3PL - Technology Structure, Logistics Management Video Lecture | Logistics Management - B Com

I'm Jessie janae and this is shipping
things and today we're talking about
3pls are they right for your business
and how do you figure out how much it
will cost you three PL stands for
third-party logistics it's basically a
layer in your supply chain helping you
with a logistics piece and I know that
sounds a little complicated but it's
actually really simple think of it like
this your business makes a product and
then delivers it straight to the
customer that would essentially be a 1
PL then if you start involving shippers
like UPS or FedEx now you've got someone
in between that's a 2 PL and then let's
say you supply a warehouse with your
product which then ships it on to the
customer on your behalf that my friend
is a 3 PL a 3 PL is a physical warehouse
it helps you with things like freight
warehousing distribution and they can
even be industry specific like cold
storage for food businesses but if
you're an e-commerce Peschel eise's an
inventory management fulfillment and
returns if you're asking yourself
whether you're big enough to start
working with a 3 PL that actually isn't
the best question figuring out whether 3
pales the right fit for your business
all comes down to the math so let's jump
into how 3 PL is charged through PL
usually has 4 base sheets
it starts with storage they're gonna
charge you for how much space your stuff
takes up in their facility then you've
got picking picking is what you pay for
having a human being walk around their
facility
grab your stuff and put it in a box then
you've got packaging any packaging you
haven't already prepaid for or sent to
them they're going to charge you for
and finally postage postage is what you
pay fraction a shipping your product to
your customer I just want to remind you
that 3 peels of a really hard job to do
- it's almost like fractional ownership
of a warehouse instead of you having to
own a big facility and pallet racking
and it having employees doing shipping
everyday
they do that on your behalf they also
have incredible software systems a lot
of times that help your business run
like a well-oiled machine so how do you
know if you're picking the right 3pl for
your business well here's a few criteria
location it's really important that the
location of the warehouses is nearby the
manufacturing or
are geographically optimized for where
you're shipping and price we already
talked about all the different fees but
make sure to really do the math open a
spreadsheet plan it out packaging a lot
of three peels will not actually work
with custom packaging so make sure you
plan out exactly how you want your
product to look before selecting a
partner and finally scalability it's
really important to know exactly how
many facilities your 3pl has and whether
they fit in with your growth plans think
about where your business is going to be
in a year are they a good fit for you
then choosing a three PL is sort of like
choosing a mate they're gonna have all
your inventory and you're gonna be
working with them constantly to make
sure your customers are happy so make
the decision wisely you do not you do
not want a nasty breakup
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