Three Points for Effective 3PL Services

Third-party logistics (3PL) companies rely on a strong consumer economy to stay relevant and a great part of that success relies on 3PL’s ability to help businesses reduce overhead and work more efficiently.  Like many B2B services we see a clear connection here – when business thrives so does 3PL.  Therefore it is in our best interest to make sure we are concentrating on offering top 3PL services: warehousing, freight consolidation, temperature controlled storage, receiving & fulfillment and so forth. 

A third-party logistics provider who offers reliable services will have a strong focus on facilities, operations and technology.

Warehousing and Storage Facilities to Meet Diverse Demands

One of the most important elements of a 3PL company is having the necessary space to handle a customer’s inventory.  That low-cost provider might seem attractive, but are their facilities going to be able to accommodate a spike in customer demand?  Not all third-party logistics companies aim to be the go-to provider for the biggest retailers and largest shippers.  Though, when choosing a 3PL company they should demonstrate that they have the facility requirements plus some to handle fluctuating demands.

When you trust another company with your inventory you do not what any surprises.  In many situations facilities are designated for one client, other facilities are a shared space.  Does the 3PL provider own their facility or is it being leased?  Complete third-party logistics providers will also provide a standard storage space along with temperature controlled warehousing that affords constant monitoring.  A review of docking facilities provides a good idea of how quick and effective receiving and turnaround times might be.  In addition, a third-party logistics company should have a wide range of equipment designated to handle all types of sensitive materials.  Pallet space, warehousing, docking and equipment are all keys to proper facility management and efficient 3PL services.

Operations: The Pillar of Third-Party Logistics

Operations means tracking you inventory throughout the entire third-party logistics process – every transaction, every item.  This is usually facilitated by a warehouse management system (WMS).  The best systems have demonstrated success with third-party logistics companies and provide clean documentation along with concise data over all inventories.  This is how a 3PL gives you the peace of mind that products are getting to where they need to be on time, keeping your customers happy.  The best 3PL providers give you the information you need and nothing in excess. You should feel confidant your inventories are stored secure and shipped on time.  

Personnel are also another key element to operations.  Responsible and knowledgeable employees usually mean that your products and inventory are in good hands.  Employees who strive to meet high standards understand that their futures rely on your success as a business.  From tested controls systems for warehouse management to personnel – executives on down – these are all central elements to a reliable third-party logistics provider.  

Investing in 3PL Technology

Facilities and operations are essential to providing effective 3PL solutions that save businesses money on inventory management.  Though, everything is tied together with technology.

We live in an age were technologies are moving faster than most people can keep up with.  This is great news for the third-party logistics providers.  Businesses are relying on 3PL because they are masters of efficiency.  While businesses are adopting technologies that lead to growing supply chain demands 3PLs need to follow suit.  A smart third-party logistics provider is always planning and researching to see in what direction the technology landscape is moving.

Third-party logistic companies that have invested in advanced technology infrastructures allow high-volume retailers and shippers to worry less about managing inventories and focus on business initiatives.  Better technology means more information in front of the customer, an improved relationship and fosters trust.  Cutting edge 3PL technologies give customers on-demand insight into what is happening with their inventory.  A trusted 3PL company will provide a customer with the needed resources that makes gathering data easy, while integrating that data into their strategic business planning.  Better technology brings everything together making the process work with total fluidity for 3PL and their customer. In the end both parties spend less time dealing with minor details and more time improving service quality.

A reliable and professional third-party logistics company is made up of many elements.  Those elements can be broken down simply into the three core components of facilities, operations and technology.  With facilities that can meet diverse demands, proven operational procedures and the technology to put it all together, businesses can be assured they have found a quality 3PL partner.

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http://www.inboundlogistics.com/cms/article/choosing-a-warehouse-managem...