3PL stands for third party logistics and can be defined as a provider of outsourced logistics services. Logistics services encompass anything that involves management of the way resources are moved to the areas where they are required.
A 3PL service may be a single service such as shipping or warehouse storage, or it can be a bundle of services that manage an entire supply chain.
Whether you work in small volumes or have complex distribution requirements, a 3PL can add value to your supply chain. Below we look at 3 major benefits of working with 3PL’s:
1. Save time and money
Instead of paying for an entire facility dedicated to your inventory, a 3PL provider can eliminate the need to invest in either warehouse space or additional warehouse space. For example, a business can enlist a 3PL to warehouse existing assets for future deployment, saving both time and money to store and process these assets.
3PL’s can also eliminate the need to invest in technology, transportation and trained staff to execute the logistics process. Not having to be across the packing and shipping of your products is a great way to save time and money.
Businesses can also benefit from economies of scale by being able to leverage off a 3PL’s large network of resources.
Businesses with seasonal periods can experience the ability to adjust warehousing space through 3PL’s when inventory fluctuates, offering flexibility of inventory, relative to the shifts in supply and demand.
A 3PL is able to scale up or down their efforts in line with your business trends and what product season your business is in.
3. Increased efficiency
Due to the complex nature of businesses it is extremely difficult for a business to be across and have the right expertise in every single area of the business.
A 3PL provider specialises in logistical operations and management, allowing business’s to focus on their core competencies.
Instead of allocating capital, labour and other assets to managing logistical operations, the business is free to focus on their primary areas of their business, in turn increasing overall efficiency.
As product and service demand continues to increase, businesses of all industries are partnering with 3PL’s to find flexible solutions to help streamline their supply chain, increase flexibility and reduce capital costs.
Here at Safer Storage Systems we specialise in the handling, storing and re-deployment of recycled assets, allowing you to focus on your primary business.