Many startups and small to medium-sized businesses don’t have the manpower or financial resources at hand to manage all of their supply chain and logistics operations.
That’s where a 3PL company like ShipBob can help by managing distribution, warehousing, and other supply chain services. Before we learn more about ShipBob, let’s discuss what 3PL or third-party logistics provider is all about.
What is 3PL?
Companies that provide third-party logistics, or 3PLs, are specialists in providing warehousing, fulfillment, and return logistics support – especially to businesses without a dedicated logistics team.
Businesses typically utilize a third-party logistics company to outsource ground shipping and distribution, allowing them to focus on business growth instead of spending significant resources on logistics.
Services provided cover every aspect of the transportation and storage of goods at destination.
The vast majority of third-party logistics companies either own or lease the warehouse space, so you don’t have to invest in that infrastructure. In some cases, the 3PL does not operate their own private transportation network; rather, they rely on independent shipping companies to carry out the delivery of the goods on their behalf.
Utilizing the services of third-party logistics providers (3PLs) may make it feasible for companies with limited resources and manpower to scale up their operations.
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ShipBob is a technology-enabled third-party logistics provider that allows small to medium-sized businesses to fulfill their orders seamlessly. The company offers omnichannel analytics along with comprehensive reporting through a feature-rich dashboard that helps businesses to make informed decisions.
ShipBob 3PL Process
With the use of over 100 integrations and flexible API technology, ShipBob allows you to connect your store to the 12 most popular seller platforms, import all of your SKUs, and share your inventory. Once you have gone through that process, it takes just about one working day for ShipBob to process the entire inventory. ShipBob also offers 2-day express shipping to maintain high customer satisfaction for your brand.
ShipBob Services and Benefits
Before your business considers hiring a 3PL company for supply chain and logistics management, it is crucial to take some factors into consideration. You may want to hire a third-party logistics provider if:
- When you want to expand your business across multiple regions quickly
- When you want to focus more on business growth instead of on logistics
- When the company doesn’t have enough capital to invest in warehouses
- When you want to scale up company operations at a rapid pace
Your business can acquire a number of benefits by outsourcing logistics to a 3PL warehousing company like ShipBob.
- ShipBob works with almost all major shippers, providing a 99.95% accurate delivery rate.
- There are no monthly minimums or maximums so you can avail 3PL warehousing services according to your needs.
- The company also offers affordable pricing along with EDI compliance and business-to-business fulfillment.
- ShipBob can transport your products within a two-day window for ground shipping and there’s also an option for same-day delivery.
ShipBob 3PL Warehouse Locations and Coverage
ShipBob has more than 30 global fulfillment locations across 3 continents. The company mainly serves businesses in the United Kingdom, the United States, Australia, Canada, and the European Union (EU). Since ShipBob is FDA-certified for climate control and handling, it makes for a suitable 3PL partner for brands selling consumable, health, and beauty products.
With ShipBob, you don’t only get storage space but a complete logistical solution with security and inventory management. Picking and packing along with material packaging that includes poly mailers and bubble mailers is bundled into the cost.
Other 3PL Companies
Apart from ShipBob, there are a number of other 3PL companies you can choose to partner with. Some of these include the following:
- FBA – With close to 300 warehouses that are located globally, FBA can serve a large number of businesses across different industries.
- Red Stag – Although it is a relative newcomer in the 3PL industry, Red Stag offers its services across all of the continental US. They currently have 2 warehouses with expansion plans underway.
- FedEx – As one of the most popular logistics partners, FedEx provides 3PL services all around the world with hundreds of warehouses.
How to Find the Best 3PL for Your Business
If you’re running a company, you know that not all solutions are the same. Because of this, it is essential to have a solid understanding of your own objectives, requirements, and ambitions before choosing a 3PL partner. Services you may want to check are included are: inventory management, returns management, delivery within 1 or 2 days, distributed inventory, B2B and D2C fulfillment, bespoke notes, kitting and customization, custom labels, and more.
You can determine if a third-party logistics provider (3PL) is reliable by reading reviews written by other businesses.
3PL ShipBob FAQs
- What is the cost of hiring a 3PL?
There are a wide range of services available from various 3PL companies, and an equally wide range of pricing structures. Depending on your needs, you’ll pay different amounts so make sure you know what services you want to outsource.
- Is Freightos.com a 3PL?
No. Freightos.com is an online booking platform – not a logistics provider. This means that Freightos.com can help when it comes to finding shipping to a 3PL service provider warehouse, but will not be providing these services directly.
- How many third-party logistics (3PL) warehouses are there?
There are about 14,000 separate companies operating as third-party warehouses in the United States alone.
To learn more about 3PL check out our other guides including (3PL) Third Party Logistics Providers, How Does 3PL Work, and Third-Party Fulfillment.