Discover the benefits of 3PL and how strategic outsourcing can enhance your supply chain. Learn how third-party logistics providers can help optimize operations, improve efficiency, and reduce costs.
Why Use 3PL? How It Transforms Your Supply Chain Management
“Why use 3PL?” is a question many e-commerce business owners and operations managers often ask. The answer is simple: To meet customer demand. The role of 3PL in logistics cannot be overstated. In more ways than you can count, it transforms your supply chain management, enabling you to remain competitive and stay in the minds and hearts of your customers.
In this article, we’ll explore why using 3PL is highly recommended and the transformative power it holds for your business and supply chain.
Why Third-Party Logistics is Vital for Modern Businesses
In the e-commerce world, managing a supply chain, no matter the size, is no small feat. One wrong move in your supply chain and your business will suffer a loss.
The challenges surrounding the supply chain have become bigger and more complex for businesses to handle and tackle alone. From thriving and rapid e-commerce growth one second to the constant fluctuation in the global trade supply chain the next, it can be hard to be stable and manage your e-commerce businesses.
Also, with customers who want everything now, especially faster, more efficient deliveries, it can feel overwhelming and hard to deal with all the unpredictability. So, how do companies stay ahead?
Enter Third-Party Logistics (3PL) providers like Standvast. A 3PL company takes the burden of managing your supply chain upon themselves at a low cost. However, it’s important to note and understand that 3PLs do more than just save costs; they offer modern and tech-driven, scalable solutions that are integrated into your supply chain to help your business smarter, leaner, and run smoother, regardless of the complexities and challenges in supply chains.
In other words, they become an extension of your operations, enabling you to stay afloat and agile in the rapidly changing environment.
Key Benefits of Using a 3PL for Your Business
Here are five key advantages of third-party logistics providers in supply chain management
Cost Savings and Efficiency
Cost-effectiveness and efficiency will always be at least No. 1 or No. 2 on the list of 3PL benefits. 3PL providers work with a large number of companies, which enables them to provide lower shipping rates to individual e-commerce businesses. This means you get to tap into shared services with the most reliable shipping methods.
For instance, Standvast operates on a shared services model that significantly helps businesses optimize and reduce fulfillment costs by 30% or more.
Advanced Technology Solutions
3PL technology solutions play a huge role in supply chain management today. Many 3PL providers come equipped with advanced tech solutions or tools, such as real-time inventory tracking, automated order processing, etc., that take logistics to the next level.
When it comes to the innovative use of tech solutions, Standvast ups the ante with solutions like Warehouse Management Services (WMS), Supply Chain Planning and Forecasting, Order Management Systems, Inventory Visibility and Controls, and more, which they integrate into their services. This allows them to monitor your inventory, orders, and deliveries in real-time and lets you stay in the loop.
Scalability for Growth
3PL offers ample flexibility, which is a big plus for scalability. They make scaling easy, whether expanding into new markets, managing seasonal demands, or launching a new product.3PL scalability is unmatched as it allows you to ramp up your operations without overhauling your systems. So, instead of scrambling to hire more staff or find more space, they are there to move with you strategically and adjust operations to match your growth.
Focus on Core Business
One thing outsourcing to 3PL providers does is it gives you time to focus on core aspects of your business. You get the time to focus on things like product development, marketing, improving and delivering exceptional customer service, building customer relationships, and more.
Supply chain management can be a headache, with countless moving parts to manage. But by letting 3PL experts handle those complexities, you free up internal resources to focus on core activities that drive growth.
Professional Service from Supply Chain Experts
In addition to logistics services, 3PL offers professional services from supply experts. They will help you strategically review your fulfillment and supply chain and areas where there are gaps and provide a tailored solution to meet your supply chain needs.
Standvast stands out in this area as they are filled with some of the best and brightest minds in the supply chain and fulfillment industries who can confidently scale your growth and forge new realms of progress and profitability. These experts work closely with your business to offer personalized services and strategic guidance for effective optimization and efficiency.
The Role of 3PL Technology Solutions in Your Business Growth
One of the biggest business growth boosters is technology, and 3PL providers leverage that to the fullest with state-of-the-art and innovative technology like Order Management Systems, Warehouse Management Systems, Supply Chain Planning and Forecasting, Inventory Visibility and Controls, and more.
In logistics, the integration of automation and technology are game-changers in more ways than two. They have and continue to revolutionize how businesses can manage their inventory and track and distribute their products. Also, you gain access to real-time insights into every part of your supply chain, making it effortlessly easy for you to stay on top of your logistics and make smarter business decisions.
Outsourcing logistics operations to a 3PL company, is an investment into a partnership that will help your ecommerce operations flourish. By adopting a cost-effective approach to supply chain management and fulfillment, you can make your operations more efficient while improving accuracy, speed, and customer satisfaction—ultimately driving long-term business growth. With the right tools, you can scale your business more effectively.
Looking to scale your business with advanced logistics solutions? Discover how Standvast can streamline your supply chain.
Standvast – Your Trusted 3PL Partner
At Standvast, we’re not just another 3PL provider with the main focus on only logistics—we’re a partner invested in helping your business thrive and making your customers see you in a new light every time.
With a combination of
- Simple, flexible, and innovative technology (software and AI tools) to augment or replace all or parts of your current solution,
- Extensive industry expertise to help your supply chain strategy, operational excellence programs, network modeling, vendor/channel management, or new e/omni-commerce development and
- Personalized solutions to help you get the best out of your supply chain and order fulfillment
We open the door to new ways to fulfill your promise to your customers and unlock growth opportunities. From tailored fulfillment strategies to seamless technology integration, Standvast is ready to be your trusted 3PL partner every step of the way.
Ready to take your business to the next level with a reliable 3PL partner? Contact Standvast for a consultation today!
FAQs
When Should a Business Consider Using a 3PL?
Here are some key reasons to consider using a 3PL provider:
- When you are entering new markets
- Your logistical needs become too complex for you or your team to handle
- You are looking to streamline your operations and reduce the cost of in-house management
- You are dealing with an increase in customer complaints
- When you are experiencing a rapid increase in order fulfillment costs, or looking to scale your operations.
What is the main purpose of a 3PL Provider?
A 3PL provider handles and manages various aspects of the business’s logistics and supply chain operations. This includes from warehousing and packaging to transportation and distribution. Essentially, they are in charge of the entire process of order fulfillment.
What is the importance of logistics management?
Logistics management manages several processes in the supply chain and provides the highest accuracy percentage in terms of meeting customer demands. This includes ensuring products move smoothly from point A to B on time, optimizing inventory levels, and reducing operational costs, all of which contribute to customer satisfaction, competitive advantage, and business growth.
Conclusion
3PL providers can be described as e-commerce or supply chain life savers, and partnering with one like Standvast is the “positive turning point” or “sigh of relief” your business needs. The benefits you’ve heard that a 3PL can provide to your business are just the icing on the cake.
From offering you the flexibility, technology, and expertise you need to scale your business without the logistical headaches to making your order fulfillment process more streamlined and efficient, they give your customers a reason to keep coming back.
Get in touch with us for more information, and check out our blog and resources for more on 3PL providers, supply chain management, and order fulfillment.
