Better understand 3PL and their benefits for your online business

In a competitive environment where meeting customers' expectations in the shortest possible time and across the globe has become an important issue, 3PLs are emerging as the most profitable logistics solution. By outsourcing services such as freight forwarding, handling, warehousing, transport and express delivery of their products, e-merchants can now focus solely on their e-business and e-shop.

This alternative allows for the optimisation of delivery times, which guarantees better customer satisfaction. Companies specialising in this field have understood the importance of this. They are constantly refining their technologies to meet the modern requirements of e-logistics. In France, too, developments have been noted with service providers such as Cubyn, which has a great deal of expertise.

E-commerce 3PL or Third-Party Logistics

Third-Party Logistics is defined, in simple terms, as the outsourcing of everything related to the logistics of a company or business. A company specialising in 3PL is therefore a company to which you can entrust everything related to logistics. A 3PL company can not only take care of the delivery, but also the packaging of the products, their storage in warehouses, their shipment to ports or airports, their distribution and many other details. A 3PL provider can also take care of customer service.

Traditionally, large physical retailers and the military have used this method to expedite the transportation of their products. In order to be more competitive in the market, manufacturers are partnering with transporters who have the appropriate expertise. The latter take care of everything related to logistics processing, as they have the necessary infrastructure and other tools.

How can a 3PLs for e-commerce be useful?

In today's digital age, things have changed. Purchases and sales are increasingly made via the internet. E-tailers are increasingly taking the lead in providing consumers with products of all types. But with the growing demand, e-shops are no longer necessarily able to adequately meet delivery time requirements. In addition, the cost of packaging and transporting packages seems to have a serious impact on the turnover of online businesses. It is therefore necessary to find a more beneficial alternative. And 3PLs seem to be able to provide solutions to the problems at stake.

What can one expect from 3PLs?

A 3PL provider's duties goes beyond simply transporting goods. Here is a non-exhaustive list of services that your 3PL partner can provide

• storage in warehouses (normal or cold storage) ;

• management of the entire logistics chain

• picking or preparation of orders

• packing and packaging

• handling;

• transport of parcels: air or sea freight;

• shipping by containers or other means;

• receiving;

• distribution.

In short, you can entrust everything that is not directly related to your product sales business to your Third-Party Logistics partner.

The advantages of 3PL for e-shops

By delegating certain tasks to a 3PL company, you are relieving yourself of several obligations that slow you down in your business. Also, with e-commerce, the distribution areas are becoming more and more extensive. It is now a question of being able to satisfy customers who are located in nearby areas as well as in remote regions. Demand has to be met both nationally and internationally. A third-party logistics company gives you access to distribution areas that were previously inaccessible or too costly - which necessarily translates into boosting your sales and winning more markets.

In this way, 3PLs help to meet the new challenges of e-commerce. More concretely:

• you gain in profitability ;

• you gain in efficiency and effectiveness: faster deliveries and therefore better customer satisfaction;

• you save on expensive investments (setting up your own goods distribution branch is very costly);

• you can offer your customers various means of delivery;

• you can better manage seasonal fluctuations in demand. You are no longer obliged to hire seasonal workers;

• and most importantly, you can manage your time more efficiently.

When to use a 3PL provider?

There are some key indicators that let you know when it's time to use a third-party logistics company. Since not all online businesses have the same realities, it would be inconvenient to define a precise rule for when to use 3PLs. You should therefore be able to self-analyse.

But when the delivery of your products is no longer efficient, it's time to ask yourself questions. If you are no longer able to meet your delivery deadlines, it may be time to work with a specialist. A good indicator is also the fact that managing your e-commerce supply chain is becoming very time-consuming, without generating any significant benefits. It is therefore a matter of assessing your business to see whether or not it is necessary to involve a specialist in this area.

How to choose the right 3PL partner?

There are some key points to consider when deciding whether a 3PL provider is right for your e-business.

Which management tools?

What is the place of data in the provider's processes? With globalisation, technology must be at the heart of the operation of Third-Party Logistics services. A good service provider must have sophisticated tools and a good network of carriers. Excellent integration of information systems between 3PLs and the end customer is essential to reduce response and delivery times. Also, the tracking and feedback platforms allow for good communication at all levels of the network, for better customer satisfaction.

In addition, the management system proposed by your ecommerce 3PL partner must be able to integrate seamlessly with your e-commerce platforms.

What are the warehousing arrangements?

Are the warehousing operations offered by your partner automated? Are there multiple and/or reliable warehouse locations in their network? How many manual and how many automated warehouses are there? These are all questions to ask!

What are the areas of intervention?

The question of specialisation is very important. As mentioned earlier, not all Third-Party Logistics companies provide the same services. While some companies cover management, storage, packaging, order processing and transport, others are only involved in one specific area.

Costs and customer service

Make sure you read and understand all the terms of the contract your partner is offering you. Try to assess the total costs in relation to the services offered.

Customer service is also of prime importance. Is your provider customer-focused? Are there clear and consistent processes related to this aspect?

Cubyn, your French 3PL partner

Active since 2016, Cubyn is a French company specialised in e-commerce 3PL and based in Paris. Its services are based on the high technology employed, which guarantees outstanding efficiency. The company uses advanced algorithms and tools in-house to optimise the entire logistics process. Cubyn puts the characteristics of parcels into perspective to choose the most suitable carriers, depending on whether it is a standard, relay or express delivery method. By placing technology at the heart of the entire process, companies can make their logistics operations faster and more efficient.

Cubyn's Fulfillment offer covers the reception of products in its warehouse in Gennevilliers in the Ile-de-France region, stocking, packaging, order preparation or picking, shipment by land or air and parcel tracking. The company also places particular emphasis on customer service. It is the ultimate reference in 3PL e-commerce and offers its services to French e-merchants wishing to outsource their logistics reliably.

Ship with Cubyn and improve your sales!

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