When it comes to coping with your warehousing and fulfilment prerequisites, then what matters the most is the right partner. Going with a 3PL partnership is the best solution, however, you should be sure if a 3PL partnership is yielding any benefits to you.
This is a well-thought-out guide about the ins and outs of what a 3PL partnership is and when it is the right time to go for it. In this guide, we will learn about the advantages of 3PL partnership for your business with other aspects.
What is a 3PL Partnership?
When a business partners with an external service provider to manage and optimize its day-to-day supply chain operations, this kind of partnership is termed a 3PL partnership. In this kind of partnership, the 3PL provider provides an array of logistics and supply chain management services in several industries.
The main aim of pursuing a 3PL partnership is to boost the productivity of a business by making it more efficient. These services also entail warehousing, transportation, fulfilment, and inventory management. Sometimes, it may also include broader aspects of supply chain management.
When You Must Need a 3PL Partnership?
It can prove to be a game changer for your business if you enter a 3PL partnership, however, timing is crucial. At all times since you start a business, you may not need a warehouse. So when is the right time? The right time is when your business is growing rapidly and you are having a difficult time keeping up with order fulfilment. Or if you plan to have growth in new markets, a 3PL can provide the global development you need. Not only this, but you may also need a 3PL partnership if you do not have enough in-house expertise or resources for smooth logistics management. However, know that the 3PL partnership is not an all-encompassing solution.
Advantages of Collaborating with a 3PL Partner
Partnership with a 3PL can offer many benefits to businesses. Let us have a look at the benefits of 3PL.
Wide Array of Services
Businesses are able to outsource errands such as warehousing, packaging, fulfilment and order distribution to 3PLs. 3PLs usually have a wide network so you can avail of various services from them like software solutions, shipping logistics etc.
Technological Advancements: 3PL companies may let you have access to high-end technology such as reporting tools, track and trace technology and Transportation Management Systems.
Knowledge and Expertise: 3PL comes with an in-depth understanding and expertise in supply chain logistics, which is beneficial in resolving the complexities of fulfilment, warehousing and shipping.
When a 3PL Partnership is not suitable?
In many situations, a 3PL partnership may not turn out to be ideal. Following are some situations that point out when a 3PL partnership is not beneficial at all:
An appropriate physical location is a must. In case a 3PL is far away from your customer base then you may need to wait for longer shipping times and higher shipping costs. The location needs to match the geographical distribution of your customer base to optimise shipping time and costs.
Insufficient Growth Support
It is definitely not the right choice if a 3PL partner is not capable of extending support to your company’s growth. The 3PL needs to have a greater level of flexibility to scale operations as your business proliferates.
Inadequate Industry Experience
Relying on a 3PL with minimum experience in your specific industry is detrimental to your growth. The 3PL must comprehend the industry standards and needs related to your product.
Incompatibility with Your Business Needs:
If you and your 3PL partner have a lack of shared goals then a 3PL partnership is not the right option for you. A potential partnership needs to have a shared target customer and a partnership mentality with greater focus on solutions.
Still not decisive whether a 3PL partnership is the right move for you or not? Talk to us to make an informed decision. We are the best 3PL partners that you can partner with. Get benefits from our enriched experience and take your business to the next level.