As your business continues to thrive and grow, it is likely to be delivering more products and introducing new innovations to the market. Eventually, it may become challenging for you to handle all operations in the house. In that case, it need to work with a 3PL for startups to help with the shipping and fulfillment activities in order to meet customer demand.
What is 3PL?
“3PL” stands for ‘third party logistics’. The service encompasses logistics support and services for all or some of your shipping operations. With 3PL services, startups might find it easier to focus on core business activities and simplify the movements of goods from manufacturers or distributors to the end customer.
How it works
3PL for startups makes sense to your company if you want to make your supply chain and logistics management simpler to manage. Ideally, it is outsourced to a reputable service provider where you normally source your goods or products, like in China. Their services can cover warehousing, transportation, shipment tracking, inventory management, material procurement, and customs brokerage. Some companies might have extended capabilities covering payments and freight audits.
With that in mind, you might want to integrate a 3PL service to your own transportation and warehouse management operations to ensure a more comprehensive and streamlined delivery workflow. Manufacturing, ecommerce, and retail startups are just some of those that can greatly benefit from 3PL.
Functions of 3PL service providers
Third-party logistics companies can fulfill mainly four main functions:
1. Shipping and receiving
2. Warehousing
3. Transportation
4. Distribution
So, 3PL for startups are able to provide benefits like money and time savings. Also it’s able to ensure affordable and better customer experiences. Leading 3PL service providers can scale their offerings to the specific requirements of your business, too. This way, you can thrive and grow your business in other territories with minimal hassle by improving your logistics functionality. Furthermore, they might make it possible for your business to expand into emerging countries and markets. Through 3PL, you could leverage more or new supply chains, access new markets, and enhance your customer service!
Increase your market value with the right service provider
Your success in warehousing will depend on the capability of your 3PL service provider. So, be sure to establish a partnership only with a reputable and experienced company with a good track record in delivering dependable 3PL for startups. According to Capgemini Consulting’s 2016 study on 3PL, 93 percent of companies with a 3PL service have successful relationships, where 83 percent of companies experienced better customer service and 70 percent revealed that the services have helped reduce their logistics costs.
What to look for in a 3PL company
When you’re ready to partner with a reliable 3PL for startups, make sure that it is a company with 19 years of experience in ensuring mutual and clear understanding of goals, desired outcomes, and processes, and in protecting your intellectual property rights. You should also make sure that they have a strong market presence in the country where they are operating and that they have seamless connectivity with their fulfillment center and supply chain.