Logistics 101: What Exactly Is 3PL?

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    Have you noticed how complicated the supply chain of today is getting? And it doesn't look like it will get better any time soon. More and more companies are using 3PL in New Jersey to make sure their goods get to the consumer's door or the retail store at the lowest cost possible.

    Companies that don't want to spend money on logistics solutions rely heavily on 3PLs. "Investing in solutions" can mean keeping and paying the staff that solves all of their problems and running those departments.

    3PL or Third-Party Logistics

    The official definition of 3PL, which stands for "third-party logistics," is giving all of your logistics and supply chain tasks to a different company. When a 3PL takes care of your behind-the-scenes tasks, you can put your attention on marketing, sales, and growing your business.

    What Are the Perks of Using a3PL?

    To accurately calculate the cost benefits of using a 3PL, you will need to figure out whether it makes more sense to outsource your "services" or to handle them in-house. "Services" include things like reporting, order processing and management, distribution and freight, inventory management, cross-docking, receiving and unloading containers, etc.

    So, ask yourself if you have the staff (resources) to not only put received goods in the right places on the shelves of your warehouse but also add barcodes, unpack containers, and do other things if needed. Also, if we're talking about warehouses, can you really rent that warehouse? When you think about everything, it makes good business sense for a shipper to outsource some or all of its logistics services.

    Cost-Saving

    3PLs have the power to buy things. When it comes to warehousing and shipping costs, they are the ones who try to get the prices down. The money you save is, of course, given to you. People today expect flat shipping rates, and the cheaper they are, the better. Because of this, it is important for online retailers to offer the best shipping prices they can.

    3PL also works well when there are changes in the seasons. Here's an example: Before Christmas, when sales are high, you should invest in 3PL quickly. Then, after Christmas, when all the gifts have been delivered, you can scale back your 3PL to where it was before the holiday rush.

    In the end, a reliable 3PL company can help things go more smoothly. And that might help you sleep without any worries at night.