The growth in international trade has given momentum to the third-party logistics industry worldwide. 3PL providers offer complete logistics management, giving business owners the opportunity to focus on other aspects of their business such as sales and marketing.
The global third-party logistics market is experiencing a boom wheras it is expected to be worth $1.513 billion by 2025, which is nearly double its worth of 2017 ($869 billion). This unprecedented growth can be attributed to the development of the E-commerce industry.
3PL, or TPL as it is also commonly known as, implies the function that a manufacturer outsources certain activities related to logistics and distribution to another company. The 3PL companies have their own warehouses and distribution systems enabling an efficient supply chain and flow of goods.
A 3PL logistics company provides the following services to an E-shop:
- Inventory Management
- Packaging of goods
- The door to door delivery
Since 3PL companies have an expertise in their area of service, the demand for these services are increasing. In addition, it is also seen that E-shop owners need to focus on their business to meet the rising demands of their clients. Therefore, outsourcing the logistics management to a professional organization is evident to a convenient option.
As the business of an E-shop grows, meeting the demands of the customers becomes a challenge. This is because customers expect quick deliveries, and if the store fails to meet their expectations, the business could potentially lose its customers. Hence, it becomes imperative for an E-commerce business to have an efficient distribution network to ensure timely deliveries. Outsourcing the logistics to a 3PL company could be a way to solve this problem as these companies have a number of warehouses that are widely distributed all over the world that brings forth proximity to the customers.
Globalization has caused manufacturing activities to be set up in worldwide locations, whereas 3PL companies have become a big part of the process. The best 3PL logistics companies provide cost-effective and reliable services with the means of maintaining the supply chain to run smoothly due to their professional approach. One of the greatest benefits offered by a 3PL company is its chance of scalability. A business can scale up easily because the 3PL company is able to meet the growing demands required of the ecommerce business.
Although 3PL logistics solves a lot of issues related to managing an E-shop, the problem that a store owner might face is the loss of control over the logistics activities. However, that is not always the case…
Prime Penguin is a Stockholm based tech venture that connects you to a wide selection of 3PL companies that manage your logistics in a hassle-free manner while still offering you to have complete control over your inventory. With Prime Penguin, you can view the activities of your digital warehouse in real-time through your favorite device via a cloud-based platform. You will be able to get access to all the information and an overview of the activities, implying that you still have control of the warehouse. Prime Penguin uses a simple plug and play function, making it easy for you to integrate the platform with your e-shop.