A Basic Guidance About 3rd Party Logistics- For

3rd party logistics in Calgary

According to research, third party logistic market has grown up to 976.2 billion in 2021 globally. Working with 3rd party logistics in Calgary to help businesses of any size to pay attention to growth, marketing and customer satisfaction. Recent studies show that logistic companies are more in demand in e-commerce because many consumer products companies follow a business model to handle many operations, but that does not always stay productive.

Hiring a 3rd party logistics may save both your money and time. Before starting work with a logistics company in Calgary, it’s essential to clearly understand a 3PL, how the experts work, their responsibilities and advantages.

What is a 3rd Party Logistics?

Third-party logistics companies provide various services to e-commerce companies, including receiving shipping stocks, storing and tracking the warehouse inventory, and packing orders to ship them to customers. Also known as a fulfillment company or fulfillment centre offer additional services such as,

  • Freight forwarding
  • FTL and LTL freight shipping
  • Reverse logistics
  • Kitting
  • Customer support

What Does Third-Party Logistics Do?

Undoubtedly, the 3PL business model is one of the most popular outsourced logistic companies. Usually, the professionals handle both inbound and outbound transportation and warehousing for their clients.

As an e-commerce business company in Calgary, you don’t need to own a warehouse or manage the operations. Instead, rent a sufficient storage space for your products, and the 3rd party logistics experts store and place them into inventory.

Afterwards, the professionals pick the necessary items from the storage and ship them for delivery. The 3PLs work with multiple carriers to deliver orders to clients on time. Since the 3PL are designed to offer top-notch efficiency and maximize speed, they can handle if the e-commerce company experience any fluctuations in storage and shipping needs.

Having 3rd party logistics by your side ensures that you don’t need to hire any additional staff to fulfill the sudden expansion or requirements. One of the most significant advantages of hiring them is the professionals offer a speedy delivery experience to their customers at a reasonable price to other companies.

What are the Core Responsibilities of a 3PL?

Without a doubt, 3rd party logistics act as an essential supply chain so the client companies can focus on their business growth. The professionals do the following work, including,

  • Schedule and execute the receiving of inventory.
  • Sort and manage all the items in the inventory.
  • Manage recurring subscription boxes.
  • Maintain the inventory without making any compromises on the service quality.
  • Negotiate discounted shipping rates.
  • Pack and ship products and also assemble them if required.

The Advantages of Hiring a 3rd Party Logistics

There are several advantages to hiring a third-party logistics company. The following are,

Cost Savings

3PLs have the expertise and resources to streamline your logistics operations, lead to significant cost savings. For example, the experts can negotiate better with carriers, optimize inventory levels, and reduce the need for in-house staff.

Improve Efficiency

The professionals can improve your logistics operations’ efficiency by providing access to their up-to-date technology and systems. They can also implement best practices and processes, leading to quick order processing, improved delivery times, and reduced errors.

Increase Flexibility

3rd party logistics can improve the flexibility of the logistics operations and to do that, they

allow you to scale up or down your capacity as per needed. This is especially true for businesses that experience seasonal fluctuations in demand.

Get in Touch with Us!

Apart from improved customer service, there are other benefits of hiring a 3PL: access expertise and experience, focus on your core competencies, and get peace of mind.

If you are considering hiring a 3PL, be sure to research and choose a provider that fits your specific needs well.

Many different 3PL providers are available, so you must compare their services and rates before deciding. If you want to collaborate with any professional 3rd party logistics, contact us at Tenaxx Logistics Ltd in Calgary.