16 November, 2021

Here’s how partnering with a 3PL company can help you cut down your logistics costs

Business people meeting to find analytical ideas pointing to the graph at the office.

Order fulfillment is a key part of running a successful product-based business. In the fast paced world that we live in, simply manufacturing quality products isn’t enough. Companies that provide the quickest delivery times are most likely to become market leaders and stand out among their competitors.

Due to the growing significance of logistics management, the world has witnessed a steady rise in companies outsourcing their order fulfillment to third party logistics providers, or 3PL. Studies show that companies who outsource order fulfillment operations earn 14% more revenue per employee compared to those who don’t.

What is a 3PL Company?

3PL, or third party logistics, is a holistic fulfillment service that includes a range of operations such as warehouse management, logistics, order management, returns management, customs, etc. Backed by years of experience, 3PL companies carry out these operations on behalf of their customers.

As a concept, 3PL is gaining a lot of momentum as the world moves towards higher and faster connectivity. Around the world, manufacturers and product-based companies are collaborating with expert 3PL companies to take care of their order fulfillment requirements and the results are outstanding.

Advantages of Partnering with a 3PL Company

Here are some of the most important benefits of partnering with a 3PL company:


Order fulfillment is one of the crucial aspects of a company’s supply chain. However, it’s also a totally different ballgame compared to procurement and manufacturing. Many companies that are experts in manufacturing quality products may at times struggle with logistics and vice versa.

By partnering with a 3PL expert, you can gain the benefit of their years of experience. 3PL companies provide much needed technical and personnel support to your logistics operations.

Free up Time and Resources

One of the key benefits of hiring a 3PL partner is that it can alleviate a lot of worry about details that aren’t your core competencies. If you’re primarily a manufacturer, or a seller, you’d rather focus on enhancing your products and selling more. And that’s exactly what partnering with a 3PL helps you do.

Third party logistics companies essentially take over your order fulfillment process and run the show on your behalf. As a result, by simply partnering with them, you gain access to a large pool of experienced and skilled resources that know everything about logistics. You don’t have to worry about training and housing these resources in your facility.

Additionally, 3PL companies have long standing partnerships with a whole range of companies that are instrumental in the logistics process. By partnering with them, you can leverage these relationships and can avail great pricing options that normally wouldn’t be available to you.

As per a study conducted by Cin7, businesses with 3PL partners were 25% more likely to have positive year on year growth, compared to businesses that choose to handle their logistics in house.


Gain Flexibility and Scalability

The primary goal of any business is to scale up over time. However, as you scale up your production and your sales, your logistics and order fulfillment operations also need to be expanded. This is easier said than done and could land you in a mess if you’re not careful.

Additionally, companies should be flexible enough to scale up and down, depending on market conditions. Flexibility or lack thereof, can make or break your business during turbulent times, as seen in the recent pandemic.

This is where a 3PL partner can save the day for you. By partnering with a third party logistics provider that is capable of handling large amounts of orders, you no longer have to worry about scaling your logistics.

Improve Customer Satisfaction

The end goal of any business is to create a customer experience that is both enriching and enjoyable. When you partner with a 3PL company, it helps put your product in the hands of the customer in a much more efficient manner. It also allows you to focus your energy towards building better products for your customers.

All of this translates to a premium user experience, something that can easily help you stand out among the competition. This is why companies around the world are increasingly warming up to partnering with 3PL companies.


How to Find the Right 3PL Partner

Check the 3PL’s Ability to Scale

While looking for a 3PL partner, it’s important not just to consider your present requirements but also your future needs. Your business ought to have well defined future plans. Check if the company is capable of handling the kind of rise in business that you see for yourself in the future.

This is crucial because changing 3PL partners frequently isn’t advisable. Therefore it’s for the best if the company you select is capable of growing along with your business.

Check Their Technological Capabilities

Technology is central to most decision-making today. Choosing the right 3PL partner should be no different. While comparing different 3PL companies, consider their technology.

Some of the places to look at would be to see if they use an efficient warehouse management system. A good WMS ensures that your products are handled with utmost care and little to no human interference.

A technologically advanced 3PL company will be able to track your products fast. They will also be able to provide timely and accurate reports and analysis. All of these factors help in determining whether or not the 3PL provider is a good fit for your company.

Domain-Specific Experience

When choosing a 3PL, it’s also important to check whether or not the company has any previous experience with your domain. This becomes even more important if your products require specific conditions while shipping them to your customers.

There are 3PL companies that specialize in handling high-end luxury products, while some are experts at handling pharmaceuticals. It’s important to seek these companies out and only partner with those that are able to fulfill your requirements.


The advantages of partnering with an expert 3PL company are numerous. They not only help you cut costs and effort, but also enrich your order fulfillment process and make it more efficient.

Businesses today want to leverage global supply chains and create products faster, cheaper and better. With the help of a 3PL partner, they’re able to put these products in the hands of their customers.

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