If you are the owner of any kind of business you have probably heard a lot when it comes to third party logistics, but if you aren’t familiar, then let us help you out. 3PL is the ability for you to outsource everything that has to do with shipping to a third party logistics provider in order to have everything run much smoother and quicker. There are several different type of these providers and they can all offer you something different, however we won’t be discussing that today. Instead, we are going to be taking a look at some of 3PL third party logistics pros and cons in order to help you figure out whether this is the right way to go for you or not, so make sure to keep reading to find out more.

You get to work with the best in the business

One of the best benefits of working with a third party logistics provider in Australia is definitely the fact that you will be able to work with some of the best in the business. The role of a 3pl company is that these companies are specialized and are mainly focused on optimizing the way that a company handles shipments, which also makes them experts when it comes to things like shipping, warehousing, fulfilment and so on. And even though you could go through a lot of trouble in order to set up your very own team to deal with these issues, that is something that is seldom worth the effort, since it will take a lot of time and a lot of money in order to do that. When you hire a company to do it for you, you are saving yourself time and effort, and you are saving yourself from wasting money.

There is a limit overhead

Next on the list of 3PL third party logistics pros and cons is the fact that there is a limit overhead. When you are the owner of a business that is trying to set up your very own warehouse, one of the biggest challenges is the overhead needed in order to lease the space and hiring the necessary fulfilment team. Even if you do manage to get everything running, maintaining it will be extremely costly and something that can definitely eat into your cash flow pretty quickly. However, when you are working with a provider and you leave all of this to the professionals, lets you minimize your costs when dealing with the fulfilment process, and that is exactly what you want- minimal cost for maximum results.

You don’t get much control

Something that is worth mentioning as a downside to working with a provider is the fact that you may end up having no control over things and this is because a lot of the time business owners actually end up working with a company that isn’t settled locally. For you this means that you won’t always be able to access your products when you need to, and if you happen to run into any kind of issues when it comes to quality control, this will definitely end up being an issue. The main goal that business owners should have is to always keep their products close to them in a warehouse location that they can easily reach because it cuts down on some of the shipping costs and delivery times, but when you are working with a 3PL provider, it may just end up to be the complete opposite of this.

To decide whether 3PL is a good move for your business or not is a decision that you will have to make on your own, however as you can see there are some definite pros and cons to this strategy. We hope you liked seeing the 3PL third party logistics pros and cons and that this article helped you figure out what is the right move for your business.

Do you have questions or comments?