What are Third party logistics?
3PLs enable eCommerce businesses to use their warehouses and distribution networks. This helps to get the sellers’ products to the customers more quickly and efficiently. We’ve seen so much advancement and IT innovation among 3PLs. The advancement in this particular section of the supply chain can certainly help eCommerce businesses a lot in their expansion plans.
Key benefits of using third party logistics
Firstly, 3PLs are not only for larger businesses. Any smaller business can effectively utilise them. I set out below some pointers to help you to understand this:
- you can now easily expand your business without spending time and much needed money on warehousing, staffing, heat,light etc.
- many providers now offer various aspects of the supply chain. So you are not limited to the above. You can also get help in inventory management, packaging and shipping.
- they can even support end to end in the sales process. That means a full supply chain support. Starting from your manufacturers to end consumers.
- these companies have far better bargain position than a smaller business. When it comes to dealing with shipping companies, they can get better rates.
- they are most likely to have higher level of skills in supply chain.
- many providers are now using very advanced systems and integrated cloud based platforms. These provide the sellers very up to date information about the inventory levels and delivery turnaround times.
- all of the above means faster delivery to your customers, faster response to demand and customer satisfaction.
The above short summary has been produced with the sole purposes of helping online sellers and eCommerce start ups in their respective business expansions.
If you need help in any aspects of your eCommerce business, please feel free to contact us here
ERAA Consulting Limited provides accountancy, booking and tax support for online sellers.