What Business Owners Must Know About 3PL Services?

Delivering your products to your customers is vital as a business owner. 3PL services are logistic solutions that include receiving, storing, packing, and shipping your products. You can even opt for a company that offers inventory management, procurement, etc.

Why You Must Consider 3PL Services for Your Business?
Providers of 3PL services, like EGA Logistics, have been in the logistics industry for years or decades. They know how to make the process a lot quicker and more effective. This is the reason the market for these services has grown exponentially. But why should you consider them?

If you don’t want to manage your logistics in-house, then this type of service can be used to handle certain aspects, like transportation, material handling, warehousing, and customer service. These services can be beneficial to you as a business owner because they can help reduce costs and improve efficiency. They also let you access resources that would not otherwise be available.

What are the Types of 3PLs?
Not all 3PL companies offer the same services. But most of them focus on the following areas:

Transportation. It focuses on Transportation services that handle inventory shipments. This type of company includes freight forwarders that transport large shipments.
Warehouse. It’s the most common type of 3PL. It provides the most basic fulfillment services, like storage, pick and pack, shipping and returns. Most 3PLs handle the seller’s transportation and optimize the strategy on behalf of the seller.
Freight Forwarding. This is commonly used by larger e-commerce companies, like Amazon. It’s a type of service that optimizes the logistic network by offering various services, ranging from cost control to accounting.
Other providers offer truck and yard management services including spotting and shuttling services. Spotting services are essential to inventory optimization and warehouse efficiency. There are many moving parts in the average yard, as loads arrive, get unloaded, and trailers are parked for later use.

EGA Logistics includes spotting and shuttling services. Spotting services make warehousing more efficient. Shuttling services, on the other hand, will ensure that your goods will reach their final destination. EGA Logistics offers shuttle services that are customized to fit the needs of your business.

Is a 3PL Different from a 4PL?
If you follow a 3PL model, you maintain the logistics management oversight. However, you outsource the logistic operations to a provider. The provider will have total control over warehouse operations, inventory, and space. In a 4PL model, on the other hand, you outsource all your logistics operations. The 4PL is the point of contact between the seller and logistics providers.

Is It an Expensive Process?
You may think it’s strange to relinquish control of your fulfillment process to a provider. However, working with a provider frees your time so you can focus on other aspects of your supply chain. In that way, it’ll be easier for you to achieve your core business goals.

Additionally, 3PL services let businesses take advantage of the expertise, resources, and cost-saving opportunities of an experienced logistics provider. This can help businesses reduce their overall costs while improving the efficiency and reliability of their supply chain. Overall, 3PL services offer a great way for businesses to increase efficiency and free time and save money.

Choose the Right 3PL
The idea of outsourcing your logistics operations to a 3PL can seem daunting and expensive. But if you choose the right company, it can actually help your business grow effectively. This is especially true if you don’t have the right knowledge and experience on how to get your product from the manufacturer to the end consumer.

Talk to us about our 3PL services so you can determine whether or not these services are right for your business. Call us here: (888) 496-1102.

What Do Warehouse Management and Fulfillment Services Do?

Warehouse management and fulfillment services help businesses store and manage their inventory. Companies that offer these services also ship products for the customers of their clients. They provide businesses with a cost-effective and efficient way to store, manage and distribute their products. They also offer a range of services such as order processing, inventory tracking and management, and customer service support. By outsourcing these services, businesses can focus their resources on their core activities and ensure their customers receive their orders quickly and accurately.

What are the Benefits of Outsourcing or Using Warehouse Management Services?
Outsourcing your warehouse processes can be beneficial for many reasons. Here are some of them:

Reduce Costs
It can help reduce costs associated with staffing, training, and overhead expenses. When you outsource warehouse management, you’ll pay for the space you need and not the entire building. This is different when you run the entire warehouse yourself. Outsourcing this job is more practical. Furthermore, companies, like EGA Logistics, have access to facilities and materials that can help you save on other servicing costs. Plus, you won’t fork out employee salaries just to manage your warehouse.

Improve Efficiency
The outsourcing company is likely to have the necessary expertise and experience in handling warehouse processes. By boosting the efficiency of your entire operation, it can boost customer satisfaction, expansion, and revenue.

Reduce Risks of Errors
It can help to reduce the risks of errors and improve customer satisfaction. Warehouse processes can be time-consuming. They are also prone to errors if they are handled by inexperienced individuals. However, if you outsource them, you are handing them to the experts. Modern warehouses have advanced technology to automate operations and reduce errors. It can react swiftly to any change in the market. Because of how flexible it is, outsourcing warehouse operations can be the key to minimizing loss and disruption.

Free Up Time and Resources
Instead of hiring employees to handle the operation, you can free up your time so you can focus on other areas of your business. The flexibility it offers reduces labor costs. It also eliminates concerns about training your staff or managing employees during peak performance periods. By using an outsourcing warehouse, you can hone your budget and put your time into other vital areas of your business. Doing so will improve the quality of the services you are providing.

Maximize Productivity and Profitability
As mentioned, you won’t handle the warehouse processes. In that case, you can focus on what’s more important for your business. You can also maximize your profitability because you are putting your money into things that can definitely boost your sales and leads.

