A 3rd party logistic company plays a critical role in the United Kingdom’s supply chain. These companies are commonly referred to as 3PL companies. They frequently manage the logistics operations and supply chain of third-party businesses.
By effectively outsourcing logistics and fulfilment operations, a business can save time, money, and resources by not having to handle it themselves. These companies can handle warehousing, transportation, logistics, and distribution more efficiently and effectively. If you’re interested to be a driver that will be needed by these companies, contact the LGV Training Company to get your LGV licence.
What Services Do These 3rd-Party Companies Offer?
When you partner with a 3PL company, the level of support ultimately comes down to what you need. However, some of the more popular services include:
These companies typically handle both the ordering and receiving of goods from different places in the supply chain.
These companies not only receive orders from customers, but they also pick and pack the orders and get them shipped out.
These companies provide temporary storage for goods in their warehouses which are typically scattered for better logistic efficiency.
The companies arrange for everything from the consolidation to the deconsolidation of goods. They also handle the management and transportation of the goods throughout the process.
By effectively outsourcing both logistics and supply chain operations, a company can better spend its time elsewhere in its business. This allows them to focus on result-producing activities within their business that drive revenue.
What Do 3PL Logistics Companies Require To Manage A Company’s Supply Chain?
3rd party logistics companies are effectively responsible for managing a lot of the operations of a business. Because of this, they need a lot of information from their client’s supply side.
The data sharing between the client side and 3rd party logistic companies is essential to ensure that there is a mitigated risk of errors. It’s also needed to maximise efficiency.
What Exactly Are The Benefits Of Using 3rd Party Logistics Companies?
One of the hardest parts of running a business is handling the supply side of things. The logistics involved with managing a business is one of the most resource-intensive aspects of running a business. Unfortunately, most businesses don’t have the time or resources to dedicate to it. Instead, they have to focus on running their business and growing their business. They can’t do this when they are more focused on the logistics aspect of their business. By partnering with a 3PL company, they can better focus their efforts on scaling their business without having to worry about hiring more employees, getting larger warehouses, and more.
Because the UK is a major exporter throughout the globe, 3PL companies play a critical role in the industry. With the support of a professional 3PL company, you get to expose your products to more customers throughout the globe. These are customers that you may not have had access to otherwise. You get to start selling your products globally without hiring more people or sending resources abroad. A third-party logistic company effectively manages travel, customs, shipping, and compliance. This ensures that these companies can get their products anywhere they need them.
How Has COVID-19 and The Pandemic Impacted 3PL Providers?
There was a released report that showed that e-commerce within the UK made up as much as 35% of the total retail revenue out there. Considering the very first lockdown wasn’t instituted until late March, that’s a large number. In addition, as many as 57% of consumers in the UK that were surveyed said they would continue to do the majority of their shopping on the internet even after the pandemic and the lockdowns were lifted.
The same report said that 15.6% of companies in the UK ended up closing their brick-and-mortar storefront. Of them, 8.8% launched a website and 30% of businesses noted they would be expanding on their internet side of the business.
The restrictions haven’t decreased demand from consumers. The strain on the supply side has only increased with the COVID-19 restrictions and ramifications. This has only made efficient 3rd party logistics companies that specialise in such things more important.
What Is 3PL Software?
A company that produces 3PL software offers an end-to-end and fully integrated logistic software solution that helps these companies operate. This software is pertinent to helping them provide the best possible service to their customers.
Partnering with an experienced and established 3PL company is one of the best ways to get your business to stand out in the marketplace and to give your company a competitive advantage.
You will effectively have the chance to leverage the value of your existing relationships and industry knowledge. You will also be able to maximise the efficiency of your entire operation without having to dedicate time, energy, or resources to it yourself. Knowing the benefits of enlisting the help of a 3PL company can help you improve your entire business operations.