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What is Third Party Logistics and Why You Need this Service

Over the years, more online and offline businesses have become more empowered thanks to the internet. This has led to the increase in demand for services from Sydney third party logistics companies. According to Shopify, about 96% of Fortune 100 companies and 86% of Fortune 500 companies use these services.

Sydney Third Party Logistics

Also known as 3PLs, these providers help businesses to get their products from Point A to B as efficiently and seamlessly as possible. But they do more than that. They provide varying business services and some even specialise in certain ones.

Despite being a growing industry, some business owners may still be a bit confused about the role of Sydney third party logisticsservices and the scope of what they offer.

Here is a general picture of what third party logistics is all about.

What do 3PLs do?

Third party logistics Sydneyservice providers handle the procurement, distribution, storage, returns, monitoring—basically everything related to the fulfillment, shipping, and logistics of commerce. Each company may specialise in one or several of these.

  • Transportation – handling the actual transport of your product from your factory or warehouse to your customer.
  • Warehouse and Distribution – providing storage, packing, shipment, and returns services.
  • Financial and Information – assisting growing businesses in optimising their whole logistics systems and network. This can include installing software for managing orders and inventory, freight auditing, and cost accounting and control.

Who needs 3PLs?

Any business that has fulfillment needs can work with Sydney third party logistics service providers. Most of the time, you will consider such services when: Click here Plan A Logistics for more details.

  • You need to fulfill more orders than you can realistically handle.
  • You are running out of storage.
  • Your storage fees are becoming too expensive.
  • You are expecting a spike in sales (such as seasonal buying, running a marketing promotion, launching a flash sale, and so on).
  • Your business is growing.

How to choose a 3PL provider?

There are several companies that specialise in third party logistics in Sydney, so how do you pick one to work with? The first step is to determine what you need.

Are you looking for someone to help you import or export goods and handle all the paperwork involved? Do you need transportation services to distribute your products locally? Is packing or kitting something you require?

Are you just looking for a state-of-the-art warehouse management system and storage options for your growing inventory? Then get in touch with Plan A Logistics who are experts in these areas.

Remember that 3PLs specialise in different services, so once you know what you need, you should then find a company that can meet those needs.

Of course, make sure they are able to handle the number of orders you normally handle. And most importantly, find a partner you can trust. Don’t forget that they will be handling your inventory.

Aside from that, they are responsible for ensuring your products get to your customers on time and in prime condition. If there are late deliveries or damaged goods, it will be your reputation that is tarnished. Thus, it’s imperative you find third party logistics in Sydney who are known for high-quality service and reliability.