Third-party logistics companies have become increasingly important to the UK’s supply chain scene in recent years. Dubbed 3PL or fulfilment providers, these companies are tasked with managing and streamlining the supply chain operations of external businesses.
By opting for such services, clients can significantly reduce the amount of money needed to be spent on acquiring items like warehouse space, truck fleets, and retail outlets – allowing them to focus their resources on other key areas for further growth. Not only is this beneficial to their financials – but it also allows these business owners to place their trust in a provider who is proficient in handling all related logistic tasks for them. If you have an HGV C1 licence, you can find a job and start a career as an HGV driver with these companies.
In short, third-party logistics has revolutionised modern-day supply chains by providing an efficient and cost-effective solution for many businesses.
Services provided by third-party logistics companies
Most customers come to 3PL to avail of the support these companies provide in terms of procuring, fulfilling orders, storing, and transporting goods from other parts of their supply chain.
- Procurement: This involves acquiring goods from the supplier and ensuring that they are of the best quality before being delivered to the customer.
- Fulfilment: This involves receiving orders, packing, and shipping them out quickly to the customer.
- Storage: This involves finding suitable locations to store goods and managing inventory levels in order to meet customer demand.
- Transportation: This involves finding reliable ways to transport goods from one place to the other, using methods such as road, rail, air, and sea freight.
It’s clear to see why third-party logistics is an attractive option for many businesses – the services provided allow them to outsource the time-consuming and often costly activities related to supply chain management.
How do third-party logistics companies manage a supply chain
Third-party logistics companies rely on reliable access to data from their customers in order to effectively manage supply chain operations. Without optimal visibility, errors become more likely and the overall efficiency of operations suffers.
Data sharing is an effective way to help these companies minimise risk and work more efficiently. It provides valuable real-time updates and details regarding shipments, which allows for greater control over supply chain management decisions. Ultimately, it helps empower third-party logistics companies to better deliver results for their customers and meet expectations in a highly competitive industry.
Benefits of using third-party logistics companies in the UK
With the UK being a major exporter in the global market, businesses of all types need to know how to navigate supply chains across different continents. That’s where third-party logistics companies come into play. Not only do these companies provide comprehensive expertise for transferring goods through international supply chains, but also allow businesses to enjoy profitable growth and reach new customer bases without physically growing or relocating.
Many third-party logistics companies stay ahead of industry developments and changes in best practices, leveraging their experience with businesses across multiple industries and allowing them to expand their range of customers. In this way, businesses may retain their specialised knowledge while also taking advantage of outside experiences in order to break out even further into the global marketplace.
The impact of COVID-19 on 3PL providers
The recent report on eCommerce in the UK has highlighted the significant growth and potential of this retail space amidst the pandemic. With nearly 35% of total retail revenue being attributed to it, along with 57% of surveyed consumers wishing to shop online even post-pandemic, eCommerce is certainly an area that many businesses are now turning to.
Despite the closures of physical stores by 15.6% and many expanding their existing services or starting new ones altogether, the strain on logistics operations has never been greater due to its accuracy and efficiency demands in a time of increased volatility. It’s clear that eCommerce plays an important role during these times, yet careful planning must be taken which takes into account legislative changes to ensure its ongoing success.
What is 3PL software?
Companies are now offering integrated software tailored specifically to third-party logistic companies which enhances their operations in areas such as warehousing, packaging, and distribution. This end-to-end solution allows businesses to streamline and manage processes more efficiently and cost-effectively, ultimately resulting in improved customer satisfaction.
Final thoughts
Working with an experienced logistics service takes your business to the next level – setting you apart from competitors and giving you an advantage when it comes to getting goods or services safely shipped. The relationships and industry knowledge they can provide give you a significant boost, above other companies without access to this valuable service.