What is 3PL warehousing and how it could benefit your business?

Milad Nabi|Nov 9, 2021|No Comment

TGL Warehousing

What is 3PL Warehousing? 

Third-party logistics (3PL) warehousing refers to outsourcing logistics procedures to an external business. Usually, the business that manages 3PL warehouses are logistics professionals or warehousing specialists. They can help you store your goods, offer pick & pack services, improve order fulfilment and inventory accuracy. After an evaluation of your business situation, 3PL can provide a solution to your specific needs and increase the efficiency of your organisation. Managing your logistics through a freight forwarder with their own warehouse provides a convenient and cost-effective way to manage your supply chain. Let’s learn more about how it could benefit you. 

How 3PL Warehousing Could Benefit You 

If you own an ecommerce business or start-up, you probably already know how time consuming and challenging it is to manage the supply and delivery of your goods. Getting on top of your logistics is crucial for your business to break into the market and establish a framework for future growth.  

Time saving logistics methods ensures your customers will receive the right product in a timely manner while cost-efficiency allows you to lower delivery costs. Outsourcing 3PL can bring a multitude of benefits and leave you with more time to focus on the operational, financial and customer service aspects of your business.  

Time Saving  

The nature of ecommerce in today’s society is described in two words: Fast & Affordable. Customers in this space expect fast and affordable shipping at the click of a button. The ability to also store your products in close proximity to key consumer markets or retailers prevents unnecessary delays to the end consumer.  

Partnering with 3PL warehousing services can also save you a great deal of time due to their extensive logistics knowledge and expertise. Solutions Specialists, like those at TGL, can manage the entire supply chain movement process for your business, so you don’t have to learn and understand the logistical nuances. Their insight into the logistics industry, network of partners and experience moving shipments will also save you stress from unexpected shipping issues such as delays, hidden costs and alternative routes.  

Cost Reducing 

3PL Warehousing greatly minimises overhead costs and gives you the freedom to invest in other key areas of your business. Logistics partners offering this service will have pre-established processes, staff, equipment so you can just "drag & drop" yourself into their mix.

Think with me for a second... If you were to set up your own warehouse, you would need infrastructure, inventory management systems, physical warehouse space, security, experienced workers, equipment... the list goes on. With 3PL Warehousing, you would only pay for the services that you need and the time it takes someone else to do it. Outsourcing your logistics through a partner such as a freight forwarder, would also take care of your international movements. Through utilising their exclusive relationships with overseas partners, freight forwarders are able to source competitive costings and handle the movements of your shipment until it reaches your door step or their warehouse facility. 

Picking and Packing 

3PL warehouses can also provide a picking and packing service to prepare your products to be delivered to retailers or directly to the end consumer. Picking involves gathering the individual components ordered off the warehouse shelf. They are then packed into boxes and prepared for shipment. Picking and packing can be extremely time consuming, especially for businesses that offer a multitude of products. 3PL warehousing can provide a safe and fast service to ensure your products get delivered without any damage.  

Scale Up or Down as Needed 

Having an established connection to a 3PL Warehousing partner can help your business easily scale up or down. As your business fluctuates depending on demand throughout the year, warehousing and transportation become even more important. For example, an online summer footwear label would increase stock as their consumer demand grows for Black Friday and Holiday Season, but their demand would plateau during the winter months. Growing demand means an increase in on-hand inventory to fulfil your orders and somewhere to store it. 3PL providers can adapt to your needs without you having to commit to a large investment space. They can also aid growth into new regions and offer an opportunity to trial the market before investing in your own distribution facility.  

How to Choose the Best 3PL Provider 

From all the benefits discussed, 3PL Warehousing may seem like the service your business needs. The advantages of outsourcing your logistics and warehousing means you can remove the stress of understanding and dealing with logistics and focus your time on more important aspects of your business.  Harnessing the power of a freight forwarder or logistics company, will allow you to be in contact with an account manager to discuss your new or existing shipments, but then they handle the rest.

When choosing a logistics partner to handle your shipping or warehousing needs, it is important to find a company that you can trust, offer easy to understand pricing (especially important if your new to the game), provide excellent customer service and maintain a high level of customer satisfaction. These are all crucial as ultimately, the aim of 3PL warehousing is to ensure you as a business owner can focus on the most important parts of your business.

3PL Warehousing with TGL 

At TGL, we offer a complete 3PL and warehousing service including order fulfilment, inventory management and storage to suit your needs. Our warehouse is located in Revesby, Sydney Australia and is secured and equipped with the latest technology. The storage facility is monitored by our expertly trained staff who's skills and expertise will guarantee an efficient and excellent service. Our warehousing staff along with dedicated Solutions Specialists can provide a tailored service to assist with all your warehousing and logistics needs. Whether you need assistance moving a shipment internationally, domestically or need someone to manage the whole process, our team of THINKERS would be happy to discuss with you.

Contact us today to see how we can assist your business on 1800 845 845 or sales@tgl.co   

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