customer experience is; if your fulfillment isn’t efficient, then you’re not going to have happy customers.
The problem is, the more your business grows, the more complicated fulfillment becomes. You’re dealing with more and more orders, you’ve got more stock you need to store, and you’re sending shipments all over the world.
Many businesses start off with a small on-site warehouse to be the center for their fulfillment operations but soon find they need something more scalable as their business starts to grow. As fulfillment becomes more complicated, many companies turn to 3rd party logistics warehouses to help drive their growth.
What is a 3rd Party Logistics (3PL) Warehouse?
3PLs provide businesses with logistics services to help them meet the demands of their customers. Not only do they offer warehouse space, but they can take over many aspects of your logistics, including receiving goods, labeling, shipping, and returns. These services offer great benefits for businesses who are looking to grow, helping them manage their fulfillment more efficiently and improve their offerings to customers.
Focus on the Things You’re Good At
Using 3PLs for your warehousing and fulfillment allows your business to focus on the things it does best. Your business is set up to sell products and offer excellent customer service; it isn’t necessarily set up to store products and send them out to customers.
When you’re using the best ecommerce 3pl, you know you’ve got experts looking after the logistics so you can put all your efforts into the areas where your expertise lie.
Many companies start off with their own warehouse but soon find that as their business grows, they need to expand. This is difficult because as you grow, you need to acquire more space in order to meet the needs of your customers.
When you use a 3PL, you have no such problems, though. You simply pay for the space you use, using more space when you need it, and less space when you don’t need it. Your growth is not limited by warehouse capacity, making your business more flexible and more capable of meeting demand.
3PLs allow you to have stock in lots of different locations. This can help with your distribution, bringing shipping costs down and allowing for faster fulfillment.
If your business owns its own warehouse, it’s going to be in one place, whereas 3PLs can have many warehouses across the world. By placing stock in multiple warehouses across the globe, you can expand your company’s reach.
Good 3PLs will have great inventory management systems you can link to, helping you to reduce inefficiencies. Keeping track of your inventory can be difficult when you have your own warehouse, but 3PLs can really help you with this. You will be working with warehouse experts who have years of experience in reducing inefficiencies and making sure that you get the most form your logistics.