In an effort to stay competitive in ecommerce sales, it has become necessary for online retailers to provide their customers with inexpensive and fast shipments. For this reason alone, 94 percent of third party logistics providers (3PLs) have noticed an increase in sales within the past year, according to NChannel.
What is 3PL?
Third party logistics companies navigate the supply chain for businesses who want to achieve cost-effective and efficient shipping for their products. This process can include warehouse management, transportation of goods and estimating shipments.
Benefits of 3PL
As Amazon takes over the supply chain, many people are dedicated to their “prime” services because of one thing: their fast and free shipments. In order to keep up with the pace of these ecommerce powerhouses, retailers must reduce their shipping costs and time. Since most retailers don’t have the logistics expertise or resources, many look to third party logistics service providers to accomplish customer satisfaction. 3PLs handle the relationships with carriers and trucking companies, which is necessary to obtain volume discounts. By outsourcing their logistics needs, retailers can:
- Spend more time focusing on core operations and customer service.
- Opt out of navigating the supply chain and commit to dependable shipping for their products.
- Build a reliable franchise upon a foundation of resources and knowledge.
Growing businesses acknowledge the importance of a strong focus on customer experience rather than managing inventory and accurate shipping. As the supply chain becomes more complex and difficult to maneuver, 3PLs are one of the fastest-growing markets, with a projected growth of 5.77 percent by 2022.
SmartWay Transportation is a third party logistics service provider in the Kansas City area. To learn more about how your business can benefit from our services, visit our website.