The Top 6 3PL Benefits You Must Know

The benefits of third-party logistics are well-known. Many eCommerce businesses now seek third-party logistics to help them reach their market and target audience. It is also proven to increase loyalty. It increases your Return on Investment. Continue reading to learn more about 3PL benefits.

Understanding 3PL

3PL is an outsourcing service that manages your company’s supply chain and logistics. The 3PL can act as your warehouse and manage the distribution. The 3PLs fulfillment service can get your inventory to your customers.

5 Functions of 3PL Providers

Third-party logistics may be used as a single provider, or as a whole system. This means that a 3PL cannot manage warehouse storage and transportation. It can also manage your entire supply chain. Below is a listing of basic functions for 3PL companies.

Shipping and receiving

These 3PLs are more focused on the management of shipping from start to finish. It is also responsible for receiving your inventory. Many companies have an Integrated Freight Management Service (or a Transportation Management System). This helps provide an automated and streamlined routine. A 3PL oversees carrier relations, matrix reporting, and transparency throughout the shipping process.


Transporting goods is one of the most important responsibilities for a 3PL provider. It handles the shipment of your inventory from the company to its buyer as a 3PL provider. Many 3PL providers pride themselves on their connections with reliable carriers.


Warehousing is the most important feature of a 3PL provider. It integrates the company’s warehouse. It manages your stock of goods and services. It is also responsible for transport procedures. It stores and distributes the products you order once they are received.


Many 3PL companies offer wholesale and distribution services. It offers fulfillment of outbound orders, picking and packing, and manufacturing. Outsourced distribution allows you to focus on core business issues. The staff can also perform core business tasks easily.

Reverse Logistics

3PLS may offer return processing services. The 3PL provider will follow a process to replenish and return stock. It all depends on the policies of the company and your selection. It is easy for both you and your customers to choose a 3PL that offers reverse logistics. You don’t have to worry about returns in-house. Your buyer can also track the status of their return orders through the website.

It is not necessary to have all hands on deck if you are in a partnership agreement with a 3PL company.

6 The Benefits of 3PL for Your Business

You can see how a 3PL works and how beneficial it can be to your business. Below are some of the most significant effects that you’ll experience when you partner with the right 3PL.

Consistent Speed & Accuracy

Customers today demand speed and accuracy. Customers want their items delivered quickly and in perfect condition. If you are the only one doing all the packing, shipping, and picking, it sounds impossible. A trusted 3PL company can give you access to the technologies that are vital for your business. 3PLs can automate inventory monitoring. It also performs routine tasks to prevent errors. It provides absolute visibility. Any eCommerce site can show both efficiency and value.


A 3PL membership is an investment. It is an investment. It saves you money on warehouse rent, labor, logistics, and technology. You don’t need to allocate a budget for these services. Instead, you can use it all through your in-house fulfillment. You can also use the funds to pay for other business expenses.

Time Saving

Before you can send out a customer’s order, it is necessary to check and prepare the items. It can be time-consuming to do these things manually during peak season. 3PLs allow you to spend more time on important matters. Outsourcing small tasks to a 3PL provider can help you create more strategic initiatives. You don’t have to wait in line at the post office to send an order. You don’t have to wait for the building infrastructure to be completed to start your business.

Regulated navigation

When shipping products, you need to choose the most reliable carrier. Some providers won’t transport nutraceuticals and hazmat. Some providers do not have cold storage and don’t ship wine or spirits. This is where a 3PL provider can help. You can be sure that your goods will reach their customers because of its extensive connections. With the right 3PL partner, you can exceed some of the strict regulations set by shipping companies.

Industry Expertise

There is no perfect person. In any type of work, errors are inevitable. Your business can also be affected by the same errors. You can reduce it by hiring experts. 3PLs offer a variety of expertise that is relevant to your business. It’s like a umbrella of 3PL services. Sometimes you won’t realize you need it until they provide it. It allows for efficient packing and picking. It negotiates lower shipping rates. It keeps up-to-date with industry trends and complexities. You can also expand your partner network and technical resource. You gain their expertise.

Expansive Internet

Many business owners start by selling in one area. You will need to find ways to reach your expanding market as the business grows. A 3PL provider can help you expand your business. You can ship orders from one location but they will be shipped to multiple shipping zones. Many 3PLs have fulfillment centres across the country. You can lower shipping costs and reduce transit times by having one in your eCommerce. You can also gain repeat customers by being easily accessible to them.

Third-party logistics outsourcing can bring great benefits to your company. This allows warehouse professionals to improve your fulfillment operations. It can help you build loyal customers and generate positive reviews over the long-term, even though it may cost more.

Choose the best 3PL provider for your business. Are your goods too large to transport or fragile? Red Stag Fulfillment, a trusted 3PL company, might be a good choice. It is skilled in handling fragile, heavy, and bulky goods. It offers safe transport for high-value items. Check out their official site to see the benefits it offers for eCommerce businesses.

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