Third Party Logistics 3PL Sydney
Third Party Logistics (3PL) in Sydney and across Australia
What is 3rd Party Logistics (3PL)?
3rd Party Logistics or 3PL is the outsourcing of logistics and distribution. A 3PL provider specialises in warehousing, pick and packing, order fulfilment and transportation services that can be scaled and customised to their customers' needs. These needs may vary according to market conditions and the demands and delivery requirements for their products.
Why should I use a 3PL provider?
Businesses use 3rd Party Logistics to take advantage of the expert knowledge of companies that specialise in logistics. Partnerships with 3PL suppliers who can take care of all your transportation needs allows you more time to focus on your own business.
What type of companies use 3rd Party Logistics?
The types of companies who use 3PL providers are varied. They recognise a need to reduce overheads to allow them to focus on their core business model. These companies see the benefits of outsourcing their warehousing and delivery to increase the efficiency and professionalism of their shipped items.
Online shopping and eCommerce businesses benefit greatly from 3PL . When customers purchase an item online, the issues of warehousing, pick and packing, shipping and tracking need to be taken care of 3rd Party Logistics is an important part of the supply chain management for eCommerce websites and online businesses.
Contact CoPak to find out more about 3rd Party Logistics (3PL)
Call 02 9604 6767 or email email@example.com
How to choose a 3PL supplier?
Selecting a 3rd Party Logistics provider is a decision that relies on a number of factors. These may vary from business to business, but the decision will largely be based on the company's plans for future products and expansion.
7 reasons to use a 3rd Party Logistics provider
Contact CoPak now to discuss your Third Party Logistics (3PL) requirements
- Seasonal Flexibility
If your business is seasonal or offers once-off specials, using a 3PL provider gives you to opportunity to scale your business up or down depending on the time of year. Warehouse space, employees and transportation can be provided during your peak season of business and this can all be scaled back during the quiet times.
- Try new markets
Trial new regional areas, states or countries where you currently don't have an office or factory. With your 3PL provider acting as a supplementary supply chain support, you can test new markets out prior to setting up a new office, factory or distribution centre.
- Start small
New businesses, ecommerce websites and online businesses need to start small so setting up your own distribution and logistics sector would be out of reach for most. A third party logistics provider can offer you the opportunity to start lean and scale up when required.
- Lower transport costs
With their significant buying power, companies who specialise in logistics have access to lower transportation rates due to their regular, large volume shipments. Their relationships with transport suppliers including couriers means they can negotiate very competitive transport rates for their customers.
- Reduced capital expenditure
3PL providers can save your business money on equipment, storage space, packaging, employees and distribution centres or factories. Without these capital costs, can expand your production without any limitations.
- Greater efficiency
Your inventory will be managed with great efficiency and professionalism when you use a 3PL provider who has more advanced inventory software and processes than your in-house capabilities.
Logistics is always evolving as technology improves. A good third party logistics provider will stay up to date with the latest hardware, software and equipment to keep up with the industry as logistics is at the core of their business.