11 Ways 3PLs are Helping Retailers & Manufacturers Today3PLs Help Improve Profitability of Retailers & Manufacturers
Today, 3PLs have taken on a much wider role in the supply chain industry, that of collaborative partner. Acting as an extension of their clients’ businesses, 3PLs bring considerable expertise to reduce supply chain/logistics costs and to provide a broad array of
Expanding the 3PL-Client Relationship with Value Added Services
Because of the breakneck pace at which today’s retailers and supply chain
These multiple methods that consumers use to research, shop for and connect with brands is known as omnichannel retailing. The consistency of the consumers’ brand experience across the various platforms and brick and mortar store is critical. Typically consumers relate their brand experience to how long it takes to get the goods into their hands. Related to this are supply chain and logistics processes and concerns. Not all infrastructures are ready for omnichannel retailing. Is yours?
3PLs often act as the face of the retailer, providing customer service support, processing returns and conducting other activities on behalf of retailers, both e-commerce and brick and mortar. These consumer-facing services need to be seamless representations of the brand experience. 3PLs can be ideal partners when dealing with omnichannel retail concerns. They can establish a common inventory system across all the various channels and use a common system to determine which channel from which inventory will be pulled, based on necessary parameters such as delivery methods and zip code.
Here are a Few of the Ways in Which 3PLs Help Retailers and Manufacturers
3. 3PLs can help scale operations, upward or downward to meet seasonal demand or the aggressive growth spurt of a business. Outsourcing to a 3PL enables its clients to have more control over their business without the delays and hassle of hiring and training workers. This is especially important for seasonal businesses as well as for companies that are growing in specific geographic areas. Outsourcing also reduces the outlay of capital for facilities, software such as warehouse management systems, telephone
4. 3PLs help expedite new products and get goods to market faster. Using 3D printers, some 3PLs are printing parts and prototypes for their customers to test.
With the consumer appetite for fast delivery and immediate order of new products, being able to test market prototypes and get goods to market faster provides a distinct advantage. Whether it is a new product launch,
6. 3PLs can handle reverse logistics and returns processing. In dealing with goods that have a high rate of returns such as apparel and electronics, using a 3PL can have distinct advantages and eliminate unnecessary headaches. Some of the activities associated with returns processing are cost competitive and can include inspection and testing, refurbishment, etc.
10. 3PLs help their clients reduce business risk. By outsourcing activities to 3PLs, clients are able to reduce risks associated with issues such as compliance, environmental issues, workers compensation, unionization and EEOC.
11. 3PLs act as strategic partners in global logistics. Selecting a 3PL with specialized expertise and experience in intercontinental freight forwarding can provide considerable cost savings and peace of mind. Many large multinational corporations are segregating the 3PLs they use by the services they provide as well as by the manner in which they will interact with them. This enables the centralization of logistics management and expertise and minimization of vendors used.
3PLs involved in the centralized group of logistics providers are typically considered to be Tier 1 logistics providers are hired to help optimize transportation networks and act as strategic partners. Tier 1 3PLs typically offer a broader range of services including warehouse management and transportation management and use technology to provide supply chain visibility, data analysis