A third-party logistics or 3PL warehouse takes care of clients' supply chain and logistics operations. They are used for outsourcing third-party warehouse and distribution according to the needs of their client's inventory and fulfilment services. Third-party logistics are responsible for managing 3PL stock and holding and shipping the inventory of multiple companies. The companies that store inventory for their clients and themselves are hybrid 3PL.
Significant responsibilities of third-party logistics
They take on essential supply chain responsibilities to help their clients focus on their business's growth. Third-party logistics are responsible for the following operations: -
Making a schedule and executing the receiving of inventory to the warehouse
Maintenance of warehouse
Smoothly execute the sorting, managing, and accounting for all inventory.
Kitting and assembling the products
Picking, packing, and shipping the products to the customer
Negotiate and demand discounted shipping rates
Management of recurring subscription boxes
Besides this, inventory third-party logistics have several other duties. For example, many 3pl warehousing in Melbourne and other parts of the globe also take responsibility for labeling, cycle counts, and sending shipping notifications to consumers. Apart from this, they also perform inventory reporting during high turnover.
Types of 3PL firms
Third-party logistics are divided into the following category: -
Financial-based 3PL – Such companies have expertise in the financial aspects of eCommerce logistics. They mainly perform the task of freight payment, accounting, audits, and financial management of inventory.
Distribution-based 3PL – These 3PL companies will store your products for you until further orders.
Transportation-based 3PL – It mainly focuses on transportation services.
Information-based 3PL – They are online-based companies that primarily focus on business-to-business operations.
Forwarder-based 3PL – Such 3PL companies focus on directing the stock from the warehouse to the mail carrier who will handle the delivery.
Why do you need a 3PL warehouse?
Third-party logistics are cost and time effective as they help companies save time and money on coordination and logistics. In addition, they help in improving customer experience through regulatory navigation, industry experience, and speed and accuracy.
Industry expertise
They have industry expertise and connections through which they can combine many 3PL services in one offering.
Regulatory navigation
Certain products have many controlling rules and regulations. 3PL warehouse built facilities to accommodate such regulations.
Speed and accuracy
3PLs consist of advanced technology that manages customer inventory and automates routing tasks that help speedy and accurate delivery.
Sum up
It would be best to always work with experienced order fulfilment services to prevent last-minute mess. A low price can attract you, but if you don't want to end up with frustrated customers, then you should always rely upon an experienced fulfilment company. Based on the above description, if you are also looking for a professional order fulfilment company, then you can refer to NPFulfilment. They have 3pl warehouse in Melbourne, Sydney, Brisbane, and other parts of the world.
