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The benefits of a 3PL for retail order fulfillment are helpful to retailers who wish to improve their logistics process. A 3PL, or third party logistics provider, performs several vital duties in the supply chain. By partnering with a 3PL, retailers can focus more on their core business functions. While the advantages are substantial, setting up a successful 3PL partnership can come with its own challenges.
The International Warehouse Logistics Association has come to recognize the benefits of a 3PL for retail order fulfillment within the logistics industry. They offer retailers expertise in many aspects of the supply chain, such as:
This leads to cost savings and improved customer satisfaction.
In this article, we'll explore how 3PLs add value to retail fulfillment services. You'll also learn how Fulfillment and Distribution can meet your business's 3PL needs.
Table of Contents
What is 3PL in a supply chain? To put it simply, a 3PL service is like a trusted ally in the business world, making sure products reaches their destination consistently. In retail, 3PLs provide seamless storage and delivery of products, from the warehouse shelves to the customer's hands.
To better illustrate the benefits of using a 3PL, let’s take a look at the services they offer.
An experienced 3PL can take the bulk of complicated work off a retailer’s plate and execute that work with unsurpassed efficiency.
In addition to the services mentioned above, they also offer:
Returns are worth some additional scrutiny. With each passing year, American consumers factor the ease of returning products into their buying decisions more and more. Retailers need to have a streamlined return process to compete in the modern era.
To further reinforce the importance of efficient reverse logistics, consider the return rates for some items commonly sold via e-commerce.
| Clothing and Apparel | 10.01% |
| Jewels and Jewelry | 8.31% |
| Consumer Electronics | 8.28% |
| Sporting and Outdoor Equipment | 6.10% |
| Cosmetics and Beauty Supplies | 4.99% |
Source: richpanel.com
By incorporating 3PLs into their logistics strategies, retailers enjoy improved logistics and get to partner with experts who understand the nuances of the market. In the competitive and fast-paced retail landscape, having a 3PL on your side offers an edge against other retailers in your sector.
Get more details about how 3PL fulfillment works here.
The benefits of 3PLs really stem from their experience in a variety of logistics practices. Placing these related practices under one umbrella lets a 3PL provide consistent, retail fulfillment solutions.
The specific benefits of third party logistics require a more in-depth look to be properly appreciated.
Third-party fulfillment centers are experts at providing logistical solutions for modern supply chain needs. As such, they offer a wide range of advantages to retailers who want to improve the order fulfillment process.
Advantages of having a 3PL logistics strategy include:
The specific expertise that a 3PL partner brings to the table unites each facet of the logistics process. By addressing the challenges of retail order fulfillment, they allow retailers to concentrate on their core competencies, including customer satisfaction.
Find out more about the benefits of outsourcing fulfillment to a 3PL here.
Outsourcing logistics can have a direct, positive impact on your relationship with the lifeblood of your business: customers. Working with a 3PL company is a smart way to enhance your customer’s experience, from purchase to delivery.
These centers make sure every step in getting the product to the customer leaves a good impression. They pay attention to the small things and ensure that every product is delivered on time and in perfect condition. This turns casual customers into long term fans of your brand.
Here’s how a 3PL makes the customer experience better:
In short, 3PLs help create a bond between the brand and its customers. They make sure products are delivered according to your brand's quality and customer satisfaction standards.
From supply chain management to improved customer service, a 3PL can help you take your retail business to the next level.
At Fulfillment and Distribution, we have the experience and resources to address all of your retail 3PL needs. Our services include:
Give your business an advantage in the highly competitive retail industry. Call our team of logistics experts at (866) 989-3082 or request a risk-free quote online and get started on the road to flawless fulfillment.
