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A common term in the shipping and warehousing world, 3PL stands for third-party logistics. These companies provide others with outsourced logistics services for storing or shipping, simplifying their operations. Businesses use 3PLs to manage their supply chains and coordinate fulfillment and distribution services.

Who Uses This Service?

3PLs have had a major impact on the retail industry. Instead of investing in warehouses, recruiting full-time employees who are trained in supply chain management, and handling transportation, a company can work with a 3PL to fulfill these needs. These logistics teams manage all aspects of inventory and shipping, ensuring that their clients’ customers receive their shipments quickly.  

3PL-Waipahu-HIThis is particularly important for businesses with seasonal periods, such as retailers who see an uptick in sales during the holidays. Instead of getting buried under an influx of orders, companies can enjoy the increase in revenue while having access to more resources and space for inventory. Their logistics partner will handle the supply chain, freeing up the company’s resources for other projects.  

Why Are 3PLs Useful?

For many companies, outsourcing logistics is more cost-effective than using an in-house supply chain. 3PLs have resource networks that allow them to leverage relationships and volume discounts, providing lower overhead costs and faster service.

With shipping and fulfillment handled by a third party, retailers can instead focus on shaping the customer experience and coordinating core operations. In fact, in a 2017 survey of those that use logistics services, 75% reported a reduction in overall logistics costs, while 86% said using 3PLs helped improve customer service.

 

As the oldest trucking and warehousing company on Oahu, Hawaii Transfer Co. Ltd. is also the state’s largest transportation fleet. This 3PL team handles third-party logistics to accommodate the needs of the island’s businesses, providing inbound and outbound shipment coordination, cross docking, and delivery routing. Learn more about their public warehousing services online or by calling (808) 677-3111.

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