As we continue to recover from the economic disruption of 2020-21, companies across the nation are looking for ways to reduce their logistics and fulfillment costs. For many companies, this means hiring a 3PL warehouse management company. Dedicated service providers who specialize in logistics can often run warehouses, and shipping services in general, much more efficiently than a company can on its own.
Traditionally 3PLs, as well as 4PL logistics companies providing ‘high level’ services, have focused strictly on logistics. However, as competition in the field has become tighter, they’ve increasingly begun to offer a variety of value-added services. If you shop around, you can find a 3PL warehouse management service that goes above and beyond, offering even better cost savings overall.
How Value-Added Services Increase The Value Of 3PL/4PL Warehouse Management
There are numerous extra services a 3PL may be able to provide. Just as a few examples:
- Packaging: Logistics firms typically have close contacts at packaging companies and may be able to source packaging for lower costs.
- Assembly: Assembling components into a final product can be an expensive process. 3PLs are in a position to reduce this cost.
- Consolidation: 3PLs and 4PLs are increasingly embracing strategies such as pool distribution that effectively consolidate shipments, reduce costs as well as reduce the overall need for trucks.
- Inventory management: 3PLs and particularly 4PLs are offering increasingly robust options for tracking and managing inventory, simplifying your oversight.
- Reverse logistics: Manufacturing and shipping produces a lot of waste – but that waste can often be repurposed or used creatively. Reusing or reselling waste, and recapturing lost materials, can significantly improve efficiency and profits.
- Transloading: In some cases, moving shipments between different modes of transport – such as trucks, trains, and ships – can reduce costs or improve shipment speed. Good 3PLs can utilize multi-mode transloading to improve your operation.
- Sorting and Direct Store Delivery: Rather than simply delivering to a shipping hub, 3PLs, and 4PLs often now handle the last mile themselves or come up with innovative options for end recipients to pick up their deliveries at a hub.
Not all these options will be needed by all clients, of course. The biggest benefit of all is that 3PL warehouse management firms can customize their services and provide turnkey services that cover all of a client’s needs.
Contact us for 3PL Warehouse Management Services and more!