Third Party Logistics Company and Its Role in Shipping Goods of Your Business

Third Party Logistics Company And Its 5 Roles In Shipping Goods

Third Party Logistics Company and Its Role in Shipping Goods of Your Business

Fulfillment is one of the most complex and important aspects of running your e-commerce business. As consumer demands continue to change, there is pressure on e-commerce businesses to keep up to meet these demands.

Even though you can manage your logistics when you are a small company, at some point in time, you will need to consider outsourcing this supply chain process.

Outsourcing your logistics to a third party means that you will hire a third party to manage and handle the fulfillment process, including packaging items, storing the inventory, and shipping your orders.

Third-party logistics companies also called 3PLs, offer the services needed to outsource your company’s fulfillment. Let’s look at some of how Third Party Logistics conducts the process.

1. Integration with e-commerce platform

E-commerce businesses mostly utilize more than one channel for selling their goods. So to be able to do this, the IT for your warehouses needs to be robust.

A good Third Party Logistics company will be able to integrate smoothly with your various e-commerce platforms and support all your channels of selling goods. Moreover, this also allows you to track your orders in real-time.

2. Management and storing of inventory

A Third Party Logistics company is experienced and knowledgeable in the field, and they know how to manage and store your inventory. They apply their experience in helping you manage your stock.

3. Packing and shipping

In addition to picking, packing and shipping are integral to the fulfillment process. When a consumer places an order on your e-commerce platform, this order goes to your warehouse.

Over there, your order is picked from the shelves of the warehouse and then packed in the right boxes for the goods. At this point, the shipping label is also attached to the box. Once it’s ready, the shipper will ensure that your order is shipped by the right carrier.

4. LTL & FTL freight shipping and receiving

Less than truckload (LTL) and full truckload (FTL) shipping for middle mile freight are important tools for money-saving, especially if you deliver large orders to commercial consumers or wholesale retailers.

This service can also be utilized to deliver goods between warehouses or to a distribution center. A Third Party Logistics company can arrange these LTL or FTL fleets according to your freight shipping while also helping you find the best deals.

5. Reverse logistics

Reverse logistics is a term for returns, which is a reality in the e-commerce business. The third-party logistics company you hire can also handle and process the returned goods for you with the help of returns management software like this: https://www.reverselogix.com/industries/ecommerce/

The return rate for your business depends on several factors, like the type of goods you sell. The process of reverse logistics involves assessing the returned goods for damages to determine whether they can be put back on the shelf on not.

Conclusion

Using Third Party Logistics will improve your supply chain process. You will source the goods to be sold on an e-commerce platform and invest in raw materials or goods before making sales. Your goods will then ship to the warehouses of your 3PL company, where your inventory will be managed and stored.

This inventory will be available on your e-commerce platforms, where consumers can place orders. The orders go directly to the 3PL warehouse, where they are picked, packed, and shipped through the right carriers to your customers.

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