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Why Successful E-Commerce Companies Use Logistics Suppliers

Here are some of the biggest benefits you can reap when you work with a logistics supplier

In e-commerce, logistics service 3pl providers have become key players in the e-commerce supply chain. While many brands start out fulfilling and shipping orders themselves, fast-growing brands or those planning to grow recognize early on that there are significant benefits to outsourcing fulfillment and logistics. Failing to take advantage of these benefits leaves money and opportunities on the table. Here are some of the biggest benefits you can reap when you work with a logistics supplier

 

Ensure growth

A reliable logistics supplier is a key part of growth. Business owners often find that fulfilling and shipping orders themselves is unsustainable in the long run and find that there are hidden costs (e.g., warehouse purchases, labor, high freight costs, shipping insurance and packaging materials) that can gradually reduce profits and hinder their ability to grow.

 

By delegating costly and time-consuming logistics management tasks to 3PL services, you can free up valuable time for other profit-driving functions such as marketing, customer engagement and product development, while improving profitability.

 

Partner Network

Top logistics suppliers have a range of partners and integrations to help in virtually every aspect of e-business logistics to create end-to-end e-business solutions. These partners specialize in logistics-related tasks such as inventory and order management, custom packaging, returns management, and more. On the shipping side, the right 3PL will have strong connections with major carriers to secure volume discounts on shipping costs so you can pass the savings on to your customers.

 

Industry Experience

World-class logistics suppliers have years of experience working with thousands of e-commerce businesses, so they can provide the knowledge and support needed to help you make better decisions as you expand your business. For example, an experienced 3PL can help you decide where to store your inventory so you can reach your customer base faster and more cost effectively.

 

There are many moving parts in the retail supply chain, so partnering with a logistics supplier that has a knowledgeable customer support team can also help you solve problems quickly so you can focus on other important business needs.

 

Workflow optimization

The right logistics supplier can provide the infrastructure and technology to optimize your supply chain and streamline workflows and processes through distribution services to meet local and global logistics needs. By leveraging 3PL’s powerful infrastructure, you can automate many time-consuming logistics tasks and speed up the time it takes to complete and ship orders.

 

By connecting your online store to 3PL’s technology, orders are automatically sent to the nearest fulfillment center where inventory is stored. From there, the retail fulfillment process begins as fulfillment specialists pick, pack and ship the order to your customers. The 3PL service also oversees the entire transportation management system for each order that enters and leaves the warehouse.