Learning about 3PLs and how they work?
When the economy grows, the 3PL’s concept becomes more and more familiar to businesses. At the same time, many enterprises were also born and became an important bridge between businesses and customers in the logistics field.
What is a 3PL company?
Third-party logistics companies (3PLs) are outsourced to meet the supply chain enterprises’ demand. This demand stems from the fact that not all businesses can afford to invest in a professional warehouse or build an efficient supply chain management apparatus. So, cooperating with 3PL businesses is considered the most useful solution.
What is the role of the 3PL in the supply chain?
The main goal of a 3PL company is to make the enterprise’s logistics easier, helping businesses better meet the consumers’ demands. 3PL company is in charge of picking, packing, transporting, loading and unloading, etc.
Most 3PL businesses have an extensive network across multiple geographies. Between these points, there is a close link with each other to best transport and manage goods. Besides, they have enough technology and experience to help businesses quickly adapt to any situation. Therefore, most businesses today choose 3PL companies without investing in a specialized department within the company.
How does 3PL manage inventory and track supply chain performance?
3PL businesses are always updated quickly and are ready to invest in optimal technologies. So, they always have the best solution in the logistics field. A typical case study, 3PL uses warehouse management software (WMS). This software provides visibility into the physical and non-physical aspects of the supply chain. Help companies manage the entire operation in the supply chain in the best way.
Blue Yonder Developer’s WMS Reporting System
What is the function of 3PL Warehouse?
The 3PL warehouse plays an important role in inventory management, warehousing, as well as fulfilling and shipping orders to customers.
Managing goods helps to provide an overview of all warehouse activities:
- The ability to display all information, all data in real-time
- Integrated with the shopping cart, constantly updating the item’s status. Avoiding shortage or inventory goods.
- When keeping the transaction log, track the location of goods, lot number, expiration date …
- WMS software helps identify and identify items/products being stored
Not only assisting in the management of goods in the software warehouse but also assisting in the delivery of goods:
- WMS keeps a close eye on all new receipts, packing and shipping are tracked through WMS
- Assign and track products and storage locations through the software’s automatic update feature
- Control supply chain logistics to ensure consumers receive products on time
- The rating system helps to provide analysis of the peak and low seasons of the year
Providing market knowledge
The 3PL company acts as an overview portal for the logistics industry in the context that every factor changes hourly from warehouse rental costs, transportation costs to customer expectations.
Besides, with nationwide and even transnational connectivity, 3PLs can assist in finding warehouses in different locations. 3PLs can leverage existing carrier relationships to make the transaction process faster and more cost-effective.
Providing industry expertise knowledge
3PL not only has strengths in technology but also 3PL has leading experts in the logistics field. As a result, the company offers in-depth service in each vertical. From analyzing and building industry overview coefficients to predicting future user trends. With extensive professional experience in each industry, 3PL services will help businesses find solutions and handle problems in the best way.
Improving supply chain performance
3PL provides a specialized view of the supply chain from which to find a faster and more accurate approach. Most 3PLs are equipped with advanced technology to track inventory, handle shipping and automate information transfers. Besides, with the application of specialized software such as WMS, P3L can help businesses find a more efficient and accurate workflow. With any service a 3PL performs, the ultimate goal is to create the most efficient and proficient process to better serve your customers and optimize their costs.
Nowadays, 3PL units have more and more new solutions to help businesses optimize their supply chains, so instead of investing in the cost of building a system from warehousing to personnel. Many businesses have chosen 3PL companies as partners to support all logistics activities and track through indicators in an objective and scientific way. This has gradually helped businesses optimize operational efficiency, especially during the difficult period of the Covid 19 pandemic.