3PL is a popular solution for e-commerce businesses and its providers act as a bridge between online businesses and customers, speeding up order processing. Ecommerce businesses that use 3PL services store their inventory in special warehouses known as fulfillment centers. When a customer places an order online, the product is downloaded, prepared, and shipped directly from the fulfillment center to the customer's doorstep. Fulfillment centers can also process business-to-business (B2B) orders, including high-volume goods shipped to retailers in bulk.
The goal of the 3PL eCommerce fulfillment center for local small businesses is to improve enterprise operations by outsourcing logistics processes, which is why companies of all sizes – from small to large – are turning to 3PL to streamline their supply chains and develop seamless implementation strategies.
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Exporting some of your supply chain functions to a 3PL provider can significantly increase your company's potential savings.
As? To get started, you don't have to worry about paying rent for a warehouse or shared industrial space. Turning your backend work over to a 3PL provider also means that you are not responsible for liabilities such as damaged inventory, damaged equipment, and accidents that occur at the execution center or while inventory is being transported. Your 3PL provider covers these costs, as well as other operational costs such as equipment, training and certification, and IT systems.
Companies that are responsible for their entire supply chain need to hire and manage drivers and warehouse workers. This allows limited resources to be diverted from other areas of the organization. With each new employee added, this means more time to manage schedules, payroll, and taxes. This can be very stressful and time-consuming for small businesses that may not be able to build and manage an implementation team.
Outsourcing to a 3PL provider will prevent your workforce from being unnecessarily bloated. You don't have to worry about hiring, training, and managing support staff like delivery drivers and warehouse workers.