3PL (Third Party Logistics) Advantages and Disadvantages

22 Nov 3PL (Third Party Logistics) Advantages and Disadvantages

 3PL or Third Party Logistics is third party courier and logistics software companies involved in the work from shipping to order delivery to online ecommerce stores. Third-party logistics takes care of order procurement, storage, and warehousing, stock management, labelling, picking, packing and finally delivering the order to the end customer. Nowadays industrialists work closely with 3PL. Working with a 3PL helps a lot in the growth and profitability of online ecommerce businesses

Prompt delivery: Third party logistics have many warehouses spread across many places and countries.

Warehouse Management: For warehouse management, 3PL companies buy the entire stock of ecommerce companies and store it in their multiple warehouses.

Inventory management: Inventory management is very important in third party logistics. Inside it, the items are available in the warehouse or not to be seen, and its stock has to be maintained.

Real-Time Order Tracking: Good order tracking facility is very important for e-commerce companies to maintain transparency among their customers.

Disadvantage:

Difficulty in tracking multi-carrier orders: You have to deal with multiple courier partners all the time.

Separate allocation of orders: Another disadvantage of a 3PL is that once an order is placed, it does not seem like a huge task to allocate and assign a courier partner to fulfill that order.

Free Communication: In case of any problem with the order each carrier should be contacted separately.