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What Is 3PL and How Does Third-Party Logistic Providers Work

As an entrepreneur, selling products and receiving payment is not the end. Upon a customer paying for the products, they expect you to deliver them to their residents. You have a responsibility to ship items a customer purchased in your organization. However, you may not have the facility to fulfill this objective.

Particularly, when you’re running an e-commerce venture, you receive customers across the globe. You do not have a logistics company or facilities to deliver products to these customers. Despite this, the end of any transaction is a reception. Your customer must receive what they ordered and paid in your store. For this reason, you need to get out and find a company or a partner to help you meet these needs. So, what is 3PL?

What is 3PL?

The third-party logistics or 3PL is a company that connects the seller and the customers. It is the company or an organization that provides logistics and another crucial service in the supply chain system. For instance, if you are selling automobile spare parts to customers in India, you can hire a shipping company to deliver them. Or else, you want some raw materials from Japan.

Your suppliers can involve a third party that provides shipping and logistics services. In a simpler language, the 3PL company is a person or an entity which is not part of your transaction. Rather, they are intermediaries facilitating the trading between a seller and the consumer.

How does a third-party logistics provider work?

As you know, the success of your business is offering quality services to the customer. Delivering the items bought from your business is the core of this equation. Even though you have the best items, your delivery rate matters a lot. Your customers expect you to deliver what they purchased within the shortest duration as possible.

Unfortunately, having all resources for effective shipping and order fulfillment is a challenge. You may not have adequate facilities tosetup a reliable logistics system. For this reason, you need an intermediary who can take over these responsibilities. Here is where the third-party logistics provider comes in. These companies offer several services such as transportation, warehousing, and delivery.

Summary

In a word, 3PL is an entity helps you as a webpreneur to deliver your items they purchase from your online stores to their residents. Also, they help you to complete the last step in the selling process – delivery.

By | 2019-02-11T16:45:01+00:00 February 10th, 2019|BLOG, Uncategorized|0 Comments