What is a 3PL?
What are the benefits of using a 3PL?
Are 3PL and fulfillment the same?
Why is DCX a good 3PL option for your company?
3PL stands for Third Party Logistics. It refers to the outsourcing of all or part of a company's logistics function to a third party. Logistics service providers act on behalf of the original company for product storage, receiving, shipping, and delivery-related operations.
The term 3PL is sometimes confused with "warehousing services," but 3PL is generally used to refer to a more comprehensive logistics solution. In this article, we will explain 3PL in a broader sense, including logistics consulting services, import/export freight forwarding services, customs brokerage, and paperwork etc.
A 3PL should be able to provide the following services:
Picking & Packing
Cost efficient shipping methods
Accurate and real time inventory visualization
Logistic expert consulting service
import/export freight forwarding services
Customs clearance and paperwork preparation
When integrated with a Shopify store, a 3PL service can help fulfill orders, manage inventory, and handle shipping and returns on behalf of the e-commerce business.
This allows ecommerce entrepreneurs to focus on other aspects of their business, such as marketing and product development, while leaving logistics to the experts. Some 3PLs have an app in the Shopify app store, which makes it relatively easy to connect your store to the warehouse or fulfillment centers, making the setup process smoother.
While 3PLs and fulfillment services are related, they are distinct concepts in terms of the scope of services they offer and their coverage in the supply chain.
3PLs provide comprehensive logistics services, including warehousing, transportation, and distribution. As such, 3PL companies provide these services on behalf of their clients and are responsible for operating and improving the entire supply chain, from procurement to delivery.
Fulfillment services, on the other hand, refer to services that store products on behalf of companies and perform shipping processes such as picking and packing according to shipping instructions. As such, fulfillment is generally considered to be one of the services that a 3PL can provide.
In short, fulfillment services are a part of 3PL. Therefore, many logistics companies that offer 3PL also offer fulfillment services.
3PLs cover these benefits:
Cost saving & increased efficiency:
You can reduce the costs and man-hours associated with hiring and training warehouse staff. In addition, you can save the cost of developing and upgrading the inventory management system and leasing the warehouse.
And in some cases, you can get a higher quality service at a lower price. For example, you can use a warehouse management system (WMS) that is more advanced than what you can develop in-house, as well as services such as temperature control in the warehouse, building a security system, and disaster prevention system. As a result, your company has more time and energy to focus on important tasks such as product development and marketing.
Improved customer satisfaction:
Logistics providers that offer 3PL can help their customers get their goods to buyers faster, more reliably, and with better tracking and tracing. This can typically lead to increased customer satisfaction and repeat sales.
By outsourcing logistics operations, it is possible to entrust some of the logistics risks to logistics companies that provide 3PL.
Companies that provide 3PL will handle a range of operations related to product transportation, inventory management, customs clearance, etc. in accordance with industry laws and regulations.
And even when unforeseen challenges arise, 3PLs (often with their own networks) can quickly find alternative solutions and keep your supply chain running smoothly. Logistics providers that offer 3PL often have large networks of resources that allow them to operate more efficiently than smaller logistics companies.
We believe that DCX is among the best 3PL services in the market because:
DCX is built on NX Group's years of experience and expertise.
DCX gives you access to a wide range of NX Group's logistics and fulfillment services. The scope of our services is not limited to warehousing, but also includes customs clearance, import/export services, land, sea and even air transportation services.
DCX has warehouses and staffs.
By outsourcing your logistics to DCX, you can use the warehouses and personnel of the NXs Group. In particular, the NX Group is constantly trying to improve logistics, and the know-how for improvement is shared within our group. In addition to performing daily simple logistic tasks accurately, we can continuously discover and propose logistic solutions for your business.
DCX is the WMS that connects to Shopify.
As a cloud-based system, DCX will be continuously updated to the latest Shopify API connection mechanism, with monthly upgrades for improvements and additional features.
We believe: With Nippon Express Group's global 3PL network and superior physical logistics operations, as well as DCX's constantly updated WMS capabilities, we can become the best logistics partner for our customers.