Benefits of Cooperating with 3pl Distribution Logistics
Are you worried about rising logistics costs if you manage them in-house? Lack of real-time visibility into inventory, orders, and shipments? Want to improve order fulfillment speed, accuracy, and the ability to efficiently handle special requests or returns? If you are also troubled by these problems, then please read on to learn how shopv can help you solve these problems.
What is distribution logistics?
Distribution logistics, also known as distribution management or supply chain distribution, is a critical component of the supply chain process that involves the efficient and effective movement of products from the manufacturer to the end consumer. It encompasses various activities and processes that ensure the timely and cost-effective delivery of goods to the right location.
The basic task of distribution logistics is to provide customers with safe, efficient and fast logistics and distribution services to meet customer needs for goods. In order to achieve this task, distribution logistics requires a series of activities, including stock preparation, storage, sorting and distribution, assembly, distribution transportation and delivery services.
Key elements of distribution logistics include
- Order Processing
Managing and processing customer orders, including order entry, order picking, and order packing.
Storage and management of inventory in warehouses or distribution centers, involving tasks such as receiving, storing, and picking products.
- Inventory Management
Monitoring and controlling the levels of inventory to ensure that products are available when needed without excessive overstock.
Selecting and managing the transportation modes (e.g., trucks, ships, planes) to move products from one location to another. This involves route planning, carrier selection, and tracking shipments.
Ensuring that products are appropriately packaged for safe and efficient transport.
- Order Fulfillment:
The process of assembling and delivering orders to customers, whether they are retailers, wholesalers, or end consumers.
- Reverse Logistics
Handling product returns and the flow of goods from the end customer back to the manufacturer, including recycling or disposing of products.
Efficient distribution logistics is crucial for businesses to meet customer demands, reduce lead times, minimize inventory carrying costs, and enhance overall supply chain performance. Advanced technologies such as barcoding, RFID (Radio-Frequency Identification), and advanced software systems are often employed to optimize distribution logistics processes.
What steps does the distribution logistics process include?
This is the basic work of distribution, including sourcing, ordering, purchasing, collecting, purchasing and related quality inspection, settlement and handover, etc.
Storage in distribution has two forms: reserve and temporary storage. The distribution reserve is the turnover reserve and insurance reserve to ensure the stability of distribution, while the temporary storage is mainly to adjust the rhythm of distribution and delivery, and the temporary storage time is not long.
Sorting and distribution
This is a functional element that makes distribution different from other forms of logistics, and is also an important supporting work for the success or failure of distribution. Sorting and distribution are preparatory tasks for improving and supporting delivery, and are an inevitable extension of different distribution companies competing in delivery and improving their own economic benefits.
When the delivery quantity of a single user cannot reach the effective carrying load of the vehicle, there is a problem of how to concentrate the delivery goods of different users and carry out matching loading to make full use of the transportation capacity. This requires assembly.
Distribution and transportation
Transportation belongs to terminal transportation and branch line transportation in transportation. In distribution transportation, due to the large number of distribution users and the complexity of general urban traffic routes, how to combine the best routes and how to effectively match the equipment and routes are characteristics of distribution transportation and are also difficult tasks.
Transporting the prepared goods to the user is not the end of the distribution work. This is because there are often inconsistencies between the delivery and the user's receipt of the goods, which makes the previous efforts in the distribution in vain. Therefore, in order to successfully realize the handover of the delivered goods, handle relevant procedures effectively and conveniently, and complete settlement, we should also pay attention to the unloading location and unloading method.
Is logistics and distribution the same?
Logistics and delivery are not exactly the same. Although they are closely related, there are some differences. Logistics involves the physical flow of items from the supply place to the receiving place. According to actual needs, the process of organically combining transportation, storage, loading and unloading, packaging, circulation processing, distribution, information processing and other functions to achieve user requirements.
Distribution is a link in logistics, which focuses more on distinguishing goods to be transported according to their destinations to facilitate logistics operations. Therefore, it can be said that distribution is a part of logistics, but it is not the same as logistics.
There are several benefits to working with a 3PL (third-party logistics) for delivery logistics. Here are some of the main benefits:
Expertise and experience
3PLs usually have extensive logistics knowledge and experience and can provide high-quality delivery services. They have a professional team and advanced logistics technology that can effectively manage the transportation and distribution process to ensure that goods arrive at their destination on time and safely.
In addition, many 3PLs invest in the most advanced logistics technology, such as shopv, which provides customers with advanced inventory management, order processing and freight tracking systems.
Reduce logistics costs
Cooperating with 3PL can help companies reduce logistics costs. 3PLs often form partnerships with multiple shipping companies, allowing them to achieve economies of scale and obtain better shipping rates. In addition, they can also provide customized distribution solutions to optimize the transportation and distribution process according to the needs of the enterprise, further reducing costs.
Outsourced logistics means businesses don’t need to invest in warehouses, transport fleets or other infrastructure. This can significantly reduce capital and operating expenses.
Scalability and flexibility
It enables businesses to quickly expand distribution capabilities as needed. Whether it's seasonal surges, peak sales periods or new product launches, 3PLs can provide flexible delivery solutions to meet the needs of businesses. This scalability and flexibility helps businesses better respond to market changes.
3PLs are experienced in optimizing logistics processes, resulting in more efficient and streamlined operations. With expertise in route optimization and order fulfillment, 3PLs can help reduce delivery times and improve overall customer satisfaction.
Improve customer service
3PLs often provide real-time shipment tracking and updates, allowing businesses to know the location and status of their shipments at all times. This transparency helps improve customer service levels and strengthens customer trust in the business. At the same time, 3PL can also provide customized delivery services, such as scheduled delivery, personalized packaging, etc., to further improve customer satisfaction.
Focus on core business
Outsourcing delivery logistics to a 3PL allows companies to focus on their core business. Enterprises do not need to invest a lot of resources and time in logistics equipment and personnel, and can devote more energy to product development, marketing and other aspects to enhance overall competitiveness.
Shopv has always been committed to providing consumers with efficient and convenient delivery services. Our delivery range is extensive, covering all parts of the world. We provide a variety of delivery methods, including standard delivery, express delivery, etc., to meet the needs of different customers. At the same time, we promise to deliver the goods accurately within the specified time, allowing you to enjoy a worry-free shopping experience.