Every business that desires to streamline the shipping and logistics process of its e-commerce brand looks for 3rd party shipping services. Continue reading to get informed about the pros and cons while you think of getting started with third-party shipping.
What is Third Party Shipping
3PL or third-party logistics is referred to as 3rd party shipping, which is an intelligent strategy of outsourcing the shipping and logistics duties of a business to external entities. To manage various aspects involved in the supply chain of a business, companies work with professional logistics experts rather than doing everything in-house.
Pros of 3rd-Party Shipping Companies
- Reasonable- Businesses can evade shipping independently and partner with 3PL to enjoy bulk shipping rates and opportunities for making savings.
- Efficiency and Expertise- To streamline the shipping process you can rely on 3PL providers because they’re knowledgeable and resource-filled.
- Scalability- The fluctuations in demand can be handled appropriately by the best 3rd party shipping. Thus, you as a business can meet the needs of your customers during peak seasons.
- Identify your Core Competencies- Businesses can concentrate on their core activities by outsourcing the duties of managing logistics.
- Involvement of Technology- Advanced logistics and inventory management software is leveraged by many 3PL providers. This software provides real-time data and analytics which allows businesses to make informed decisions.
- Reach Globally- Third-party logistics (3PL) firms offer extensive proficiency, associations, and awareness of cross-border logistics, covering the rules and customs of international shipping.
- Reduce Liability and Risk- Often some risks and liabilities of shipping are handled by 3PL providers which safeguards the businesses from enduring potential losses of damaged or lost goods.
- Improved Customer Experience- 3rd party shipping contributes to bringing a positive customer experience through efficient shipping, accurate tracking, and timely delivery.
- Time Savings- It is time-consuming to handle the shipping in-house. With a 3PL provider, businesses get ample time and resources to focus on other vital activities.
You have till now checked the advantages of third-party shipping, but it is essential to consider the drawbacks.
Cons of 3rd-Party Shipping Companies
- Reduced Control- With outsourcing shipping comes reduced control over the proceeding.
- Limited Customization- Standardized processes are not suitable for many businesses. It is because either their products are highly customized or satisfy unique shipping needs.
- Challenges of Communication- sometimes you as a business find it difficult to coordinate with 3rd party shipping services. It can be because of timezone, or language barrier.
- Dependency- You can develop increased dependency by relying on a third-party provider. The supply and business shipping chain can highly be impacted by any disruption in the operation of the provider.
After you evaluate the pros and cons, you will be able to get started with 3rd party shipping effectively.