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Our Favorite Question: Why Use A 3PL?

Here at ShipWizard, we get a lot of customer questions.

They range in scope from operational to logistical. But there’s one question we get time and time again that always deserves a thorough answer. That question is “Why Use a 3PL?”

Companies Use 3PLs for Different Reasons

The truth is that different companies employ the services of a leading 3rd party logistics company for a lot of different reasons. With the many different services we can offer, businesses in nearly every industry can reap huge benefits.

Here are just a few of the benefits companies will see:

  • Eliminating hassle. Unless you have all the right equipment set up and your people are well trained, doing your own logistics can be a nightmare. Bins are easy to confuse without advanced warehouse management systems, making error rates high. It’s a chore that takes labor away from the focal point of your business.
  • Increasing order delivery speed. It’s hard to compete with the biggest of the big dogs out there, but having the help of a 3PL that can properly route and reroute your orders is a great start to a faster last mile.Because we’re focused on shipping your orders, rather than being torn between different jobs, we can also get them out the door faster than you may be able to. That saves days of travel time, too.
  • Flexible warehouse storage. Your warehouse, or the warehouse you’re pondering, only holds so many boxes, crates and pallets. Once you reach that number, your growth is limited unless you invest even more in warehousing and employees to run the new space.3PLs are really handy in this department, since you only pay for the storage you use. So, if you need half the space right after Christmas that you used before Thanksgiving, it’s no problem. And if you grow exponentially, your warehouse partition can grow with you.
  • Saving money. 3PLs worth their salt have already negotiated deals with shippers and they tend to pass those savings on to their customers. Shipping is expensive, so every nickel you can save is a win.Not only do we buy shipping space in bulk, we buy shipping supplies that way, too. Between the two, you’re cutting your cost of doing business bit by bit.
  • Reverse logistics. Getting an order returned is the worst. Besides being potentially demoralizing, depending on the reason for the return, handling returns can be cumbersome, costly and confusing. There’s no consistency, that’s the real challenge. This is why 3PL customers often take advantage of our reverse logistics teams.

We love it when you bring us questions that we can answer with so many possibilities. Now, when someone asks you why you use a 3PL, you can run down the list and choose the ones that you find the most applicable.

January 16, 2019
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