How do 3PL Companies Work?

Starting an Online Business

The digitalization and globalization of businesses have changed the transportation industry rapidly. With ecommerce sales crossing 4.2 trillion dollars, it has become an integral part of the global retail framework.

It has enabled even local businesses to grow big and go global to sell their products far and near.

However, many may wonder how a click to the cart on the app or site brings the products right to their doorsteps. It is only by the efficient work of 3PL companies worldwide, especially in the US.

With door delivery being one of the key drivers for the ecommerce market, everyone wants to know how to do 3PL company work.

So check out the many ways that 3PL companies work for making ecommerce deliveries and overall freight movement on roads, which are significant cargo carriers compared to rail, air or sea.

What are 3PL Companies?

3PL or third-party logistics companies handle outsourcing of products within the supply chain like procurement, transportation and distribution.

While a few 3PL companies focus on a specific segment like sourcing, others fulfill multiple needs like freight brokering, distributing, and warehousing.

The best among them also enables the ecommerce companies to automate retail order fulfilment with their many tools and infrastructure. So any company in need of delivering over 30 products or growing rapidly to storage or warehouse should seek the help of the best 3PL company.

They can handle all the logistics of the produced goods to reach the market safely and fast. And companies doing it on their own may lose focus on the quality of the product or analyze the market to lose business.

How do 3PL Companies Work?

Having seen what 3pl company and its need is, it is time to know how it works to improve the businesses. For example, manufacturers may want raw materials to reach their facility in time to produce finished goods.

And once the finished goods are ready, they may need to deliver them to many places to offer it to customers. In ecommerce, as soon as the buyers click the buy button, the specific product has to reach them as early as possible.

Since the shorter delivery time is one of the major marketing strategies and safety is of paramount importance, only the best 3PL companies can do so. The following are the ways they do it effectively and safely.

  • Even before the buyer clicks the buy button on the ecommerce platform or the manufacturer needs the raw material, 3PL ensures enough inventory is in stock by stocking them in warehouses or storage ready for delivery.
  • All the received inventory are properly stored in different fulfilment centres for easy picking on the requirement.
  • Upon the customer placing the order for a particular product, the 3PL fulfilment process starts to pick the product from the warehouse or its storage.
  • After picking the product, it is essential to pack it appropriately for safe delivery to the customer in time.
  • It is critical to do the right packaging depending on the product from unbranded boxes, poly bags, bubble mailers, dunnage, packing tape, etc.
  • Labelling the products with printed information on the contents and other regulatory compliance details.
  • The last step is shipping the packed and labelled products to the customers’ place or the distributors near and far.
  • In the case of the return of products, the same procedures and processes are done for the customer to get the right product as soon as possible.

Only the best 3PL companies have the most functioning automated from monitoring the drivers, receiving & storing the products systematically, picking and packaging effectively, shipping to the desired destination safe, easy and fast.


Related Posts