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E-Commerce Is Growing Exponentially. What Are The Advantages Of Having A 3PL (Third Party Logistics)?

The Hot Sale 2022 is approaching and if you want to take advantage of this digital event organized by the AMVO and that according to this Organization generates more than $18.5 million pesos in online sales throughout Mexico, it is important to have your communication and operation prepared in advance.
M - ventajas 3PL

One of the preparations is to boost your logistics, digital marketing and sales channels for this high season. high season.

An excellent strategy is the alliance with a 3PL operator.

We are talking about a service model oriented to support you in the logistics processes that include transportation, inventory management, order preparation and delivery of your products.

Whether your company is small, medium or large, or if it is a start-up or an established company, a 3PL operator can be your partner in optimizing logistics costs, as well as an enabler so you can grow at an accelerated pace while meeting your customers’ inventory availability and delivery times.

Having a 3PL is key so that you have visibility of your inventory throughout the supply chain and can make sourcing decisions so that you always have control of your merchandise.

So what does a 3PL do? What are the advantages of a 3PL for your business, especially in peak seasons?

What does a 3PL do? 

Let’s start by saying that 3PL refers to a very particular model of logistics services

3PL stands for Third Party Logistics.
Third Party Logistics
Third Party Logistics or outsourced logistics. 

A business model through which your company hires the services of a specialized provider to take care of the transportation of your products (1PL), warehousing (2PL) and the optimal management of both tasks. 

According to the logistics and technology consulting firm GEP’ s expertise, best practices and technological approach that characterizes 3PL operators allow them to solve the challenges posed by abrupt increases in peak e-commerce periods in Mexico such as Hot Sale , Black Friday, Christmas or New Year’s Eve, Buen Fin

Black Friday, Christmas and New Year’s Eve. 

The term 3PL came into use in the late 1970s and early 1980s when large companies began to outsource their logistics in order to grow their businesses, and has reached its peak in times of booming e-commerce

A good outsourced logistics service represents a comprehensive service offering in packaging, warehousing, transportation, order fulfillment and other operations in B2B and B2C business supply chains.

More than a logistics service provider, a 3PL operator becomes a tactical and strategic partner, a company to which you are handing over a very important part of your business.     

How can a 3PL operator boost your business? 

As the owner of an SME, a startup or an online store, 3PL logistics represents the platform to expand your geographic reach or customer base, without having to make costly investments. 

Expanding geographic reach, even exporting, can be overwhelming; so can responding to a boom in peak season orders. 

A 3PL operator addresses these challenges on a daily basis; working with customs brokerage, freight forwarding and multimodal consolidation; taking care of all the paperwork so that you can focus your efforts on strategic activities, such as making more sales or keeping your customers satisfied.

Other benefits and advantages of a 3PL model for your business:

A 3PL logistics operator saves you costs

The infrastructure and logistics network of a 3PL operator is prepared to cope with rapid and significant increases in the volume of warehouse operations and shipments.

This allows you to save large outlays in storage space, infrastructure, specialized software, loading vehicles, maneuvering, fuel and transfers. 

A logistics operator is characterized by maintaining an important network of commercial transportation partners, customs procedures, warehouses in different locations, strengths that allow them to respond quickly and efficiently.

As experts in leveraging your order volumes and frequency, a 3PL has high bargaining power and can achieve better commercial conditions to the benefit of your company. 

Improved inventory management

Large inventories with multiple SKUs can lead to high costs and risks such as expiration, obsolescence, stock-outs and ant theft. 

Forecasts and sales projections are part of the functionalities of 3PL logistics software and applications, allowing you to better adjust your inventory levels and the costs that their management and storage represent. 

They also help you manage your orders and avoid harmful stock-outs that result in loss of customers and competitiveness. 

Transfer of knowledge and expertise 

If anything, it has eCommerce and its platforms was to expand both the geographic reach and the expectations of a digital customer, one that demands more and more attention and quality of service. 

In addition to deploying its logistics capabilities and its investment in information technology, a good 3PL service provider has expertise in: 

  • Supply Chain
  • Traceability
  • Order management
  • Warehouse control 
  • International legal framework
  • Exports
  • Imports
  • Customs
  • Taxes and procedures before the SAT

Frequent liaison with a 3PL partner saves you the stress or pressure of having to comply with stringent shipping, tariff and handling standards in
international logistics. 

Whether you are looking for global deployment or simply expanding into other markets, you can leverage that experience, for faithful national and international compliance and to meet the growing expectations of foreign corporate and individual clients. 

The ability to scale your operations

IBM defines ‘scalability‘ as the ability of a business or system to cope with a significant increase in demand or operations, without sacrificing quality of service. 

This is precisely what you gain through third-party logistics, since the infrastructure and network of a specialized provider allows you to circumvent high seasons and scale resources such as: physical space, warehouse, personnel, fleets or maneuvers. 

All without having to invest heavily and then underutilize these capacities in the off-season.   

3PL is the flexibility, agility and scalability you need, always adjusted to the pace of the market. 

Improves company image and customer experience

All the advantages and benefits of a 3PL described above result in: 

  • Better delivery times
  • Fulfillment of expectations
  • Brand reliability 
  • Customer satisfaction and retention

And there is no better advertising and loyalty program than a satisfied customer. 

To conclude

 

Capitalize on the sales and benefits of the upcoming Hot Sale 2022 and other peak season events with the infrastructure, network, human capital and expertise of a good 3PL operator.

Dedicate your time and effort to enhance other areas of the business, scale your operations and improve the experience of your customers and users. 
ABC Logistics
accompanies you in this mission

 

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