3PL, also known as third party logistics is a company’s use of an external business to outsource some or all of the company’s fulfilment and logistics services.
Order fulfillment companies like Warehouse One are third-party vendors that fulfill orders for a range of other companies ranging from ecommerce stores through to brick-and-mortar brands that do not have their own warehousing and distribution facilities. This means a 3PL business can often find themselves working with companies who sell anything from fast fashion products to building supplies.
At Warehouse One we have been successfully fulfilling orders for a wide range of retail and wholesale businesses since 2007. We often find that new clients seek us out as a result of our extensive experience across industries, and easily scalable services that they simply couldn’t achieve themselves.
Another reason for the use of 3pl is that whilst many start-ups and smaller businesses often find it ok to fulfill orders from their own premises at first, those who achieve regular growth often find they simply cannot keep up with demand, and therefore need external support.
For more established businesses, it can often be much more cost effective to move their logistics to a warehousing and distribution business such as Warehouse One that is already setup to provide all of the necessary services. Implementing new stock management systems and live order tracking for example can be incredibly costly, and therefore it makes sense to use an external supplier who has already invested in these tools.
Ultimately, the decision is down to the individual business, but we find our clients cannot believe they didn’t make use of a 3PL sooner as not only does it prove more cost-effective, but it also allows them to focus on the other parts of their business.