Third Party Logistics – Tips on Improving Efficiency Business

It doesn’t matter what size your operation is, if you are a wholesaler or retailer that sells products, you must implement a process of picking, packing and dispatching, which we can label logistics. Rather than dealing with this yourself, the most cost effective way to ensure that all orders are promptly dispatched is to outsource to a third party provider. This type of company is geared up for fulfilling orders and such is their set up, they can tailor their services to suit you.

Leave it to the Experts – Let’s face it, processing multiple orders of high volume is an art, and all you really need to do is tell the 3PL provider what you need and they will provide what is necessary. You might already have a good packing and dispatching system, yet during peak times like Christmas, your system is overloaded and that’s when mistakes are made. You can ask the third party logistics company to assist you at certain times and with no lengthy and restrictive contract, you can use their services at will.

Analyse your Processes – It is only by analysing the process of picking, packing and dispatching that you can measure the efficiency of your current logistics and this is something a third party logistics provider can do. Outsourcing everything to such a company has many benefits, and whether your customers are global or local, they would have the resources to deliver to any location. The 3PL company would be very experienced and they would soon see where you really could improve things, making your business more efficient.

Make Good Use of Technology – Using the latest technology, it is possible to track every single order and therefore, know of the location of any item at any given time. This is invaluable when a customer wants to know when delivery will be made, as you are able to give them a delivery date with confidence. If, for example, your inventory database is online, then any authorised person can access the system and make real time changes. This is ideal if you have several distribution warehouses and this will ensure that your third party logistics partner will never run short on products. Keeping them stocked with products and packaging ensures an efficient fulfilment and you will automatically be alerted when any product range is running low.

Make Appropriate Changes – When first talking to a 3PL provider, once they are aware of your order fulfilling process, they might suggest making some changes that will make the system more efficient. At the end of the day, it is all about cost, and there is always room for improvement. Outsourcing the entire process of picking, packing and shipping will surely result in less of an outlay, plus you can use your resources for other aspects of the business.

There’s little doubt that outsourcing your picking, packing and dispatching is a wise move, and by talking to an established 3PL provider, your logistics problems will be no more

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