The term 3pl stands for third-party logistics. Simply, it refers to assigning the logistic services to another company. This function is not necessary but so beneficial for a company that sends many packages and parcels to clients. If a company intends to fulfill the entire orders in its headquarters, this would be so costly and takes much time, which affects the revenue and the timing consequently. Therefore here comes some companies that fulfill the orders on behalf of you.


The different types of third-party logistics (3PL)

Some 3PL may contain only the storing and shipping items. It needs some warehouses and certain vehicles to keep and dispatch the items as it is planned. Also, there is another type of 3PL, which provides not only the mentioned cases but offers some management services like supply chain management.

3pl-partners can play an important role in supply chain management through some service providers which present the major fulfillment operations such as packaging, storing, delivery, and the ultimate fulfillment in 3pl warehouses. Also, these service providers can find and determine the gap in the supply chain and try to fill it as much as possible by offering some solutions such as marketing strategies or delivery management services.

third party logistics

How third party logistics work?

Carrying an item from point A to B looks a little simple, but imagine you are supposed to carry something heavy (for example 100 kilograms) for a long distance (for example three thousand kilometers) while many unexpected accidents (earthquakes, floods, pandemics, and so on) await you to fail your mission. Transportation is a professional task that should be performed by predicting any possible thing and being prepared for any weight and distance varieties.

Also, every business especially the small ones, doesn’t have warehouses to store their goods. Even if they have one, it is not big enough to contain big items or numerous products. Here the 3pl comes again! 3pl providers offer warehouse rooms for small businesses. It causes fewer expenses in warehousing functions and also it may improve the availability of the goods to the transportation service or to the customer.

Related article: Four Logistics Trends to Watch In Canada

What is pick and pack fulfillment?

When the warehouse is short of your products, your business should mind uploading some to the warehouse. But in case this process takes longer and you have some awaiting orders, the 3PL services providers should save you as quickly as possible. here the “pick and pack fulfillment” is brought up and should be done by the service provider. During this function, the 3PL company comes to pick up your item and packs it immediately according to your standards, and fulfills the order by dispatching it to your customer as soon as possible.


The necessity of 3PL (third party logistics) in the business

Any kind of business whether small or medium, can’t focus on all functions of the company; better say it’s impossible to handle all the operations in an optimum way. Many functions and operations are assigned to other professional teams (third-party roles). This can economize some costs in the company as well as help to concentrate on the major mission of the business.

Another remarkable advantage is of course the third-party logistic role in international marketing. This 3PL service is provided by companies that store and fulfill your business orders abroad. These services are less costly and more available than other solutions. Here we list the most important expected 3PL influences on a business.


Focus on the main mission

As said before, by assigning this operation to a third-party company, your business gets rid of some excess responsibilities (which could be better done by other teams). Consequently, this causes more focus on the core mission and goals of the business.

Read more: Is it the right time to change your 3PL provider?

Saving more money and economization

The third-party logistic services are of course a wide network specialized in supply chain functions and management. Gaining these skills is not possible or it is costly to reach for a small business. The major effect of these services is that your business undergoes fewer costs due to outsourcing the costly operations to a company that knows how to perform them with fewer expenses. Thereby. Your company saves money to expend on your main activities.

Related article: E-Commerce Order Fulfillment; How the Supply Chain Has Evolved

Growing the client base

By giving access and connecting your business to the less available markets by 3pl solutions in supply chain management, your client base develops and expands gradually. Entering new production and presenting it to a new market is not duck soup; it’s a professional task and takes many times to localize it in the target market. Of course, an efficient management strategy can facilitate the process for your business and let you focus on producing the items rather than worrying about how to present them in a new market.

Read more: What is the Cost of Land in Logistics? A Complete Landed Cost guide

The customer satisfaction

Naturally, a company that specialized in fulfillment of the order can obtain much more satisfaction from the customers. A third-party logistics service provider knows how to impress the customer. The packaging, the timing, and the delivery services such as tracking and surveys can guarantee a successful order and get customer satisfaction.

third party logistics
A way to international markets

As explained before, by outsourcing the marketing affairs to a third-party logistics company, it is possible to benefit from the logistic management services which can help your business reach the international markets more easily. As it can fill the gap the supply chain management, your business has the opportunity to present itself in new markets, and it is not possible without considering some logistic strategies to ensure safe order fulfillment.

Learn more about: Courier Service in Canada

The final word

In case you have any questions or you need a consultation about the third-party logistics, feel free to contact the DelGate group in Vancouver BC, and Montreal Canada. Also if you have any inquiries about our services never hesitate to leave us a message, the DelGate company provides you with the optimum solution for your demands and offers you the best consultation by an experienced staff who are specialized in logistics and delivery affairs.  

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DelGate is a Third-Party Logistics that provides Warehousing, Order Fulfillment, Container Transloading, Trucking, Rail service, Intermodal Transportation, Final Mile and Home Delivery.

101-2388 Canoe Ave Coquitlam,BC​
+1 833 335 4283  DelGate