The Role of 3PL Fulfillment in Modern Supply Chain Management

Juliet D'cruz

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The Role of 3PL Fulfillment in Modern Supply Chain Management

Growing a business to the maximum possible level is the dream of almost every businessman and entrepreneur. You need to focus on numerous things to grow your business. One of the most important things that you need to focus on is supply chain management. It is an important management process and plays a key role in your inventory and order management system. 

When you can manage your supply chain, it means you don’t have command of the production of goods as per demand.

Modernization and digitization in the business field have made it easy for young businessmen to manage the supply chain. One of the most important things that can be helpful in supply chain management is 3PL fulfillment. This fulfillment process can help you manage the supply chain in the best possible ways. Let’s try to find out the role of 3PL fulfillment in supply chain management. But first, you must know the basics of supply chain management and 3PL fulfillment.

What is Supply Chain Management?

Supply chains involve several steps from buying raw materials to making products and delivering them to potential customers. Supply chain management is the management of different processes involved in the formation and delivery of products. Managing the flow of the complete process of product manufacturing using raw materials is also a part of it. After that, packing, shipping, delivering, and then dealing with returns are also a part of supply chain management. 

What is 3PL Fulfillment?

A 3PL fulfillment process is the outsourcing of the order fulfillment process of your company to some experts. The company you choose for 3PL fulfillment should not be a 3rd man only but your potential partner as well. 3rd party logistics involve the picking, packing, shipping, and delivery of the products by a team of experts. Inventory management and warehousing is also done by the same 3rd party.

How Does 3PL Fulfillment Improve Supply Chain Management?

You must be thinking about how outsourcing order fulfillment to a 3PL provider can help you with supply chain management. The easiest way to find the answer to this question is to go through the benefits of 3PL fulfillment in supply chain management. Let’s move forward.

Access to Experts

When you opt to outsource your order fulfillment process, you have access to experts of the field. You will never want to outsource your order fulfillment process to someone who is not an expert in the field. Therefore, 3PL fulfillment enables you to contact highly experienced 3PL providers. These experts can help supply chain management as well because order fulfillment supply chains are correlated.

Enable You to Focus on Core Competencies

When you opt for 3PL providers, you don’t need to focus on several management or organizational processes as highly experienced individuals are dealing with them. As a result, you can focus on the core competencies instead of diverting in several organizing tasks. Non-core functions need to be managed by experts because they are also important for your business. It is helpful in supply chain management as your business will have the benefits of logistical expertise.

Flexibility and Scalability of Enterprise

3PL providers help in supply chain management by adding to the flexibility and scalability of the enterprise. It utilizes the distribution and supply of resources based on the current demands or requirements of your business. So, when the demand is low, the enterprise will be slowed down. On the other hand, when the supply-demand is high, the enterprise is flexible enough.

Saves Time and Money

The major benefit of outsourcing order fulfillment is time and money saving. Outsourcing saves your time as you don’t have to go through numerous management tasks when delivering orders. As a result, you can utilize this time for better supply chain management. The same is the case for money. Opting for an Order management system can also be helpful in this regard as it also costs less and can help in supply chain management as well. 

Bottom Line

3PL fulfillment can help you with modern supply chain management. Apart from that, you can get a robust WMS like Deposco as well to get assistance. Deposco gives you multiple benefits as it can manage inventory, orders, and supply chain at the same time.

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