Learn how 3PL can optimize the logistics of your business to boost growth and user satisfaction.
According to studies carried out by the Infosys Consulting Firm in North America, Asia and Europe, it was determined that 89% of 3PL users agree that outsourcing allowed them to improve their service and the satisfaction of their end customers thanks to the efficiency of their delivery process.
Los Outsourced Logistics Services, also known as 3PL O Third Party Logistics, offer comprehensive solutions for those businesses that need to focus on their areas of opportunity, but without neglecting aspects ranging from warehousing to the delivery of their products.
If you have an online store and are considering outsourcing services or want to know them more in depth, in this post we will tell you everything you need to know.
1. What is the 3PL?
Los 3PL services consists of delegating the operational part of an e-commerce to an external supplier, which uses its own infrastructure and advanced technology for the proper handling of orders from its own storage centers, thus ensuring delivery to the end customer.
2.Advantages of outsourcing 3PL services for ecommerce
By contracting these services, you can benefit in the following ways:
- Time savings and investment in infrastructure.
- Improvement in delivery times that will promote customer satisfaction, repurchases and an increase in their average order value (AOV).
- Inventory management by synchronizing it in real time, which will allow you to avoid stock-outs in the different distribution centers.
- Cheaper and more competitive shipping rates
- The dispatch of products from storage and distribution centers close to the user.
3. What are the activities carried out by a 3PL?
These are the key tasks offered by outsourced logistics services:
- Storage
- Stock control through a management system.
- Package preparation and management.
- Assorted and packaged.
- Dispatch of orders to their final destinations.
- Last mile, which in some cases, encompasses the handling of the final delivery to the customer, including tracking and traceability.
- Exchanges and returns.
With the release of the activities, companies will be able to breathe easy, much more so if they don't have the resources, knowledge, or experience to carry them out:Read also: Step by step of the fulfillment process advanced by suppliers (3PL)
4. Other Logistics Providers (PL)
Now that you know how 3PLs work, let's take a look at other services in the world of logistics so you can identify the one that best suits your ecommerce needs.
📦 1PL (First Party Logistics)
Basically, it is the online store that produces or sells the goods and manages its own logistics without outsourcing any part of the process. You maintain full control of your Storage and Inventory and outsources the transportation service to a supplier that has the fleet to carry out this operation.
📦 2PL (Second Party Logistics)
Not only are they in charge of transportation, they also take on tasks that correspond to the storage of e-commerce products; however, the work is not fully delegated, since the contractor is the one who coordinates the transport fleet and prepares orders in the warehouse before being dispatched.
📦 4PL (Fourth Party Logistics)
They do not cover the operational part, their work is aimed at achieving maximum efficiency throughout the supply chain through logistics advice in terms of planning, management and use of new technologies; it does not have physical assets for the storage or transport of packages.
📦 5PL (Fifth Party Logistics)
The suppliers combine the services offered by the 3PL and 4PL, carrying out a global management of the entire logistics process, in addition, they contemplate tasks of coordinating the supplies of a company for the manufacture of its products, that is, they intervene from the production process to delivery to the end customer and the after-sales service.
5. Is your ecommerce ready to hire 3PL services?
Reflect on these questions that we will list for you and evaluate if the 3PL is an alternative that your brand needs:
- Don't you have the necessary infrastructure for the efficient storage, preparation and distribution of your products?
- Does the time taken by the operational side prevent you from focusing on strategic business decisions?
- Do you already have more than 100 orders per month?
- Are you overtaken by the growth of your e-commerce and do you need help preparing shipments?
- Is your house or place no longer enough and you don't know where else to store your items?
- Would you like to have a strategic partner in fulfillment that takes care of your entire operation with quality and efficiency?
- Do you want to save on operating costs while optimizing your operation?
- Do you want to avoid high investment costs to have a first-rate operation?
If most of your answers were yes, the Outsourced Logistics Services are the best option for you, remember that every hour you spend doing operational tasks that you can delegate, you are losing the opportunity to focus on your core business, growing your business, developing new products and attracting more customers.
6. How to choose the best 3PL service provider for your ecommerce?
Here are the points you need to review:
⚡ Strength in ecommerce
- Specialization
Analyze what category it belongs to and investigate its responsiveness, as well as its operational processes to meet your delivery times. A visit to their warehouse can help.
- Competitive rates
It answers the question “How much does an operating month cost me?” , that way, you can validate all the charges you will incur and have an approximate value per piece shipped to make the comparison.
- No investment
In many cases, you'll be able to find a provider that doesn't ask you for initial investment to start operations, which speaks highly of him, because it means he'll be ready to work with you right away.
- No fixed costs
Ideally, they don't require any fixed expenses and everything is variable, depending on your sales levels.
⚡ Technology
- Integrations
Make sure it has a pre-made integration for your shopping cart (Shopify, VTEX, etc.), otherwise, it means that It is NOT dedicated to e-commerce and it's better to opt for another provider. There are some with a lack of technology that charge integration “fees”, in excess of 1000 USD, which is a sign that they are not specialists.
- Full visibility
Choose a company that gives you the level of visibility you need through a platform where you can view, for example, aspects such as order status, inventory in real time, how to collect tickets, reports and billing. This tool should also provide you with independence from your supplier to make decisions.
⚡ Good relationship
- In the long term
Verify that it is a legal and experienced company to which you can entrust your inventory and the management of your products.
- Test
In some cases, you can request a pilot test to validate the service.
- No Forced Ties
In the beginning, It is advisable not to sign any mandatory deadlines until you are comfortable with the relationship and the service.
- References from current customers
There is no one better to tell you about their experience than a current customer, asking for two or three introductions to tell you about their experience.
- Win-win ratio
Finally, we believe that the best relationship you can find is one where your growth objectives are aligned with the 3PL service they can offer you. Together they will grow hand in hand.
If your online store already handles more than 100 orders per month, have a service of Fulfillment in Guadalajara can help you optimize delivery times and save on operating costs, ensuring customer satisfaction and the sustainable growth of your business.
Conclusions
Choosing your 3PL service operator is, without a doubt, a decision that can boost or decline your online store; take your time, analyze all the variables and go for the right option.
Outsourcing the supply chain to focus on the core business is a trend that is increasingly rooted in Latin America and the world.
Work with a 3PL option such as Cubbo, will allow you to expand your reach and achieve the growth of your ecommerce in the short, medium and long term.
Sources of information: Custerlogistic / DVS / Beetrack / Shipbob / Mecalux / Soloistic / Barloworld / Shibob /Third Logistics Study carried out by the Infosys Consulting Firm.
