It takes a lot of bandwidth to operate a retail business. Whether you are an online retailer or run a brick-and-mortar business, you depend on the efficient movement of freight to maintain your operations. Logistics is the main component of any retail operation, from receiving inventory to shipping orders directly to customers. The amount of resources a retailer spends on operating its supply chain is unknown to most casual shoppers. This is an area where working with an experienced 3PL can be incredibly beneficial for any retailer.
What’s the Role of a 3PL?
There are multiple roles that today’s third-party logistics providers take on for their clients. For retailers specifically, they are essentially outsourced agent that takes care of numerous supply chain functions. Partnering with a 3PL allows a retailer to focus on driving sales, improving customer service, and other daily operations that help them increase sales and, thus, make more profits. Specifically, a 3PL can handle several specific logistics functions, including:
Scalable Services
A 3PL allows you to analyze your labor, transportation, and spacing needs depending on your business parameters. Businesses that focus more heavily on seasonal sales can benefit from this practice. You can always ramp up deliveries, warehouse space, and any other logistics a 3PL can provide when consumer demand dictates.
Cost-efficiency
Many companies assume that outsourcing to a third party by default means spending more on service fees. However, all the efforts of a 3PL will eventually save you money. Ultimately, the overall cost will be less than an in-house supply chain management. A 3PL is a one-stop shop for most of your supply chain needs. You do not have to invest in warehousing, technology, or a logistics team.
Bulk Shipping Rates
Shipping rates, especially spot rates, can fluctuate weekly depending on several outside sources, even daily in some cases. As a result, retail companies need stability in the market to ship their products. Bulk shipping rates help that happen. This is where 3PLs can help, especially since many retail companies need the negotiating power of a 3PL.
Distribution Network
3PLs have contacts throughout the country. If your business grows, a 3PL can offer additional resources from those within its network to assist that growth. At Taylor, we have a carrier network of 60,000+. With a carrier size that large, we can find you lanes and capacity to move your freight.
