What Services and Functions Does Third-Party Logistics Provide?

Jan 31,2024
Industry News
Are you always unable to achieve fast and accurate delivery of goods? Do you want to solve problems such as high logistics costs and low logistics efficiency

Will your company's logistics costs be relatively high due to the lack of professional logistics management and economies of scale? It is always impossible to achieve fast and accurate delivery of goods, and unable to respond to customer needs in a timely manner? Want to solve the problem of high logistics costs and logistics problems? Are there problems and difficulties such as low efficiency, difficulty in risk management, low customer service levels, and difficulty in expanding international business? Please follow this article to find suitable solutions and find an answer to your questions.

The services of third-party logistics service providers include but are not limited to the following:

Logistics and transportation

Third-party logistics service providers focus on comprehensive management of the transportation process, covering the entire process of shipping and receiving. Third-party logistics service providers also manage carrier relationships, freight data and matrix reporting to enhance real-time visibility and transparency into the shipping process.

Warehouse management

3PL provides warehousing services, including the management of goods entry, storage, and exit.

Transportation and distribution

3PL provides transportation and distribution services, including cargo loading, transportation, distribution route planning, etc. Many 3PL organizations also offer a variety of distribution and wholesale services, including outbound order fulfillment, picking and packing, custom labeling, and manufacturing. By outsourcing delivery to a third-party logistics provider, its employees can focus on other core competency business tasks.

Logistics planning

3PL customizes personalized logistics solutions for customers based on their needs and the characteristics of the goods, including transportation methods, packaging methods, distribution methods, etc.

Information management: 3PL provides logistics information management services, including order management, inventory management, logistics cost settlement, etc.

Value-added services

3PL provides some value-added services, such as cargo splitting, repackaging, labeling, product inspection, etc.

Cargo consolidation and consolidation

By consolidating small items into one package for transportation via LCL service, transportation costs will be significantly reduced. Service providers who ship various small packages as a single larger package are called consolidated service providers.

Returns processing and reverse logistics

Some 3PLs also provide services for processing returns, such as chinadivision. If a customer needs to return an item, a third-party logistics company handles the process, returning the item to inventory and disposing of it according to your wishes.

Supply chain optimization

3PL helps companies reduce logistics costs, improve logistics efficiency, and optimize supply chain management by optimizing all aspects of the supply chain.

The main role of 3PL third-party logistics

Help enterprises focus their energy and resources on their core businesses, and improve efficiency and reduce costs by outsourcing non-core businesses to third-party logistics companies.

Through professional logistics services, we provide flexible use of new technologies to exchange information for inventory and reduce costs.

Third-party logistics companies have professional levels and corresponding logistics networks that can meet the needs of potential customers of manufacturing companies and facilitate communication between manufacturers and retailers. And reduce unit transportation costs through economies of scale.

It can also help enterprises reduce fixed asset investment and accelerate capital turnover. And provide flexible and diverse customer services to create more value for customers.

third-party logistics

Third-party logistics helps enterprises optimize the allocation of resources and focus limited human and financial resources on core businesses. Take advantage of complete facilities and trained staff to achieve complete control of the entire supply chain and reduce logistics complexity.

Through the global information network, we can make supply chain management completely transparent for customers, help customers improve services and establish brand image.

The advantages of 3PL are not only saving time and money, but also providing customers with a better and more affordable experience.

Outsourcing various logistics functions such as transportation, warehousing and distribution to professional external companies to increase efficiency, reduce costs and improve the overall supply chain management of the enterprise.

Why do you need to cooperate with a third-party logistics company?

Reduce costs and improve efficiency

Third-party logistics companies can achieve economies of scale and professional operations, thereby reducing enterprises' logistics costs and improving logistics efficiency. Outsourcing logistics business to third-party logistics companies can reduce investment in logistics infrastructure and equipment, concentrate energy and resources on core business, and improve the overall operational efficiency and market competitiveness of the enterprise.

Optimize resource allocation

By cooperating with third-party logistics companies, enterprises can focus their limited resources on core businesses, thereby enhancing the enterprise's core capabilities. Third-party logistics companies provide comprehensive logistics solutions to help companies optimize supply chain management and achieve optimal resource allocation.

Improve customer service levels

Third-party logistics companies have rich logistics experience and professional teams, and can provide customized logistics solutions to meet the individual needs of customers. By partnering with third-party logistics companies, companies can quickly respond to customer needs and increase customer satisfaction and loyalty.

reduce risk

Working with third-party logistics companies can help companies reduce logistics risks. Third-party logistics companies can provide enterprises with comprehensive risk management services and help enterprises prevent and respond to various logistics risks.

Expand international business

Cooperating with third-party logistics companies can help companies quickly enter target markets and improve international competitiveness. Third-party logistics companies have extensive international logistics networks and experience and can help companies better meet the logistics needs of international customers.

Advantages of cooperation with 3PL fulfillment providers that provide e-commerce platform integration

Seamless order processing

Integration with e-commerce platforms ensures that orders on the website are automatically transferred to the 3PL system, streamlining the order fulfillment process.

Improve operational efficiency

The integration helps process orders faster and more efficiently, as the 3PL provider can access order details, shipping addresses, and customer information directly from the e-commerce platform. 3PL can provide comprehensive logistics solutions, including warehousing, transportation, distribution and other services, helping companies optimize and upgrade their logistics processes.

Improve accuracy and reduce errors

Automation through integration minimizes manual data entry and the potential for errors, ensuring the right products are accurately picked, packed and shipped.

cut costs

The automation and efficiencies gained through integration can save labor and operating expenses, and potentially reduce transportation costs through optimized logistics.

Real-time inventory management

E-commerce platform integration can synchronize inventory levels in real time, reduce the risk of overbooking, and provide customers with accurate information.

Improve customer service levels

Cooperating with 3PLs that provide e-commerce platform integration can help companies improve customer service levels. 3PL can provide customized logistics solutions to meet customers' individual needs and improve customer satisfaction. At the same time, through e-commerce platform integration technology, companies can better understand customer needs and feedback, and timely adjust and improve logistics services.

Expand sales channels

Cooperating with 3PLs that provide e-commerce platform integration can help companies expand sales channels. E-commerce platforms can help companies expand their sales scope and attract more potential customers. At the same time, 3PL can help companies achieve fast delivery and high-quality logistics services, improve customer satisfaction and loyalty, and further expand the company's market share.

Risk Management

Cooperating with 3PLs that provide e-commerce platform integration can help companies reduce logistics risks. 3PL has rich logistics experience and a professional risk management team, which can provide enterprises with comprehensive risk management services and help enterprises prevent and respond to various logistics risks. By cooperating with 3PL, enterprises can better manage logistics risks and reduce unnecessary losses.

Enhanced customer experience

Faster order processing and accurate inventory management help improve the overall customer experience, resulting in higher satisfaction and potentially higher customer retention.

Multi-channel integration

Integration with various e-commerce platforms enables businesses to effectively manage orders from multiple sales channels, whether it is their own website, marketplace or other online platforms.

Scalability and flexibility

E-commerce integration with 3PL providers allows businesses to seamlessly scale their operations to accommodate increased order volumes without a major system overhaul.