Why Are Top Retail Brands Looking For Top 3Pl Warehouse Companies?by Tyler P. A Passionate Blogger - Entertainment
The third-party logistics industry, or the '3PL' as they're commonly known, serve as the backbone for global retail. Teaming up with a 3PL means that a retail company doesn't have to worry about supply chain operations or logistical responsibilities anymore. From transporting company products directly to customers to offering shipping services to B2B businesses – major 3PL companies provide all types of logistics services.
Understanding the Increase in Demand
Top retail companies are looking for Top 3Pl Warehouse Companies because of the value-added service these experts offer. Some of them include –
· Inventory management
· Packing goods
· Postponement packaging
· Assembling goods
· Direct shipments to customers
The global 3PL market size was reported to be worth USD 830.99 billion in 2019. The flourishing growth of the e-commerce industry has also contributed to this increase in demand. The need for faultless inventory management services is increasing every day. If retail companies want to enjoy dynamic growth, they must team up with 3PLs.
Understanding Modern-Day 3PLs
The modern-day 3PLs look over many supply chain responsibilities. In the past, these companies were considered mere transportation experts. Now, retail companies depend on 3PLs to meet their core business goals. For instance, if a retail company promises one-week deliveries, it's 3PL partner must fulfil this promise. Hence, entire retail sales models are based on the services of these experts. The key services that modern-day 3PLs offer include -
Receiving, Picking, and Packing Goods
3PL companies have access to large warehouses where they receive their client's inventory.
To ensure inbound shipments don't hamper their supply chains, they invest in stock prediction and tracking tools.
These experts also pick up direct orders from customers. For instance, as soon as a B2B seller makes a sale, the order is submitted, and the product is sent from the warehouse where it was being stored to the customer.
Before completing the order, the 3PL experts ensure the products are secure by packing them.
Shipping and Returns
3PLs spend heavily to improve their shipping fulfillment rates. They attempt to reduce shipping cutoff times with each delivery. Their efficient shipping strategies save sellers a lot on shipping costs. These companies are also open to taking returns in case a product gets damaged during transit. The services 3PLs provide are insured, so sellers don't have to take any responsibility for these damages.
Third-party logistic companies who offer cross-docking pick up the manufacturer's supplies and distribute them directly to customers. E-commerce businesses benefit a lot from teaming up with Cross Docking Logistics Companies.
Cross-docking eliminates the need for retailers to invest in storage. All orders on inbound trucks are unloaded and reloaded on outbound trucks on the spot. Top 3PLs have wide distribution networks. These companies administer numerous delivery trucks at the same time.
Online vendors who team up with cross-docking logistic companies can use this vast network to increase their sales. Thanks to their 3PL partners, they can advertise improved delivery capabilities (e.g., offer two-day deliveries or free shipping) and make more sales.
Other services offered by top 3PL companies include - inventory management, business-to-business fulfillment (B2B or B2R), and business-to-consumer fulfillment (B2C). 86% of Fortune 500 companies already depend on 3PLs for logistical support. The quality and comprehensiveness of their services make them so coveted for retail companies.
Created on Oct 3rd 2020 00:23. Viewed 77 times.