3PL warehousing might be the growth tool your business has been looking for, but what is it, how does it work and how do you find the right service for you?

All good questions, and ones we’re here to answer. LTS Global Solutions has years of experience in the global warehousing and logistics industry, and we’ve put together this handy guide containing everything you need to know about 3PL warehousing and how it can help you achieve the next stage of your growth journey.

What is 3PL in Warehousing?

3PL stands for ‘third party logistics’, which is an increasingly common service used by all kinds of businesses. In short, it’s where businesses such as manufacturers or retailers outsource their logistics to an external provider, who handles everything from warehousing to delivery on their behalf.

Rather than ‘first party logistics’ or ‘second party logistics’ which require the commissioning of services on a case-by-case basis, 3PL logistics providers integrate themselves with your business. They act as your own logistics department, allowing you to focus on your core business activities without having to build and maintain complex logistical networks and fleets.

How Does a 3PL Warehouse Work?

3PL warehousing is a key stage in the 3PL process. It’s where your 3PL provider will receive, store and dispatch your goods from.

Every stage of the warehousing will be handled by your provider. They will take receipt of your goods and sort and store them. When an order comes through your integrated application programming interface (API), your 3PL warehousing provider will pick and pack the required items before dispatching them for delivery.

Benefits of Using a 3PL Warehouse Provider

3PL warehousing has a range of benefits that make it an attractive service to businesses of all sizes and types:

Scalability

3PL warehousing services work on a contract basis, meaning they can be scaled up or down as you need, depending on the evolving requirements of your business. This makes them a far more adaptable solution than in-house or even 1PL or 2PL logistics.

Efficiency

3PL warehousing providers are usually well established, sizeable operations. This means not only do they have a good deal of experience in logistics, but they can also leverage their size and knowledge to deliver a highly efficient service, saving time and money in the long-term.

Value

Building and maintaining logistics services and transport fleets means acquiring large numbers of staff and high-value assets such as vehicles and management systems. It’s costly and time-consuming, and if your business ever slows, your capital is tied up in these assets. 3PL warehousing and logistics save you time and expenses and can be far more cost-effective.

Streamlined Performance

A wealth of experience and expertise allows 3PL warehousing providers to streamline performance with the aid of advanced software. This contributes to an improved customer experience and increased value for money.

What are the Types of 3PL Warehouses?

3PL warehouses come in a few different types, each serving a specific purpose:

• Public warehouses – public warehouses are used by 3PL providers serving multiple clients under the same roof
• Ambient storage – temperature monitored 3PL warehousing for goods that need to be stored at room temperature
• Pallet storage – dedicated pallet facilities for receiving, storing and dispatching pallets of goods
• Food warehouses – specialised warehousing for food and drink products, with temperature and humidity controls
• Contract warehouses – contract warehouses are exclusive facilities to cater to individual clients or specific groups of clients
• Bonded warehouses – facilities that are licensed by the government to store imported goods while they await customs processing
• Hazmat warehouses – warehouses that are fitted with specialist ventilation, fire suppression and safety systems to allow for the storage of hazardous materials
• Fulfilment centres – these are designed to cater to the e-commerce world, providing everything from storage to order picking, packing and shipping under one roof. LTS is a registered fulfilment house under HMRC’s Fulfilment House Due Diligence Scheme.
  Distribution centres – large facilities created to handle and sort high volumes of goods before distributing them to storage depots or retail locations

What to Look for When Choosing a 3PL Warehouse Provider

So, what should you look out for when choosing your 3PL warehousing provider? There are a few key indicators:

Experience and Expertise

When assessing a potential provider, identify how many years of experience they have as well as whether they’ve worked with other businesses in your particular sector.

Technology and Systems

Being successful in the world of modern logistics means making use of the latest technology, from advanced software to automation systems and more. Make sure your provider is up to speed and can offer the levels of efficiency and accuracy you need.

Quality Customer Service

Customer service is key, both for you and for your customers. If your 3PL warehousing provider is going to be handling every stage of your logistics, you need to make sure that they’re going to treat your customers with just as much respect as you would.

Reliable Security

Before entrusting your stock and data to a 3PL provider, it’s crucial to ensure that they have adequate security measures in place. Discuss how they protect themselves from data theft as well as physical theft.

Fully Trained Staff

Even though not directly employed by you, the teams working at your 3PL warehousing site will act as an extension of your staff. You need to be sure that they’re adequately experienced and trained to handle your goods safely and efficiently. Ask your provider about their training and management methods.

Commitment to Excellence

You’re determined to do the best by your customers and foster the growth of your business, but is your 3PL warehousing provider? A 3PL partner that values continued development and high standards is crucial.

Trusted Transportation Services

Warehousing is a key part of the puzzle, but it’s nothing without effective transportation. Evaluate the transportation services that your 3PL provider will be using and make sure they meet your needs and expectations.

Which Businesses Should Use a 3PL Warehouse?

3PL warehousing is designed to suit almost any business. Whether you’re working in retail, automotive, manufacturing, food and beverages or any kind of industry where goods are produced at scale, it’s the perfect way to free your business for further growth.

The right 3PL partner will free you from the time and cost expense needed to grow and maintain a logistics network and allow you to focus on what you do best.

Why Choose LTS for Your Warehouse Provider

LTS Global Solutions has been providing expert warehousing and logistics services to businesses from a huge range of industries for many years. We operate a dedicated facility and utilise advanced software tools and automation capabilities to deliver a seamless experience for our customers and theirs alike.

We provide 3PL and supply chain solutions designed to streamline your operations and control costs. Partnering with LTS gives you peace of mind knowing your storage, logistics and shipping operations are in the best hands.

We’re truly committed to the success of our customers’ businesses and take great pride in the quality of our services. To learn more about how we could help you, reach out to our team today by calling 0121 753 0080, emailing info@ltsglobalsolutions.com or filling out our contact form.