Business Services

Why Third-Party Logistics is a Booming Industry

If you consider just how many online retailers there are (millions), all of their products somehow have to find their way to the customer’s home address, and without 3PL providers, the online retail industry would simply grind to a halt. Next time you order something online, take note of the delivery company, who will certainly be a logistics provider who takes on the role of fulfilling orders and delivering them.

Set Up for the Work

So, how exactly does a 3PL work? Well, firstly, they would have a large warehouse facility, plus a team of dedicated packers, and the client company would regularly deliver their products and packaging. Once an order is received, the data is automatically sent to the 3PL company who set about packing the goods and shipping them out to the buyer’s address. One such company is FCB Logistics who are based in Queensland, and they are geared up to handle any logistic operation, so if you need some affordable logistics, they are the people to talk to.

Consignment Tracking

Technology allows the customer to find out exactly where their package is at any given time, and with a cloud-based database, everyone is on the same page. Once a package leaves the warehouse, it is tagged, and can therefore be tracked through its journey to the customer, which is ideal.

The Surge of Online Consumerism

When you actually think about it, what’s not to like about shopping online? You don’t even have to leave the comfort of your own home, and within a couple of days, your goods have arrived! Not only that, buying online usually means a saving of around 10-15% and every little helps when it comes to saving money. There are literally billions of online consumers who make purchases, and the future is looking to attract even more shoppers to online solutions, indeed, the traditional retail industry is in serious decline and experts are predicting the end of the High Street retailer is on the horizon.

Consumer Protection

In the early days of e-commerce, people were naturally concerned that the goods they order and pay for, might not arrive at all, yet there are several failsafe protections in place for the online consumer, plus giving your credit card details over a secure network is a safe as can be. Even if the supplier went out of business, your credit card insurance would cover the cost of the goods you purchased, which is why people are not worried when they make an online purchase.

The Emergence of Third-Party Logistics

The online shopping industry spawned the 3PL industry, as all those ordered items must be packed and shipped, and it is only the huge online retail giants like Amazon that have their very own logistics operations, the rest outsource this to specialised providers. In the past ten years, the 3PL logistics industry has doubled in size and there are no signs of this exponential growth slowing down, as more and more consumers take to the Internet to order goods.

What Does the Future Hold?

Imagine a city with virtually no retail outlets, with perhaps the exception of food and beverage, which will always be in demand. Retail stores will be replaced with huge warehouses and an army of drones will deliver the goods, and the reason that this will be the future is that traditional retail outlets simply can’t compete with the low prices that the online retailer can offer.

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