Logistics outsourcing is one of the most popular and effective business strategies for businesses to streamline their supply chains.

Today, it has become a common practice among businesses to outsource their logistics and supply chain to a 3PL service provider.

External outsourcing service providers are known for providing quality and cost-effective supply chain management solutions.

They also provide value-added services such as inventory management, real-time tracking, and customised logistics strategies.

In this blog, we will explore what 3PL service providers are and how they can help streamline your supply chain. 

What Are 3PL Service Providers? 

3PL stands for third-party logistics service provider. A 3PL service provider is a logistics outsourcing firm that provides supply chain solutions to other businesses. 

Third-party logistics service providers manage the logistics and supply chain operations of other businesses. 

They also provide services such as warehousing, transportation, order Fulfillment, and inventory management.

They also help businesses save a significant amount of money and increase the supply chain efficiency of logistics operations.

External logistics outsourcing service providers also help businesses scale their logistics operations when product demand increases or decreases.

3PL service providers also have the necessary tools and skilled professionals that businesses can leverage for their benefit. 

How 3PL Works: The Core Functions

Third-party logistics service providers offer a variety of services to their clients. It includes warehousing and storage, inventory management, order fulfilment and processing, shipping and distribution, and returns management.

Warehousing and Storage

Third-party service providers own and operate warehouses and storage units. It allows businesses to scale their operations when product demand increases or decreases.

Inventory Management 

Third-party service providers are equipped with advanced inventory management systems. It allows businesses to track stock levels and manage an appropriate stock level. 

It prevents stockouts and allows smooth and efficient supply chain operations. 

Order Fulfillment and Processing

3PL service providers are also responsible for order fulfilment and processing. 

It includes picking up the order from the shipper’s address, bringing it back to the warehouse, packing it and then shipping it to the delivery address. 

Returns Management 

Handling product returns can be a time-consuming and costly process. Third-party logistics service providers also provide reverse logistic services.

They are responsible for picking up the returned products and then efficiently shipping them back to the shipper. 

Key Advantages Of 3PLs

Here are a few key advantages of third-party service providers.

Cost Efficiency 

Cost savings is one of the most important reasons why businesses prefer to outsource their logistics operations to 3PL service providers.

Managing an in-house logistics team requires massive initial costs. It requires investment in acquiring assets such as trucks, warehouses, payroll costs and more.

Hiring and training an in-house logistics team requires a huge investment. However, outsourcing the logistics services to an external service provider can be a lot cheaper than managing in-house logistics.

3PL service providers have already invested in acquiring these resources. They charge a nominal fee for the service they provide to clients. 

Small businesses and startups must consider outsourcing their logistics and supply chain to a 3PL service provider. 

As they lack funds during the initial stages, it is more convenient to outsource these services to an external service provider. 

Scalability and Flexibility

Another benefit of outsourcing logistic services to 3PL service providers is that they allow scalability and flexibility.

Those businesses that have their own in-house logistics and supply chain struggle to scale their operation when needed.

The market keeps fluctuating, and so do product demands. So, when there is a sudden increase in product demand, the organisation needs more resources to support the efficient delivery of products to customers.

However, when you outsource your supply chain operations to a 3PL service provider, they are responsible for efficient logistic processes.

They have all the necessary resources to manage the increased demand. Therefore, businesses must consider outsourcing their supply chain operations to a professional 3PL service provider. 

Expertise And Experience 

Another benefit of outsourcing logistics operations to an external service provider is that they have the expertise and years of experience in this industry.

Third-party service providers have skilled and experienced professionals who have been working in this industry for a long time.

They know all the ins and outs of the logistics industry. They have faced certain challenges in the supply chain management and know how to deal with them effectively.

Outsourcing your service to them will ensure a streamlined and efficient supply chain operation. 

Cargaison Express is a reliable Logistics outsourcing services management company that provides efficient services to clients.

Access To Advanced Technologies 

Another advantage of outsourcing your logistic service to a 3PL service provider is that they have the advanced tools and technologies used in the supply chain industry.

A professional outsourcing service provider has all the necessary tools and technology required for efficient supply chain operations.

These tools and technologies not only enhance the efficiency of logistics operations but also reduce costs.

Some common technologies include real-time tracking systems, predictive analytics and automation capabilities. 

Cargaison Express: Reliable Logistic Outsourcing Service Provider 

Logistic outsourcing has become a common practice among businesses. It allows businesses to save costs, increase efficiency, and enhance the quality of supply chain operations. 

3PL service providers offer end-to-end logistics solutions. It includes transportation, warehousing, inventory management, and order fulfilment. 

If you are looking for a reliable logistics outsourcing partner, choose Cargaison Express. 

We provide efficient and reliable logistic services to clients, specifically customised to their needs and requirements. Get in touch with us to streamline your supply chain operations.