What is 3PL and how can they grow your business?

What is 3PL?

Good question! That's why we're here though, to answer all your logistical qualms. So, you're unsure about what a 3PL is? No worries, here is a clear definition to get us started:

3PL = Is an abbreviation of 'third party logistics.' 3PL can be defined as a means of outsourcing elements of your fulfilment and/or logistical services to a third party company. 

So, to give this definition a little bit of context, the third party in question can be in the form of either inventory management, warehousing and fulfilment. Whatsmore, the third party in question (e.g. a fulfilment provider) will be in addition to the shipper, the carrier and the receiver within the supply chain - just to give that extra helping hand!

What are the benefits of 3PL?

As a medium to high growth eCommerce business, there are a number of benefits to take advantage of when outsourcing your various logistical needs to a 3PL provider. 

Firstly, when you outsource your fulfilment, for example, to a 3PL provider, you free up the time you spend picking, packing and shipping your customers' orders yourself and are then allowed to focus on other key areas of your business (e.g. your communications), whilst optimising your supply chain.

Secondly, if you are an eCommerce business that is currently positioned more towards the start of your growth journey, then one crucial benefit to going with a 3PL is the ability you have to access key industry knowledge and insights, that add value to your eCommerce business - whatever stage you are in!

Additionally, by integrating 3PL into your supply chain, your eCommerce business is then given the opportunity to emerge into new international markets as well. Your company can then reap the benefits of this increased exposure to other consumer bases that you may not be involved with at present.

What is the difference between 3PL and 4PL?

Let's be real: fourth party logistics also have a huge part to play in the supply chain. They not only perform many of the same functions as third-party logistics providers, but they also have a greater duty in assisting business clients in achieving their objectives. 

The main distinction between a 3PL and a 4PL supplier is the level of accountability and control they have. Customers typically rely heavily on their data and services to grow and achieve their company goals, and 4PLs are more like trusted advisors. One of these solutions will work best for you and your eCommerce business, depending on the size of your company and your overall objectives.

What’s next?

The advantages of partnering with a 3PL provider are undeniable. From efficiency gains and cost savings to expertise, scalability, and enhanced customer experience, you not only gain a competitive edge but also a strategic business partner.

Confident that partner is us? Speak to an expert today and we'd be happy to help.