What does it mean to hire a logistics operator?
Logistics operators are changing the way e-commerce products are distributed by providing a range of flexible warehousing and distribution services to their customers. The industry looks set to make even more inroads with technological innovations like automation and advanced IT solutions.
Third party logistics, or 3PL, means the outsourcing of some e-commerce logistics activities to a third party.
3PL providers offer warehouses and distribution networks that get your e-commerce orders to your customers quickly and efficiently.
Many small businesses turn to logistics operators to reduce costs and overhead, improve flexibility and scalability, and ultimately improve customer satisfaction.
Why should I use a 3PL partner?
- When you want to focus on growth
- When you spend too much time fulfilling your requests
- When you want to expand into new territories
- When you have peaks in demand and you don’t want to have costs associated with these peaks
- When you’re running out of storage
- When you’re facing a backlog of unfulfilled orders or when your customer service isn’t optimized
How to choose the best 3PL
The first thing is to talk to several providers. Go back to the ones you talked about earlier with what you learned from the ones you talked about more recently.
Always check these details:
- The price and the “fine print”
- If they use their own software or if they outsource it
- The location of the logistics centers
- If the dashboard is easy to use
- If your business model matches your expectations
- If your technology can be integrated with your store
- Returns management
- Transparency in prices and costs in real time
- The shipping options they offer
The growth of logistics operators
More and more SMEs outsource part or all of the distribution and fulfillment of their online store to external providers.
3PLs are not just for large companies. It is often the perfect solution for small businesses, allowing them to expand without the need for financial outlays of storage and staff costs.
The sector began primarily to provide warehouses for customers without space to store their own products. Alongside this, these companies developed packing and shipping and inventory management solutions for their customers. Today, a 3PL can service almost every aspect of the supply chain.
What a 3PL can do for your business
Third-party logistics offers a solution to many of the problems facing emerging and growing businesses. Small businesses no longer need to rent large warehouses or employ staff to pick, pack, and ship. Store your products in an external warehouse and take advantage of the skills, knowledge and purchasing power of that company to grow your business.
Warehouse management can be a huge headache for online businesses. Legal fees, contract negotiations, long/inflexible leases, security, heating, lighting, health and safety. All of these problems are eliminated at once with third-party logistics.
How 3PLs are changing the future of e-commerce product distribution
Because logistics operators are experts in warehouse management and inventory control, they can provide solutions that go far beyond the capabilities of many small businesses. A 3PL invests in the latest technologies so you don’t have to. They also have existing relationships with carriers and use economies of scale to get the best deals on shipping costs.
Logistics companies are also investing in advanced technologies to streamline e-commerce distribution. As these technologies advance, your customers will automatically benefit from these advancements, which include the following.
Logistics providers typically work with online retailers to handle order processing, from stocking, picking and packing products, and final delivery via a variety of couriers. Third-party logistics providers like SAVAR have fulfillment dashboards and e-commerce warehouses so e-commerce sellers can stay on top of the order fulfillment process and know their products are stored in a secure environment.