Increase Security
Warehouse companies prioritize security. However, it still depends on the company you hire for this purpose. Not all warehouse companies are created equal. Thus, it’s ideal that you choose a warehouse company that offers state-of-the-art security for its operation. Check out EGA Logistics to find out how its warehouse management service can assist your business in increasing flexibility, security, and profitability. Call here to inquire: (888) 496-1102.

How a Warehouse Provider Can Help an eCommerce Save Money?

A warehouse provider plays a vital role in helping eCommerce businesses boost their sales and earn the trust of their customers. This provider doesn’t just handle warehousing but it also handles fulfillment and distribution. But how can it help you save money?

Cost-Saving Benefits of a Warehouse Provider
Reduced Overhead Costs
This is one of the main benefits of using a warehouse. It eliminates the need to pay for warehouse rent, utilities, and equipment. Keep in mind that maintaining a warehouse facility has associated costs. The cost includes various aspects, including operational and overhead. Plus, there’s also the risk of spoilage, damage, or customer rejections.

Businesses that are outsourcing their warehouse needs have experienced a great reduction in their overhead costs. By contracting with a provider, like EGA Logistics, you can slim down facility expenses, like business rates and rent while still having the space for storage and inventory when needed. Most of all, you’ll spend less money on staffing as you don’t require multiple employees to manage your warehouse.

Reduced Labor Costs
Partnering with a 3PL can also lower overall labor costs as the provider will handle various warehouse tasks, such as storing, receiving, and shipping products. By not handling these things, you are saving the business money on labor costs. As you utilize its provider’s services, you’re only paying for the labor you need. The provider has the expertise and labor for product shipping and assembly management.

Improved Inventory Management
Furthermore, a provider utilizes technology and logistics expertise to optimize inventory management, which can help reduce the costs associated with overstocking or stockout. Storing and movement of stock can be time-consuming. It is also costly as it is linked to picking, packing, and dispatch. But when you outsource it to a provider, your stock inventory management will be more cost-effective. As you delegate the process to the provider, you can have more time to diversify and grow your business.

Reduced Risk
The use of a warehouse provider can lower the risk of inventory loss or damage. It also lowers the risk of having too much or too little inventory on hand, which can save the business money in the long run. In this modern business, you need the flexibility to adjust to the ever-changing market conditions in the supply chain. Storing your inventory at a warehouse lets you have on-hand inventory to avoid stockout. EGA Logistics has the necessary equipment and tools to ensure that your products reach their destination faster at a much lower cost.

Cost of Compliance
This is one of the hidden benefits of using a third-party warehouse. The provider can handle compliance with laws and regulations that apply to storage and shipping. This can save the business money on legal and compliance-related costs.

Flexible Warehouse Services
EGA Logistics is one of the leaders in warehousing. It can handle whatever size and type of your inventory. The company has a team of experts who design, implement and operate warehouses customized to your business requirements. Call our warehouse provider today for a consultation at (888) 496-1102.

Is the Use of a Third-Party Warehouse Space Scalable?

Scalability is just one of the advantages of using a warehouse space from a third-party provider. It can scale up or down to meet your business’s changing inventory needs.

Ways a Warehouse Space Can Be Scalable
For one, it has a flexible space. It can easily reconfigure to accommodate changes in your business’ inventory needs. Then, it uses adaptable technology that can be adapted to handle changes in product size, weight, and volume. It can also handle inventory storage and shipping for multiple businesses, which allows it to scale up or down to satisfy the needs of your business.

On-Demand Services
Another reason more and more businesses are using a third-party warehouse provider is that they can use on-demand services. These would include pick-and-pack, repacking, and others that can also be scaled up or down. Furthermore, a 3PL warehouse can handle seasonal peaks and unexpected demand for storage and shipping which can help to scale the business operations.

Flexible Labor
A third-party warehouse also has a flexible labor force that can be adjusted to meet changes in demand. It allows the warehouse to handle increases or decreases in inventory. Depending on the provider, a third-party warehouse is equipped with automation and robotics, which can help to boost the warehouse’s capacity to handle more inventory and speed up operations, making it more scalable.

How to Pick the Right Provider?
There are several factors to consider if you have decided to use a warehouse space from a third party.

Fulfillment services: Look for a warehouse that offers these services. EGA Logistics, for instance, offers raw components management, kitting, finished goods management, and inventory management, among others.

Security: The safety of your inventory must be your topmost priority. If you manage your own warehouse, you need to invest thousands to millions of dollars just to ensure the safety of your inventory. But you can rest easy knowing that your inventory is safe in the hands of a warehouse space provider. The warehouse is equipped with surveillance cameras, alarms, and fire suppression systems.

Compliance: Before you partner with a provider, you need to investigate whether or not it is compliant with local laws and regulations. The provider must also meet the requirements of your business.
Reputation: Read online reviews to know more about the company’s reputation. Don’t settle with the information that the company provides on its website. Instead, go to Google or Yelp to read online comments from the company’s actual clients.
Technology: You should also check the provider’s technology. Does it use automation to increase the efficiency and scalability of your inventory management and shipping?

Who to Hire?

When it comes to warehousing, it’s important to partner with a warehouse provider that can navigate the changing warehousing and logistics industry. The warehousing solutions must be tailored to your business requirements. If you have further questions about how can a warehouse space provider help your business improve efficiency, reduce cost, and enhance service, please call us here: (888) 496-1102.