As your business grows, it makes sense to cut costs without affecting your operations. Any savvy business owner will be working with a reliable partner to stay competitive, and so should you. One of the critical partnerships you should have is with a flexible distributor who can take care of goods distribution and fulfillment, warehousing, and inventory management. Third-party fulfillment companies can fill that role.
What Is 3PL Companies?
A third-party fulfillment company is known as a ‘third-party logistics company.’
They serve as the middle stage of the service between the end-user and the manufacturer. In a conventional business, a manufacturer delivers the goods directly to consumers. And a second-party framework would hire a transportation agency to ship goods to the customer. A 3PL model means that you will be hiring 3rd party fulfillment companies for warehousing and transportation along with other important services to get your goods to where they need to be.
How Do 3PL Companies Work?
The third-party logistics service can be critical to your success. It could improve your customer service and minimize overall logistics costs. However, not all 3rd party logistics agencies may produce the same results. Thus, you need to be mindful of who to hire. Ideally, you should work with a service provider with at least a decade’s worth of experience in the industry, and with a proven track record of keeping your IPR confidential. Moreover, you should be able to trust them and establish a clear and mutual understanding with them. So you can be sure that they are able to fulfillment of your desired outcomes.
Some of the top third-party fulfillment companies have established a strong market presence in countries where most businesses source their goods, such as China. They also have strategically located offices in key manufacturing regions and a team of onsite employees. Consider a third-party logistics provider known to have seamless connectivity between their fulfillment center and managed supply chain, and an expansive global network of logistics services.