What is a 3PL Inventory System

Third-Party Logistics (3PL) companies collaborate with eCommerce businesses of all sizes, managing warehousing and inventory and ensuring swift and precise order fulfillment.

But why would an eCommerce business give up some of its revenue to an outside party like a 3PL firm? Well, it turns out logistics isn’t exactly easy.

3PL companies can handle most supply chain functions far more efficiently and with less expense than most businesses can manage in-house.

With the rise of eCommerce and omnichannel order fulfillment, outsourcing logistics management to 3PLs keeps small and mid-sized businesses competitive with the same customer service and shipping options offered by their biggest rivals – often for a lower cost than keeping the same operations in-house.

Additionally, working with a 3PL can save eCommerce businesses time and money while allowing them to free up resources to focus on more growth-oriented tasks, including product development and marketing.

But what exactly is a 3PL inventory system? And how does a 3PL help eCommerce businesses thrive?

Let’s explore.

What is a 3PL?

A 3PL, or third-party logistics provider, is a firm that offers outsourced logistics services to businesses.

These comprehensive services often extend beyond logistics to cover all aspects of supply chain management.

This can include transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding.

The principal advantage of partnering with third-party logistics providers is the ability to scale space, labor, and transportation according to your company’s needs.

Whether you’re experiencing high seasonal demand or expanding your business, a 3PL can adapt to your circumstances, providing resources and flexibility when required.

They can also offer valuable expertise and access to global networks, aiding businesses looking to grow or break into new markets.

Working with a 3PL allows businesses to focus on…

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