Warehousing and 3PL services are a crucial component of most ecommerce businesses’ business operations, ensuring that products reach customers as quickly and efficiently as possible. These processes can be complicated, and in many cases, a company may need the help of an expert third-party logistics provider to ensure that their orders are fulfilled accurately and on time.

 

The benefits of logistics network design are many and varied. For one, they can help businesses scale and grow. In addition, they can also help a company save money in the long run.

 

Cost Savings

For many companies, the primary reason to use a third-party fulfillment service is to reduce costs. This is due to the fact that 3PLs can negotiate better shipping rates and spread out their overhead costs, like building expenses, compared to a single-location seller. In addition, 3PLs often have a larger network of warehouses than individual sellers, which means they can offer discounts on warehouse space and shipping services.

 

Scalability

For online retailers that are looking to expand their product offerings to new markets, a 3PL can help them do so more easily. A good 3PL will have facilities across multiple countries, allowing them to handle international orders from multiple regions.

 

Inventory Management

Having access to real-time, multi-location inventory visibility is an essential part of running a successful eCommerce business. This includes the ability to see stock levels at each of your third-party warehouses and push those updates back to your ecommerce website, so you can keep up with customer demand and avoid inventory shortages.

 

Automation

Using a 3PL can help you automate a number of your operations, including order picking and packing. This can help you save money on labor and can also speed up the process of handling large orders. For example, Ocado Retail used robotics to handle its entire pick and pack operation without having to rely on human staff.

 

In addition, 3PLs have the resources to handle high-volume shipments, which can be tricky for small and medium-sized businesses. They can provide extra staff and resources if necessary, which can help businesses meet customer expectations for shipping speeds and prices.

 

Cross-Border Solutions

With the supply chain crisis and the rise of international shipping, ecommerce companies are becoming more complex to manage. This has led to a growing demand for full-service 3PLs that can handle the complex logistics of international shipping and delivery.

 

As a result,distribution network design have invested in advanced technology that allows them to track inventory and other vital data from one location to the next. This helps them make informed decisions about how to respond to the complexities of the global shipping landscape and how to prevent delays in shipments.

 

These innovations allow a 3PL to provide a more efficient and reliable service for ecommerce brands, which can help them increase sales and gain a competitive edge. They can also assist a business during and after supply chain emergencies, such as hurricanes and tornadoes.Learn more about this article in the follwing link:https://en.wikipedia.org/wiki/Supply_chain_management.