Thursday, August 20, 2015

Importance of a 3PL Provider in Online Selling

Image Source: www.supplychain247.com
3PL (third party logistics) providers continue to make the life of companies selling their products online easier and safer. What is 3PL? TechTarget defines it as a “provider of outsourced logistics services.” A 3PL provider offers shipping, packaging and warehousing services. Without them, online shopping experience would run at a snail’s pace and customers wouldn’t like that. They are responsible for the delivery of the product right in the customer’s hands.

Last 2013, more than 80% of the online population shopped online. Internetlivestats.com says the number of online users last 2013 is 2.7 billion people. This is why some companies consider online selling a lucrative avenue than their physical shop. Customers are the main driving force on how this industry is shaped based on their needs and demands. Online shopping changed the concept of global trade and purchasing making it more complicated. This is where 3PL providers enter the picture.

It is not enough a company has a range of saleable products put up in their virtual store. But the most important factor that will make or break a business is how fast they deliver the product to their customers and its condition upon reaching the recipient. Why do some companies turn to 3PL providers?

Setting up an in-house freight management division will eat up your time and resources. You need to hire a competent team of logistic experts because they are the ones who will handle the most valuable asset of your company – your customers. They must see to it that every order is fulfilled in a safe and timely manner. This burden will be taken off once you hire the best 3PL provider. All you have to do is focus on your core competencies such as producing quality products and marketing them online.

How will you know your company and customers are in the right hands or right 3PL provider? Choose someone that specializes in your type of business. They must have a reliable 24/7 customer support that whenever a customer complaint arises, with regards to delivery, the 3PL provider should be reachable any time to address the concerns. In case there is an incident of damaged goods during shipping, the client company should be able to file a “return and damage claim” report. They value the role of an up-to-date system or 3PL technology that will seamlessly process their logistics operations. And their business strictly follows the latest and best industry practices.

Choose a 3PL company that you can consider as a business partner rather someone you just hired. You should be able to monitor the movement of your goods. If it is negotiable with your chosen provider, assign a person dedicated to monitoring. Don’t let the3PL provider have full control or you will be at a loss.

These criteria must be established during the selection process. Shopping for a 3PL provider is not an easy task. Choose a provider who is flexible, transparent and aligned with your business principles. In this way, you could have a harmonious working relationship with one another and, not to mention, your customers will be satisfied as well. 

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