Here’s a Handy Guide to Third-Party Logistics Providers


Business growth comes with a set of challenges, especially with logistics. It becomes challenging to handle the influx of orders with internal resources. Thankfully, this is where 3PL providers can help. You can store your goods in their warehouse and optimize your business with their inventory. 

With the exponential growth in online purchases, the demand for 3PL providers has drastically increased. In fact, the industry is expected to become $1.3 trillion by 2024.

However, selecting the right 3PL can be a bit overwhelming. In case you are looking for a 3PL provider for your business, here’s what you need to know.

 What is a 3PL provider?

A 3PL is a partner that helps businesses manage their supply chain. Instead of buying or renting warehouses and managing the distribution process internally, you can store goods in their warehouse. They pick, pack and ship your products whenever an order is placed online.

3PLs receive the manufacturer’s fresh inventory and then ship the products to the consumers. They also manage retail distribution and returns apart from handling order fulfillment services.

 3PL makes the order fulfillment process more seamless and streamlined. This is why most small companies prefer to partner with the LTL shipping company in Houston. 

3PLs help businesses focus on other major business areas, such as manufacturing and selling products.

Major Services Offered by Third-Party Logistics Providers

3PL services can offer a wide range of logistics services, depending on the business size and type of products you sell. Usually, 3PL providers provide the following services :

  • Procurement:  Sourcing and receiving goods and services from the suppliers.
  • Order fulfillment: Receiving the online orders from the consumers, picking, packing, and shipping the orders to the consumers.
  • Storage: Receiving inventory from the manufacturer and storing them in the warehouse.
  • Transportation: Managing coalition, deconsolidation, management, and transport of goods.

Moreover, 3PL providers may also offer additional services like inventory management, reporting, reverse logistics, etc.

Why Should Businesses Choose Third-Party Logistics Providers?

There are plenty of reasons why companies may want to partner with the 3PL services. When the business experiences sudden growth, it becomes difficult to store the goods in the in-house warehouse due to their limited capacity.

 3PLs provide a safer and more reliable solution to businesses that experience challenges in storing their goods. Many businesses may also feel challenged due to increased transportation costs and the cost of buying equipment and vehicles.

3PLs offer managed transportation solutions from Houston to Nigeria and extensive resources and equipment at much more reasonable prices. Many businesses in the United States look to expand their business to other countries. Partnering with a skilled 3PL helps them deal with the various logistic challenges in the international markets. 

Benefits of Partnering with Third-Party Logistics Providers

  • Cost Savings

3Pls are backed by an extensive network of resources such as warehousing space, trucking, transportation fleets, human resources, and technology. This way, companies can benefit from their vast resources without buying and renting them.

  • Flexibility

 The best thing about 3PL providers is that they can adjust their services as per your varying business needs. For instance, if your company is witnessing an influx of orders due to holiday seasons, 3PLs companies can extend their services and labor to suit your needs and then resume to the normal levels once the sales are low.

  • International Reach

When a company thinks of expanding internationally, it may face several challenges in regulatory compliance, customs clearance, and communications. For instance, if you’re thinking of shipping equipment and machinery to Nigeria, 3PL providers can offer ocean freight services to Nigeria and help your business make a smooth entry using their vast global network and resources.

  • Customer Experience

 3PLs ensure faster and efficient delivery times, improved tracking and order status, prevent chances of damage or incorrect product packing, and more. All these factors contribute a significant value to overall customer satisfaction and retention and help you earn more profit and revenue.

Final Thoughts

 As your business expands, you will likely face several challenges such as increasing costs, increased logistics complexity, and varying customer needs. 3PL logistics is an excellent solution to get rid of all these challenges so that you can continue with the success of your business without any hindrance.

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