Dec 21 2017

How a 3PL Can Save on Logistics Costs

3PLs can help e-commerce companies save money
E-commerce fulfillment

With a wave of retail bankruptcies and a massive drop in venture capital funding, e-commerce companies are scrambling to find new ways to cut down on costs. Thankfully, there is an area that can always be improved upon — logistics. Many sellers are finding that using a third party logistics provider (3PL) can save significant time and resources in a number of ways, including:

Warehousing

Because 3PLs use shared-space facilities, they’re able to balance the needs of multiple customers and consistently meet peak requirements. Without having to invest in permanent space and equipment, they can offer unparalleled scalability for customized warehousing solutions that can grow with your business.

Shipping

3PLs are now able to ship to 98 percent of the U.S. within two business days, giving e-commerce companies who use them a competitive edge in fast, reliable shipping. 3PLs are also able to pool orders together to maximize every trip they make. Their job is to get consumers their orders as cheaply as possible, as soon as possible,with no wasted motion.

3 PL Labor

Staffing multiple shipping facilities with qualified personnel and training them is expensive and time consuming. A proven 3PL like Seldat will have a great staff that’s always ready to handle what comes their way.By not having to hire temporary employees who may or may not work out with your company, you can ensure more consistency and continuity in your fulfillment.

Inventory

Optimizing your inventory systems with a 3PL is another great way to save on costs. A postponement strategy, for example, will allow you to move what you already have at the time when you want it to go out. Product customization and building to order can also shorten the cash-to-cash cycle.

3PL Technology

There are three main systems that 3PLs use to increase efficiency: order management systems (OMS), warehouse management systems (WMS), and transportation management systems (TMS). Location-based technology is especially effective in the 3PL world, and OMS allow retailers to allocate their total inventory in multiple areas. By being able to track down an item quickly and deploy it from the best location, you are able to further reduce costs.

Looking for more ways to save on logistics and shipping? Contact Seldat today and one of our supply chain experts will be happy to offer their recommendations.

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