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When it comes to modern ecommerce, third-party logistics (3PLs)<\/a> have become essential for managing complex supply chains and order fulfillment around the globe. Industry sources report that 90% of Fortune 500 companies now turn to 3PL providers<\/a> for help carrying out their operations.<\/p>\n 3PLs provide make-or-break support for managing the logistics of high-volume order fulfillment\u2014and ecommerce brands are undoubtedly placing a lot of trust in 3PLs not to let their business fail! This blog covers the most common 3PL challenges, including fulfillment concerns\/fears that 3PL clients have, and how 3PLs can address them with smart warehousing technology.<\/p>\n <\/p>\n Contents<\/p>\n 3PLs can help your business in several ways, but the most noteworthy and popular reason most companies rely on 3PLs is the distinct\u2014and dynamic\u2014way they positively impact your numbers. We\u2019re talking about a better bottom line.<\/p>\n 3PLs are proven to significantly reduce overall operating costs and cut any unnecessary extra expenses, which equals higher profits. Period.<\/p>\n In fact, according to PLS stats for 2022, an impressive 75% of shippers claimed that they have seen a marked drop in overall costs after recruiting the aid of a 3PL in their operations. How do 3PLs work such magic?<\/a><\/p>\n What makes 3PLs so special is that their services are end-to-end, from storage to shipping. Optimizing end-to-end can result in a mountain of savings for businesses. Order fulfillment<\/a> in particular, can benefit from utilizing a 3PL<\/a>. Using a third party to avoid the overhead cost of running your own fulfillment team is an advantage many DTC businesses are looking for.<\/p>\n Speaking of order fulfillment, it\u2019s increasingly vital that companies can ensure packages are supplied in promised timeframes. The online shopping world is experiencing an explosion and consumers are expecting quick turnarounds. When those online orders come streaming in, businesses have to be ready and prepared to meet the demand at a moment\u2019s notice.<\/p>\n According to recently published survey stats<\/a>, almost one-third of global respondents (30%) report they shop online at least once weekly (many mentioned going even more); despite the pandemic stay-at-home orders having been lifted some time ago.<\/p>\n It makes sense that a visible uptick (some may call it a skyrocketing) of increased activity in online shopping trends began in 2020 due to the arrival of COVID restrictions and physical shopping being rendered impossible. However, this online shopping craze that was first attributed to pandemic-inspired shopping behaviors doesn’t appear to be going away anytime soon.<\/p>\n In fact, new data sheds interesting insight<\/a> on online shopping and ecommerce, with predictions for home shopping to continue gaining momentum as we head into the holidays and onward into 2023. Online sales are showing a clear upward trajectory, with a projected estimate of $5 trillion in sales topping out 2022. This uptick comes as no surprise in light of the increased popularity of mobile shopping and subscription-based services\u2014all of which make for a collective tech-centric runaway train that only appears to be picking up steam.<\/p>\n But that is just one of the examples to highlight in the arsenal of advantages 3PLs bring to the table. As well as handling and streamlining order fulfillment, 3PLs also can help with warehousing<\/a>, logistics (scheduling deliveries, etc.), and even with business expansion.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row disabled_on=”off|off|off” module_class=”center-vertically” _builder_version=”4.22.2″ _module_preset=”default” background_color=”#eef1f8″ background_enable_color=”off” use_background_color_gradient=”on” background_color_gradient_stops=”#6717cd 51%|#0b0b0b 100%” width=”100%” module_alignment=”center” custom_margin=”42px|auto|45px|auto|false|false” custom_padding=”30px|40px|30px|40px|false|false” border_radii=”on|12px|12px|12px|12px” box_shadow_style=”preset1″ box_shadow_vertical=”0px” box_shadow_blur=”10px” box_shadow_color=”rgba(74,75,109,0.09)” global_module=”3761″ locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.22.2″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.22.2″ _module_preset=”default” header_3_text_color=”#ffffff” header_3_font_size=”30px” header_3_font_size_tablet=”30px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n [\/et_pb_text][et_pb_code _builder_version=”4.22.2″ _module_preset=”default” text_orientation=”center” locked=”off” global_colors_info=”{}” theme_builder_area=”post_content”]\n
How Can 3PLs Help Your Business?<\/h2>\n
Request a free demo to learn more about Logiwa WMS.<\/h3>\n