Benefits of using 3PL warehouse
February 19, 2020
Benefits of using 3PL warehouse
A 3PL warehouse helps you manage the storage of your products and the logistics of shipping those products to your customers. Avoid having to acquire or rent space, manage freight bookings, design delivery routes, organise storage requirements, retrieve stock in an organised manner and more. Engaging a third party with the expertise, technology and warehouse footprint offers flexibility and scalability for your business.
When you are looking to partner with an Australian 3PL service provider to support your e-commerce business, it is essential that any candidates can deliver the kind of service and value that will optimise your operations. Here are four benefits of using 3PL warehouse for your business. Make sure you consider these benefits as you review the features of each service provider.
You rent only the space you need and pay for the work you need
Avoid acquiring expensive real estate or renting an entire warehouse that you might not use. A 3PL provider offers you the amount of space that you need and charges you a service fee based on the number of transactions that are processed. This variable fee (based on usage) is tailored to your needs and stops you paying for services that you may never use.
A good 3PL can simply allocate labour and space as you need
Well-designed and innovative 3PL service providers have optimised inventory fulfilment management systems that allows you to minimise periodic costs. Depending on the volume of transactions that are processed, warehousing space and labour servicing will be adjusted accordingly. This means that you only pay for the services that need to occur to manage the inventory that needs to be fulfilled for your customers.
Experience in complying with routing, labelling, pacing requirements for big customer
Efficient inventory fulfilment ensures that your end customers receive the right products on time and at the least cost to you. Customers prefer convenience and businesses need to ensure that they can lower their delivery costs to gain valuable margin. A 3PL service provider can assist with distribution design, labelling of products and other order fulfilment services to effectively deliver products without error.
Dealing with variable volume due to seasons
3PL service providers understand that business demand and supply experiences seasonal fluctuations. To help you manage the costs of running your business, 3PL service providers can adjust the amount of services they provide to you when business conditions change. This can help to manage cashflow especially when demand is low, or products are being revised in anticipation of the new season. This flexible offering makes partnering with a 3PL provider ideal.
Frequently Asked Questions
Why do companies use 3PL?
3PL providers are in high demand because they offer superior order fulfillment and distributions services to help you scale your business and meet increasing customer demand. By adding value to your small or large business, 3PL services help businesses in Australia grow by allowing more orders to be fulfilled with accurate and quality product handling and delivery services.
What is the difference between 3PL and 4PL?
4PL is an extension of 3PL. While a 3PL service provider offers outsourced warehousing and logistics services, 4PL assists with the management of resources, technology, infrastructure and supply-chain design. 4PL provides additional consultancy services to assist businesses with supply-chain and inventory management optimisation through strategic operational enhancements.
What companies can use 3PL?
All companies can use 3PL. As supply chains becomes more complex, it is important that goods arrive on time at the least possible cost, every time. It is ideal for the retailer to limit their investment in logistics so that they can focus their time on developing and enhancing their operations and meeting customer expectations. Outsourcing logistics to a 3PL provider provides a guaranteed service, peace of mind and dedicated support staff.
Which is the best 3PL Warehouse service provider in Australia?
The best 3PL warehouse service provider in Australia offers an accessible warehouse, leading digital architecture, state-of-the-art distribution design and intelligent, accurate and timely updates. At eStore Logistics, we understand logistics and have an extensive distribution network along with a skilled team that know how to improve logistical operations for various businesses.