Tag: third party logistics

Tenaxx Logistics Makes Third-Party Logistics Easy

Third-Party Logistics

A 3PL or Third-Party Logistics is outsourcing all or much of a company’s logistics operations to a specialized company. The term 3PL was first introduced in the early 1970s to identify intermodal marketing companies or IMC’s in transportation contracts. A 3PL allows you to focus on other parts of your business as it allows you to outsource operational logistics from warehousing. This includes transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding.

Why Choose 3PL?

When the company grows, the need for warehouse space increases beyond that business’s ability to manage it. 3PL warehousing is always a good option for companies facing storage capacity issues. 3PL also provides more value including challenges with customer service, order fulfillment, returns, order tracking, technical services, inventory management and much more.

Types of 3PL

Depending on the services required there are particularly three types of 3PLs:

Warehousing:

This type of 3PL store, ship and handle returns.

Transportation:

This type of 3PL are specialized in the transportation between locations, transportation 3PLs include DHL, FedEx, UPS including the USPS.

Distribution:

This type of 3PL includes shipping and receiving the goods from one point to another.

Benefits of 3PL

3PL provides a great deal of value to the companies dealing with challenges such as rapid growth and changing market conditions. 3PL has several benefits:

1. 3PLs providers have a vast network of resources across countries, which includes warehousing space, trucking, and transportation fleets. This provides cost-saving options, as the company themselves will have to give in extra effort and double or triple the money.

2. As the 3PLs have a vast network across countries, the company can also expand its market outside its country and manage internationalization.

3. Leasing warehouse space and hiring a team of workers increases the overhead, instead of working with a 3PL can minimize the costs so capital can be directed toward return generating endeavors.

4. Customers can expect to achieve faster and more reliable delivery times, tracking systems have improved and customers can thus have order status, there are reduced chances of damage or incorrect product delivery. 3PL got it covered for you, all you have to do is select one Third-party logistics for your company and they will take care of the rest.

How to choose your 3PL provider?

The right 3PL provider can make or break your company’s logistics, customer service, company’s reputation and repeat purchase rate. If you are about to select a 3PL provider for your company trust someone with sales, inventory and other information at significant risk. Choosing the right provider is a balance between quantitative and relationship building.

1. Make sure that the 3PL can handle your current volume but also the forecast stock of volume, you want to choose a 3PL that can handle your business now and when you are at your full speed.

2. Check the provider’s terms and conditions and get a report on the company’s performance over the last few years. Seek references and information about on-time deliveries and delays. Your main focus should be on how the provider deals when there are problems.

3. Make sure your 3PL provider is using the latest technology.

Tenaxx Logistics is top Logistics Company in Cambridge, Ontario

We offer full-service 3PL – we’ll manage everything so you can focus on growing your business. Find out why so many people trust us with their third party logistics needs. Call our Tenaxx Logistics expert team today on +1(437)2200463 to know more about our services.

Prepare your Supply Chain for Peak Holiday Season

Experts say that most companies make more than 20 percent of their annual revenue during the peak holiday season- but when service failures occur during peak season, it can cost you a great amount in terms of delayed in customer shipments as well as stock-outs due to poor inventory management.

How retailers can address supply chain challenges?

Stock-outs put a great impact on your brand reputation and future business activities. Forcing your customers to buy a product – which is out of stock in your warehouse – from a competitor diminishes their faithfulness. The other challenge comes up when consumers who buy online and return the item in-store, called Omni-Channel consumers, put the pressure on retailers to have products both at the store and in the warehouse, in the right quantity and at the right time.
To address these challenges, retailers are trying modern distribution strategies that not only improve forecasts but also facilitate inventory movement across multiple shopping channels. Retailers may need the services of a third-party logistics provider on the basis of the distance between your store and the warehouse. Here are some tips that will help ensure good relations with your suppliers, 3PL provider, and customers:

1. Inform your 3PL vendor about new changes and purchase orders

As a retailer, you should keep constant communication with your third party logistics vendors and suppliers and inform them of any changes in purchase orders and keep them updated. For instance, informing them of advance shipping notices, or any other changes regarding receipt items, quantities, or dates on purchase orders, will give the 3PL provider enough time to prepare and deliver the item as per your needs.

2. Make room for flexibility with your carrier

You cannot always plan your project sales accurately using data from previous years. Make sure your 3PL provider takes the responsibility for last-minute, just-in-time deliveries to your store to avoid any stock-outs of certain items. To face such unforeseen incidents, you should develop a relationship with your 3PL vendor that allows for flexibility and can adequately handle last-minute changes.

3. Accurate Forecasting

Make realistic projections for order volumes and calls by hour, day, week or month in advance to ensure your orders are always available in the right quantities and at the right time and to give your 3PL provider enough time to prepare for it.

Final Thoughts

With these wonderful tips, you can get prepare for the peak holiday season and manage your inventory more efficiently. If you’re looking for 3PL warehousing services, look no further than Tenaxx Logistics. We have the space, services, modern equipment, and commitment to customer satisfaction needed to make your transition to the world of warehousing a smooth one. To know more about our warehousing services, contact us today.