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HomeBusinessWhat Is A Third-Party Logistics Provider?

What Is A Third-Party Logistics Provider?

Third-party logistics providers (3PLs) are companies that specialize in helping other companies move and store their goods through specialized services such as warehousing, freight transportation, fulfilment, and more. 

Whether you’re an e-commerce company that ships orders from multiple warehouses or a business with thousands of employees across the country, 3PLs can help your company save time and money by handling these necessary logistics functions for you. Learn about how 3PLs work and what they can do to help your business succeed today!

Third-Party Logistics Providers: The Basics

You’ve got your own business to run—trucking, loading, unloading, researching new shipping options. When it comes to getting all that done, you can choose from two different routes: hiring your employees to complete these tasks or outsourcing them to a third-party logistics provider (3PL). 3PLs provide transportation services for companies of all sizes—with much of their workforce coming from independent contractors.

A Practical Guide for Shipping with 3PLs

If you’re shipping goods to customers regularly, using a third-party logistics (3PL) provider can be incredibly beneficial. Here’s how 3PLs work and what they can offer your business. 

A 3PL is an organization that specializes in helping companies ship their products. They provide transportation management, distribution management, and order fulfilment services for businesses at a variety of scales, from large retailers with tens of thousands of SKUs to small eCommerce stores that require just a few shipments per month. 

In other words, they help streamline your shipping process and save you time and money by providing additional resources to manage aspects of your business. If you’re thinking about hiring a 3PL or have questions about how they work, here are some tips on what to consider when selecting a company. 

A Third-Party Logistics Provider’s Role

3PLs play an important role in business operations by managing everything from shipping directly from suppliers to handling returns or exchanges for customers. They can also provide support with warehousing, order fulfilment, inventory management, transportation management, and more. 

Third-party logistics providers can help businesses of all sizes with their shipping needs—whether they need to manage just a few shipments per month or thousands of them each day. It’s important to remember that not every 3PL will be right for your business, so it’s important to take time when selecting a company that fits your unique needs. 

Here are some questions you should ask potential 3PL partners: 

1) What services do you offer? 

2) How much experience do you have in my industry? 

3) Do I have full control over my shipments or will there be additional steps involved?

How to Choose the Right One for You?

If you’re in business for yourself, it can be difficult to hire, train, and pay employees. While there are pros and cons to hiring an employee for your small business, there’s no question that outsourcing your shipping gives you more time to focus on growing your company. 

Many of our customers outsource their shipping to us because they trust us. If you want to overcome these issues, you can outsource your logistics to companies such as Prestige Logistics Group. Hence, you can focus on your core business activities.