Partner With a 3PL: The Inside Scoop of a Logistics Service

The world of logistics is difficult to understand. As a small business owner, it’s important to take advantage of opportunities that save you money and satisfy your customers. However, selling and managing your products can be a stressful process on your own.

At Lake City Logistics, we believe that teamwork, honesty, and communication are all essential values when running logistics operations. In our industry, we work as a 3PL, or a ‘third-party logistics’ company, that partners with businesses like yours. Before making any business decisions, explore more about what a third-party logistics is.

What is the definition of a 3PL?

A 3PL serves as a logistics service company that helps you manage, store, deliver, and transport your products from start to finish. Instead of small businesses relying on themselves, a 3PL creates a smoother process for the supplier and customer during supply and demand.

According to Caliber.global, “In many industries, third-party logistics shipping is a core component of supply chain operations, ensuring that materials and products move efficiently between suppliers, warehouses, distribution centers, and final destinations.”

 What are the responsibilities of a 3PL?

There are many aspects to 3PL companies. Here are some of the responsibilities of 3PLs explained by Forbes.

First, 3PLs store and secure all products at a Warehouse for eventual logistics transportation. 3PLs work with many clients, so the warehouse will often be separated with a space provided for each company’s items.

While storing a company’s products, 3PLs will also handle the inventory. The shipping center will track products and explain to their clients important information. This will inform companies about what they need to order for their items and what they might be low on.

When products are packaged by a 3PL for delivery, they label all items and prepare them for the carrier. This also involves kitting, or packaging numerous products together in a pack for customers.

After a product is delivered, sometimes customers will end up returning items. 3PLs handle refunds and returned items, so they are restocked and sent to the shipping center. Additionally, 3PLs manage the transportation of goods. According to Caliber.global, 3PLs direct

logistics transportation across many sectors, including by rail, ocean, road, and flight.

Throughout these modes, they use sophisticated technology to track timelines for shipping,

observe the shipment process, monitor levels of stock, and examine logistics.

What are the benefits of a 3PL?

In an uncertain economy, according to Forbes, 3PLs provide a range of benefits for small businesses.

For instance, when businesses work with 3PLs, more products can be stored in shipping centers. This allows companies to keep a higher number of goods in storage, lowering costs for items that are sold.

Furthermore, orders can be delivered more efficiently through a logistics service. 3PLs track shipments and, in the meantime, provide more control of the logistics for the company.

Altogether, this leaves clients with a more reliable and effective method for managing their goods.

Another benefit of 3PLs is that they apply data to logistics. This is helpful when businesses need to make evidence-based decisions.

According to Unishippers, 3PLs “strengthen forecasting and planning using market data, lane insights and historical trends.”

They also provide an understanding of changes in regulations and tariffs. This guidance also extends to helping businesses with their budgets. 3PLs “protect budgets by auditing invoices, flagging overcharges and identifying hidden cost drivers,” Unishippers said.

Build A Relationship with Lake City Logistics

3PLs are experts within the field of logistics. Without them, businesses may not have a structured organization for their shipping that runs efficiently. As a small or medium-sized business, consider partnering with a logistics service such as Lake City Logistics to ensure your products are delivered on time throughout the logistics process. From start to finish, we work hard to ensure top-quality service for your customers and adapt our strategies to fit your business. Contact us at info@lakecity-logistics.com to learn more about the services we can offer you.