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April 2, 2023

How 3PL Services Add Value to Your Supply Chain

How 3PL Services Add Value to Your Supply Chain

by Tom K / Friday, 21 December 2018 / Published in Blog
Young male worker lowering a pallet with boxes. Forklift driver working in a warehouse.

istock.com/Halfpoint

Everyone is looking for ways to improve their business, but too often the focus is put on internal changes to discover how existing partners can help bring about success. However, looking outside of your current operations is often the key to growth. Third-party logistics providers (3PL services) provide value-added services in logistics to help companies that manufacture or sell products find big wins. Logistics service providers are more than glorified warehouses—they provide a variety of features that can give your supply chain a competitive edge. If you want to add value to your supply chain, here are some of the features you can enjoy when working with a 3PL provider.

Industry Experience & Connections

3PL providers with years of experience have connections and resources to allow for the most efficient supply chain processes. They can leverage relationships and have a knowledge of industry trends and volume discounts. This results in lower overhead costs and a wider range of service options to help you manage your costs when your service needs change.

Reduce Labour Costs

When you outsource your order fulfillment, you can reduce labour costs on your end. You won’t need to staff a warehouse and hire workers to handle different tasks. Depending on the size of your operation, you may save a serious amount of capital. Instead of paying individual warehouse staff, your 3PL provider will take care of managing your warehouse and distribution processes with their own trained employees. By staying lean this way, you can focus on the core parts of your business, while your provider takes care of the rest.

Accurate & On-Time Fulfillment

The seamless flow of goods is necessary for successful production lines and the satisfaction of customers and online shoppers. 3PL providers can help shippers meet these requirements by making sure shipments are accurate and timely. With robust technology, 3PL providers can have a detailed view of everything that goes on within the supply chain. Visibility helps drivers follow the best routes to deliver products and helps warehouse staff move inventory along to enable faster shipping.

Reverse Logistics Assistance

Especially in e-commerce business, a solid reverse logistics solution is a must-have if you want to reduce waste and increase revenue. One of the supply chain value-added services a 3PL provider can offer is a reverse logistics solution. You will be able to salvage raw materials and recycle or reuse returned products. The core goal of this services is to give the original producer cost-savings by making the most of products and materials and allowing them to run a more environmentally-friendly supply chain with less waste.

Transparency and Integration in Warehouse & Distribution

Conversational transparency is one of the most important factors that affects unity and understanding in warehousing and distribution. Some IT systems allow consumers to view their product’s movement from shipping to delivery to arrival, which also helps manage expectations and improve customer service. Seeing the movement of your goods and products can impact your sustainability goals and boost your competitive edge by reducing the waste of revenue. Transparency features within the organization can include stock level notifications, order updates, shipping times, returns processing information, and more.

Transportation & Delivery Support

By leaning on the expertise and experience of a 3PL provider, you will be able to negotiate the lowest rates for picking, packing, and shipping methods. As a result, you can reduce the costs for shipping product orders to customers. You will notice that your conversion rates increase, and the rate of shopping cart abandonment will decrease.

Save Time

Outsourcing logistics will save your company valuable time and money. 3PL providers can eliminate your need to have multiple warehouse spaces, technology, transportation, and staff, as they will have the necessary tools to execute the logistics process. They can save you from making costly mistakes and allow you to grow your global network with higher return on investment and lower risk. You won’t need to worry about paperwork, billing, staffing, training, and optimization to get your goods to your customers—they will handle all of it and keep you up to date.

Compliance

E-commerce has created more global business opportunities for retailers and companies that manufacture products. It has provided access to global customers and expanded revenue streams. However, it can lead to the need of more staff and time dedicated to understanding complex legal compliance needs and trade requirements. 3PL providers can help companies understand these changes and provide the tools to help you meet expectations.

Find the Right Third-Party Logistics Service Provider in Toronto

Working with a 3PL provider can help you deal with challenges that come along the way in terms of costs, logistics, customer satisfaction, and changing expectations from suppliers and consumers. With their experience and connections, they can find you quick and effective solutions to problems like these that may hinder your success. They will also bring you many advantages such as supply chain management software and technology that increases visibility and communication between you and everyone in your business network.

If you are looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing to our 3PL logistics in Toronto, or to ask any questions, contact us today.

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Tagged under: 3pl, 3PL services, logistics service providers, supply chain value-added services, third party logistics, value-added services in logistics

About Tom K

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