Mythbusting: Common Misconceptions About 3PL Services
Rick Ackerman
***Oregon 3PL OmniChannel Fulfillment warehousing/Inventory Expert, Entrepreneur, Coach, Continual Learner***
Third-party logistics services have become the new norm for modern supply chain management, but many people still have the wrong notion about what a 3PL service can do and its value. This is what keeps business from being fully exploited by using 3PL services. That is, it is designed to make things more efficient, scalable, and customer-centric. Let's break some common myths about 3PL services and see what they can really do.
Myth 1: 3PLs Are for Large Companies
Reality: Many people believe that 3PL providers only cater to the enormous supply chains of big companies. In reality, 3PL services can be scaled up or down to suit small and medium-sized enterprises. Be it simple warehousing and fulfillment or sophisticated e-commerce integration, 3PLs offer flexible solutions that scale with your business.
Example: A small online retailer may outsource its order fulfillment to a 3PL and save resources to invest in marketing and customer experience while benefiting from professional support in logistics.
Myth 2: Outsourcing Logistics Means Losing Control
The Truth: Third-party logistics mean loss of control - it doesn't. A good 3PL will still offer much-needed visibility in your inventory, shipments, and performance through strong technology platforms and access to real-time data. Businesses can spend less time attending to the day-to-day realities of logistics and more time in better oversight using data-driven insights in strategy-making.
Key Insight: Outsourcing enables companies to focus their energy on core competencies while maintaining full visibility and control over supply chain performance.
Myth #3 3PLs Are Too Expensive
The Truth: While there are some costs to outsourcing, a 3PL will save businesses money in the long run. Gains in efficiencies in professional warehousing, streamlined transportation, and optimized fulfillment often far outweigh investment. In addition, 3PLs offer cost benefits through economies of scale, including labor, shipping, and technology infrastructure.
Cost-Saving Benefits:
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Myth 4: 3PL Providers Don't Understand My Industry
Reality: Most 3PLs focus on servicing specific industries and have unique supply chain experiences and expertise within these industries. Such items include refrigerated storage of perishable items to customized kitting solutions in the eCommerce business, bringing focused knowledge and tailored solutions to help with industry-specific requirements.
Example: At American Warehouse Inc., we work with a variety of different businesses in a variety of different industries, like retail, healthcare, and manufacturing, tailoring our logistics solutions to each client's market needs.
Myth 5: Changing to a 3PL Is Too Complex
The Reality: Onboarding at a 3PL can be a complex process; however, top performers have streamlined it into a fluid, smooth onboarding process to welcome the integration with as little disruption and, in effect, generate efficiency starting with day one.
Making it More Simpler
Myth 6: 3PLs Are Good for Basic Warehousing and Shipping
Truth: Modern 3PLs are far more than just warehouses and shipping locations. They provide a variety of services that add value to these basic functions, such as:
These services help businesses create a better customer experience and reduce operational complexity.
Clearing away misconceptions of 3PL services and better decision making, which a business could reach more efficiency in and scalability on using the optimum scope of outsourced logistics activities.
At American Warehouse Inc., we’re committed to providing customized, scalable, and transparent logistics solutions that empower businesses to thrive. If you’ve been hesitant to explore 3PL services, now is the perfect time to discover how outsourcing can transform your supply chain and fuel your growth.
Great insights! One of the biggest myths about 3PLs is that outsourcing means losing control—but the right technology actually gives more visibility and efficiency.