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

Daniel Kasif|Nov 9, 2021|No Comment

What is 3PL Warehousing?

Third-party logistics (3PL) warehousing refers to outsourcing logistics procedures to an external business. Usually, the businesses that manage 3PL warehouses are logistics professionals or warehousing specialists. They can help you store your goods, offer pick & pack services, and 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 Your Business?

If you own an e-commerce 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 ensure 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 e-commerce 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, and 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 doorstep 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.

In conclusion, third-party fulfilment offers a range of benefits that can revolutionize your eCommerce operations. From inventory control and accelerated shipping times to flexible storage expenses and enhanced inventory protection, partnering with a reputable 3PL provider.

When should a small business consider 3PL?

Small businesses should consider using third-party logistics (3PL) services under several circumstances. Here are a few scenarios where it makes sense for a small business to consider utilizing 3PL:

Scalability and growth: If a small business is experiencing rapid growth or expects an increase in demand, partnering with a 3PL provider can offer the necessary infrastructure and resources to handle larger volumes of orders and shipments. This allows the business to focus on its core competencies while leaving the logistics and supply chain management to the experts.
Limited storage space: When storage capacity becomes a constraint, especially for businesses with limited warehouse or inventory space, 3PL providers offer warehousing and fulfilment solutions. They can store, manage, and distribute inventory efficiently, saving the business from investing in additional storage facilities.
Geographic reach: Small businesses looking to expand their market presence into new regions or countries can benefit from 3PL services. 3PL providers have established networks and expertise in various locations, enabling businesses to tap into their distribution channels and reach customers in new markets without the need for extensive logistics setup.
Cost-effectiveness: Outsourcing logistics functions to a 3PL provider can often lead to cost savings for small businesses. Instead of investing in infrastructure, technology, and staffing, businesses can leverage the economies of scale and expertise of a 3PL provider, reducing operational costs and improving overall efficiency.
Time and resource optimization: Managing logistics operations internally can be time-consuming and require significant resources. By partnering with a 3PL provider, small businesses can free up valuable time and resources to focus on core business activities such as product development, marketing, and customer service.

It is important for small businesses to evaluate their specific needs, growth plans, and budget constraints when considering 3PL services. Conducting a cost-benefit analysis and exploring different 3PL providers' offerings will help determine if outsourcing logistics is the right step for the business's success and growth.

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 mean you can remove the stress of understanding and deal 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 comprehensive warehousing and fulfilment services in Sydney!

TGL Warehouse:

Spacious 2000 sqm facility.
We offer 3PL warehousing.
E-commerce fulfilment.
Container unloading.
Different rack heights to suit the diverse needs of our clients, including multi-layer racks for E-commerce loose items.
Is fully covered by 19 cameras and has back-to-base security patrols in place.
We take pride in having our own fleet of trucks, and this provides us with a significant advantage in the logistics industry.

Our strategic location ensures fast and efficient delivery within the Sydney metropolitan area. We excel in e-commerce fulfilment, providing quick order processing and shipping. Our advanced warehouse management system, Carton Cloud, offers real-time stock management and visibility. Accuracy is our priority. We employ rigorous stock management practices and conduct strict cargo quality control inspections. Our tailored transport planning and accessible stock movement platform streamline operations. Integration is seamless with our API applications. Choose us for reliable warehousing and fulfilment services. Maximize efficiency, ensure customer satisfaction, and drive your business forward.

Contact TGL today to discuss your specific needs and let us elevate your logistics operations. Whether you need assistance moving a shipment internationally, or domestically or need someone to manage the whole process, our team of THINKERS would be happy to discuss it with you.

Already know what you need? Fill in our quote form and we will get back to you.

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