3PL Business Integration

3PL Business Integration

How Does 3PL Work?

In simplest terms, third party logistics (3PL) is a part of the supply chain focused on product flow and order fulfillment. Partnering with the right 3PL can increase your ROI by allowing your team to focus on great product design, superior customer service and creative sales and marketing, while your 3PL is focused on inventory management, order fulfillment and shipping your orders. The question is, how to find the right 3PL for your business?

For many companies, the search for a 3PL starts because they are growing and they don’t know how to efficiently and cost-effectively scale operations to support that growth.

Saving money isn’t the only reason companies look to partner with a good 3PL. Expertise, focus and order fulfillment errors are common reasons companies seek help. There are many factors to consider in your 3PL search, including the size and level of sophistication you want in a 3PL partner. There are some critical things to consider when determining the right 3PL right for your business.

One thing you probably want to understand up front is the type of fees a 3PL charges, and how it will impact your bottom line? Unfortunately, the 3PL industry lacks a standard price model, but you should expect to pay fees for receiving, storing, picking, packing and shipping your products. The rates themselves and how they are structured will vary between 3PLs, but any company working to earn you partnership will be transparent with their fee structure and help with your financial analysis.

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