10 FAQ about 3PL Logistics

third party logistics

No matter whether you own a small retail store of huge industrial concern, you have to organize and maintain stable functioning of the supply chain. Logistics is a rather complicated process. It encompasses copious activities – from packing to door-to-door delivery. The owners not of all companies are able to have their own logistics units to coordinate shipments. Nowadays it’s more profitable and convenient to cooperate with 3 PL firms. If you still do not know what they do, the following information may be rather helpful for you.

The list of 10 frequently asked questions allows you to understand the main peculiarities of 3 PL brokerage and decide where it meets your needs or not.

1). What does 3 PL logistics mean?

Third-party logistics companies solve a wide range of problems when it comes to the outsourcing of logistics processes. The brokers are able to organize and control the whole shipping process – from packing to warehousing.  

2). What services does it offer?

The 3PL brokers offer a wide spectrum of options. The experts may pack, transport, store, and distribute your goods. In simple words, brokers are responsible for the whole shipping process. 

3). For what types of business can it be advantageous?

It’s a perfect solution for both small and large companies. It helps business owners to save time and develop their enterprises while freights are delivered by professionals. 

4). What kinds of products does it work?

These days there are so many freight forwarders that it’s not easy to find the best one. Many companies promise they handle all types of shipments. Yet, it’s not exactly true. It’s almost impossible to find a service that is equally good at handling heavy and bulky products as well as fragile items. It’s better to clarify whether the firm possesses the needed warehousing space and equipment to deal with your order;

5). Is the option of increased capacity available?

If your enterprise is about to grow, you need to know whether it’s possible to increase the capacity the brokers provide or not.  The first variant is more preferable.

6). Are the cargoes insured when handled by 3PL brokers?

Cargo insurance is a must if you want to feel safe. The matter is the 3PL is financially liable for losses or damages within a limited amount. 

7). How much does it cost?

The final price depends on several factors. They include the level of complexity of your order, the type of cargo, the distance, and the deadlines.

8). Is it possible to track the inventory?

The greater part of 3PL companies uses convenient online apps. They allow you to track your cargo via smartphone.

9). How long does it take to ship the freight?

It depends on distance. Yet, it’s still possible to get your order fulfilled as soon as possible. The minimal transit period is two days.  

10). What’s the shrinkage allowance?

The amount of goods you ship to a 3PL warehouse differs from the amount of goods delivered to the final destination. Some of the items of this difference may be lost or damaged. It’s better to pick up companies with lower shrinkage allowance. 

So, 3PL logistics is a rather cost-effective and convenient way to handle your parcels. Yet, you should be ready to spend some time searching for a reliable and competent broker. You have to keep in mind that it’s necessary to avoid damages and losses of items in order to run a successful business.