Third-Party Logistics – An Industry with a Future

Known simply as 3PL, this is the fastest-growing sector in Australia, as online shopping takes over from traditional retail outlets, which are struggling to compete with the low prices online suppliers are offering. The pandemic …

Known simply as 3PL, this is the fastest-growing sector in Australia, as online shopping takes over from traditional retail outlets, which are struggling to compete with the low prices online suppliers are offering. The pandemic saw many consumers move to online shopping and once you realise the many benefits, you are reluctant to switch back to visiting stores.

Picking, packing & delivery

Order fulfilment is an integral aspect of e-commerce and most business owners outsource the picking, packing and delivery to a local warehouse. They use industrial order picking carts and most processes are automated, which really speeds up the order fulfilment operation. Once you reach an agreement with the 3PL provider, have your products, labels and packaging delivered to their warehouse, then it is simply a question of forwarding orders via email.

Parcel tracking

This has revolutionised the industry; customers can paste their package ID into a search window and find out the precise location of their goods. This takes the pressure away from the business owner and same-day delivery should be available for domestic deliveries. The top-rated 3PL companies have the necessary infrastructure to provide a rapid service and you only pay for the services you use. There are no long-term contracts to sign, the company are happy to work month by month.

International logistics networks

Large 3PL companies are part of global networks and that means super-fast international deliveries, which is essential for e-commerce businesses. Without these state-of-the-art warehouses, the e-commerce sector would struggle with order fulfilment and as the industry grows, so will the 3PL operations.

Automated warehousing solutions

If you took a tour of a state-of-the-art logistics warehouse, you would no doubt be impressed, as the latest scanning tech and robots eliminate the human from the work loop. Logistics companies invest heavily in the latest tech to boost productivity and reduce running costs, which benefits online retailers immensely.

Flexible and reliable

If your e-store only gets busy during Xmas and New Year, you can turn on the service with a single phone call and put a hold in the same way. You could, for example, set an order value and when that is reached, the 3PL service automatically kicks in. So, you can use your 3PL partner as a backup while you are not busy and if you don’t use the service, there’s nothing to pay.

Highly competitive

The 3PL sector is extremely competitive and that is good news for e-commerce entrepreneurs, as many large players keep their costs to a minimum to stay relevant. If you are looking to connect with a top-rated 3PL company, talk to numerous providers to get a balanced outlook. The most expensive isn’t always the best, equally, the cheapest isn’t always the worst, so weigh up each provider and make an informed decision.

If you are a small player and would rather handle your own picking, packing and delivery, search online for Australia’s leading warehouse equipment specialist and order online.

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