What is 3PL (Third Party Logistics) | OPLOG
One of the easiest ways to concentrate your sales in the rapidly changing e-commerce ecosystem; is possible by managing and controlling your after-sales operations within your e-commerce business by Third Party Logistics (3PL). In short, this situation is called outsourcing.
What is outsourcing?
One of the easiest ways for businesses to concentrate on their core business in a rapidly changing economic environment; is the management and control of certain activities carried out within the organization by an external expert. A strategic relationship between the company that purchases the function or service and the supplier is described as a "partnership." In this relationship, two independent firms can strive for higher performance and lower costs. The risk is shared in the traditional customer-supplier relationship. Today, many companies prefer to have the work outside of their primary activities done by companies that are experts in these subjects. Thus, companies have the opportunity to devote the time, energy, and money they will spend on these services and works to their primary fields of activity.
What is 3PL?
It is the service of effective and efficient planning, implementation, transportation, storage, and control of products, services, and information flows in the supply chain from the starting point to the last consumption issue to meet the customers' needs.
The fact that companies exist in competitive environments also increases the importance of logistics services. When companies want to focus more comfortably on the essential service areas, they have to act in cooperation with the companies that will offer them 3 PL services. It is seen that such studies provide various advantages in terms of business. It is seen that warehousing and logistics activities are the basis of this activity. When companies do their logistics work more quickly and systematically during product sales, it is seen that customer satisfaction increases. As a practical application, this service is among the works requested by the vendor companies.
However, only expenses should not play a primary role in obtaining these services because the realization and management of some logistics services within the company can be so efficient that another company cannot provide them at a lower cost. Logistics services that satisfy the customer and offer a competitive advantage must be realized, directed, and developed. Companies that will receive logistics services from outside should first analyze their structures very well, make a situation plan, determine their targets, and determine how much they can do and what will be demanded from outside.
Advantages of 3PL
📦It reduces the stocking cost of companies with its warehousing services.
📦It enables companies to turn to their fields of activity by saving on costly investments such as transportation and storage.
📦Transportation costs are reduced with the logistics service provider's high carrying capacity and forwarding ability.
📦Stock levels can be minimized since it is clear what quantity of the needed products will be kept. There are no situations such as owning unnecessary stocks and occupying space.
📦The labor force is saved because a single center manages it without a workforce at many points, such as packaging, product shipping, and returns, which reduces the professional crew that may be needed at these points.
📦Risks such as loss, accident, and theft are transferred to the logistics company.
📦World-class talent and new technology are available.
Stages of 3PL service
To ensure accuracy in fulfilling orders, companies working as a 3PL agent follow a series of operational stages, from taking an online order to delivering it to the customer's doorstep and, in some cases, even managing returns. These stages are as follows;
1)Warehouse Management
Warehouse management means that products are stored in a specific location while in the sales process until they are ordered. This phase also includes space, stock availability, transportation equipment, and the most efficient use of labor. In this process, all warehouse management transactions are met by fulfillment (e-commerce order fulfillment service). Thus, your products reach your customers in the fastest way, which gives your company feedback on customer satisfaction.
2)Order
The order management phase includes all processes such as receiving requests and orders, pricing factors, keeping records, controlling stocks, making stock allocations, conveying production or purchasing needs to the necessary places, tracking orders, and supporting delivery and collection under control.
3)Packing and Shipping of the Product
When the products are received from the warehouse, they are arranged according to a specific packaging system and sent to the customers by 3PL. In this way, e-commerce companies do not deal with extra costs such as packaging and shipping, and there is no time problem related to these issues.
4)Returns
Return processes can cause significant problems for many e-commerce companies. The important thing is to manage this process strategically because e-commerce logistics service takes over your return management processes. Returns management covers the control of possible returns, sorting of resalable products, and stock updates. 3PL intermediary companies, which solve incoming returns with their operations without forwarding them to the brand as an intermediary, manage transactions such as accepting the return, processing the process and re-entering the stock.
5)Customer Contact Support
It is a very advantageous service model that covers all communication supports and contacts such as mail, message, or call centers with the customer in case of possible returns or exchanges, answering the questions asked by the customers, informing the stage of the product reaching the customer. In customer services, it is ensured that people who have a good command of the brand give the necessary information to those who want to get information about this brand. The brand itself does not deal with the customer at this stage. The intermediary person manages all the necessary processes for the brand.
Partnering with OPLOG, you can take care of all your sales channels quickly with one logistics partner, one inventory, and one e-logistics system. So, boost your sales and maximize product distribution by consulting an OPLOG fulfillment expert.
Discover how our customer Woohoobox increased their sales and grew with OPLOG.
