Top Reasons to Use a 3PL Provider for Your Business
Top Reasons to Use a 3PL Provider for Your Business
The need for brick and mortar retailers to offer fast, local delivery is becoming increasingly critical as they compete with the convenience and speed of online e-commerce giants and their 2-day and same-day delivery options. But, the time and financial resources required to manage a delivery fleet can be draining, especially for small businesses with little start-up capital. While there are pros and cons to keeping operations internally, business owners should consider a simple yet effective supply chain solution to provide a fantastic customer experience: outsourced logistics.
Before we jump into why businesses should consider outsourcing their deliveries through an external delivery logistics platform, it’s important to first understand what 3PL means and how it works.
What is a 3PL?
Third-party logistics (3PL) refers to the outsourcing of logistics processes, including supply chain management, inventory management, and warehousing at a fulfillment center. Certain 3PL services make customers go through a pick-and-pack fulfillment process, which involves manual spreadsheet work to submit and track orders. Other logistics companies such as GoShare offer simple and efficient transportation services through management software that allows you to order, track, and pay for delivery on demand within an app. Regardless of the specific supply chain task you choose to outsource, working with a 3PL is designed to allow businesses to divert less time towards menial tasks and accomplish more through technology and automation.
It’s vital to choose a 3PL company that seamlessly integrates into your operations and meets your delivery demands with ease. Whether you seek an effective retail delivery or e-commerce delivery solution, 3PL can be extremely beneficial for your business.
Now, let’s take a deeper look at some of the main reasons why using a 3PL provider is an effective strategy for businesses.
The Benefits of Using a 3PL Provider
Low Startup Costs
Purchasing or renting a fleet of trucks and vans to support day-to-day deliveries is no small undertaking. In addition to the large amount of startup capital that’s required to hire qualified drivers and build a sizable fleet, you must also factor in the fuel and repair costs to maintain these vehicles.
Outsourcing delivery to a third party company requires virtually no upfront investment, which is especially helpful for small businesses that closely manage their budgets. A delivery service platform like GoShare helps you realize cost savings, offering a virtual fleet at affordable rates with no hidden fees or contracts.
The cost of adding delivery drivers may be more than some businesses can absorb, and could require resources be diverted from other areas – including hiring or investing in company improvements, such as software or store remodeling. Additionally, factors such as seasonality and marketing efforts often lead to volume swings of on-demand deliveries. A third or fourth-party logistics service allows you to quickly scale up or down with the demand. This eliminates the possibility of overstaffing an internal fleet during slow periods or understaffing and losing customers.
Using outsourced logistics allows you to refocus your resources where they are most needed. With the right affordable partner, you should be able to pass through shipping costs to customers. And, many 3PL companies absorb the cost of insurance and delivery damage claims, meaning you don’t need to add additional coverage to your policy.
The amount of time spent recruiting, training, and monitoring your delivery staff, as well as maintaining your fleet, drastically hurts day-to-day operations. When delivery volume gets hectic, the time investment of tracking and managing every order is cumbersome and largely inefficient.
Businesses that outsource delivery are able to successfully avoid menial tasks and free up time for increased productivity among other important activities. Letting a 3PL company handle the details of delivery allows businesses to focus on their core competencies, whether that’s maintaining a unique inventory selection or offering incredible customer experiences.
A Perfect 3PL Provider Solution for Delivery
GoShare is a straightforward solution for businesses that need a reliable 3rd party delivery service for outsourcing delivery. The GoShare app helps businesses with deliveries on demand, connecting them to a local network of drivers with a versatile array of vehicles. Smaller vehicles are available for small packages, while pickup trucks, cargo vans, and box trucks are available for large items. With GoShare’s virtual fleet, your business can avoid handling tedious logistics processes and instead achieve effective last-day delivery on demand for your customers.
GoShare’s local fleet means you can expect a driver ready at the pickup location in as little as half an hour. But, you always have the ability to schedule multiple orders in advance as well. Payment is handled online, and our automated tracking system and push notifications allow you to stay up-to-date on your delivery order at all times.
The growing consumer demands of convenience and speed is a challenge for businesses, but GoShare makes it simple and easy to meet those demands. By using a delivery service app like GoShare, businesses can effectively automate their logistics that are scaled and customized and offer same-day delivery on demand to satisfy their customers.
To learn more about how GoShare can help retail and e-commerce businesses with last mile delivery, visit GoShare.co/Business.
If you found this article helpful, check out these additional posts for more information about the logistics and last mile delivery industries.
- The Importance of Last Mile Delivery for E-Commerce
- Retail Delivery Best Practices
- Why Robotics Process Automation is Essential in Logistics
- Navigating Costs in the Trucking Industry
- Using On-Demand Transportation for the Construction Industry
- How a Virtual Fleet Can Leverage Businesses With LTL Freight
- How Technology is Driving Rising Customer Expectations