What Is 3PL?

3PL, short for third party logistics and also referred to as a fulfillment center or a fulfillment warehouse, is an important service that helps companies with their logistic operations. Without such a service, many companies would find themselves struggling to take care of every issue they run into, especially as inventory management and product shipments can be complicated and time consuming. That’s why third party logistics companies exist.

What Is Third Party Logistics?

Third party logistics is when a company outsources its logistics work to a different company. This can mean shipping products, using a third party storage facility, and fulfilling customer orders and stock resupply requirements.

What Is a Third Party Logistics Provider?

A third party logistics provider is a company that provides 3PL services to other businesses. They’re companies that are dedicated to or capable of handling the logistics work that may trip up other companies. They handle the hardest work with their own facilities, equipment, and employees, ensuring the logistics issues are handled by trained and prepared experts, no matter what sort of inventory is being shipped or kept.

What Are the Benefits of Third Party Logistics?

There are a lot of reasons a company may choose to work with a third party logistics provider instead of doing the logistics work themselves. They mostly come down to a few key elements: 

  • Efficiency
  • Experience
  • Cost
  • Superior results

    Better Efficiency

    With third party logistics, a company that relies on the shipping, receiving, and storing of inventory can grow and thrive without having to worry about supply chain issues and other logistics problems. In short, third party logistics helps companies handle the jobs they need to get done, without forcing them to deal with problems and tasks beyond their core focus. Everyone can take care of their specialty, so the work gets done more efficiently and with better results. This is the main draw of third party logistics, but there are several other benefits associated with hiring a 3PL company as well.

    Experienced Employees

    The employees who handle third party logistics work are experienced in shipping, receiving, and storing inventory. Therefore, a company can rest assured knowing its inventory is in safe and reliable hands. Similarly, the shipping vehicles and facilities are also dependable, from cold storage for perishable foods to the ability to handle potentially dangerous or toxic products without harm. Any company that has an inventory they need to transport must know that this inventory is being handled with care, and that’s a service 3PL companies can provide. 

    Lower Costs

    3PL companies also keep costs low, even as companies have to ship and order a lot more inventory. This works for a few reasons. For one, the shipping costs can be lower. A 3PL company may have more shipping zones, meaning inventory doesn’t have to travel for long distances. There is also a lowered labor cost — 3PL companies serve multiple clients, allowing them to divide the cost between those clients, with each one having to pay a lower amount. These providers can save money in other areas, too, from optimizing the shipping process to negotiating for lower freight rates and providing more storage space. 

    Better Results for Handling Inventory

    In essence, the reason so many businesses are turning to third party logistics is because third party logistics services can provide them with better results and profits. The experts, with their greater capabilities, outreach, and experience, can be trusted to take the wheel and provide the work their clients need in exchange for ensuring the inventory is handled quickly, safely, and affordably. That’s why third party logistics is a growing industry — and why any business that needs large amounts of inventory to be handled should consider hiring a third party logistics company to assist them.

    Hire Next Exit Logistics

    If you and your company have a lot of inventory and need someone experienced in transporting or storing that inventory, we can help. Next Exit Logistics specializes in providing superior logistics and freight services. We can be the 3PL team that can handle everything you throw at us, even if it’s something you wouldn’t expect to have shipped and stored. Your inventory is important, and we’ll make sure it’s handled properly. 
    With our multiple varieties of shipping vehicles to ensure your products are delivered properly, our skilled and experienced team of carriers, and our ability to carry inventory for a wide range of industries and situations, you can trust Next Exit Logistics to be the third party logistics provider you need to get the job done. Contact us today to learn more.

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