The Top 6 Reasons Why Your Business Needs a 3PL

If you are a manufacturer, e-commerce entrepreneur, drop shipper, or Amazon FBA seller in Australia then a 3pl partner can take away all of your logistics and fulfilment worries. A third-party logistics (3PL) provider like CSG3PL offers a broad range of such services for these businesses. Here, we will cover 6 major reasons to hire a 3pl.

1. Efficient Supply chain

3PL providers have a solid inbound, outbound, and reverse logistics network. They can take away all your logistics worries and streamline the entire supply chain.

In the case of manufacturing companies, it covers supply chain operations from bringing in the raw material to storing the finished product in the 3pl warehouse. This can even go further to delivering the product to the end customer.

For E-commerce and retail entrepreneurs, 3pl services start from carrying their products to the 3pl warehouse. Then they pick and pack the products, then when required, they will also deliver to the end customer through their network and will even go as far to manage & handle all returns.

2. Complete Inventory management

If the company decides to do the inventory management itself then the storage and the handling of inventory need big infrastructure investment. Further, regular heavy expenses will be required for store administration, maintenance, packing and shipping arrangements.

Hiring the services of a 3pl can take away all these headaches with their advanced warehouse management solutions and you can focus on the real business. They will keep your inventory safe with their latest technological infrastructure, and professional expertise. Further, they provide online inventory tracking and stock updation facilities, so that you always have control of the situation. Just hand over the inventory to them and be carefree.

3. Automated Order fulfilment

In the case of E-commerce & dropshipping companies, when an order is placed on their website, it is forwarded to the 3pl facility automatically. This triggers the order fulfilment process at their warehouse. The pickers gather goods from the warehouse as per the packing list and pack them into appropriate boxes or bags. After that, the item is labelled and shipped to the end customer with appropriate documentation.

Similar is the case of stock fulfilment at the retail outlets. Whenever the stock quantities fall below the minimum levels entered by the company in the software, the requirements are sent by the software and it is immediately fulfilled, after packing and labelling, to the retail outlets.

4. Returns management

3Pl takes responsibility for the goods returns management also. Returns management is one of the most important aspects of any business. A clear return policy develops confidence in the customers to buy from your company or e-store.

However, the returns or exchange process is a very time-consuming and demanding process as you have to deal with an angry customer but at the same time, you have to keep the company’s benefit also in your mind. Here also, 3pl comes to your rescue and keeps you free of all such tasks.

Their highly trained customer care team will deal with the customer. In the case of return or exchange, 3pl staff will inspect the returned merchandise, process the refunds, or ship out a new item as required. Then the returned items are given the final treatment, maybe restocking, discarding, sending back to the manufacturer, or recycling.

5. Time and cost saving

When compared to manufacturers, e-commerce companies or other entrepreneurs, 3PLs manage logistics and warehouse operations in bulk. Further, they have a large infrastructure and expertise in this particular field. They remain in regular contact with a lot of shipping, logistics and related companies and are aware of the bulk deals and discounts. So they can always save your time and cost by getting better deals from other concerned parties.

Similarly, 3pl saves a lot of time by picking, packing, and shipping the orders. Otherwise, the company would always remain busy with the sorting and packing activities.

Further, when e-commerce companies deal with reverse logistics themselves, they sometimes even have to leave the product with the customer because of high shipping charges in comparison to the value of goods. While in the case of 3pls, they easily manage the situation because of their regular routes, tie-ups and bulk operations. So, good reverse logistics can even reduce costs.

6. Scalability

If entrepreneurs handle the inventory and/or logistics themselves, then while planning the scaling-up of activities, they always have their fingers crossed. The reason is the high investments needed in the infrastructure and related maintenance costs to run the business at that level. The possibility of failure always haunts them.

On the other hand, while dealing with 3pls, the company can easily scale up or scale down the business as per the company’s policy, or seasonal and market demands. With a 3pl as a partner, they need not think about these aspects.


So, if you are a manufacturer, e-commerce entrepreneur, dropshipper, or Amazon FBA seller in Australia then you have all valid reasons to go ahead with a 3pl partner like Melbourne-based CSG3PL. Their efficient warehousing management and product delivery, lower costs, and high customer satisfaction lead to a successful business in the long run.

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What Is a 3PL?

A Third-Party Logistics (3PL) provider is a company that offers outsourced logistics and supply chain management services. They handle various aspects of the supply chain, including transportation, warehousing, inventory management, and more.

Why Should My Business Consider Using a 3PL?

Businesses should consider 3PL services to streamline their supply chain, reduce costs, improve efficiency, and focus on their core competencies. A 3PL can offer specialised expertise and resources

What Type Of Businesses Can Benefit From 3PL Services?

3PL services can benefit businesses of all sizes and across various industries. From e-commerce and retail to manufacturing and healthcare, 3PLs offer customised solutions.

How Can a 3PL Reduce Logistics Costs?

3PLs can reduce logistics costs through efficient inventory management, optimised transportation routes, and leveraging their network to negotiate better rates with carriers.

Are There Any Potential Drawbacks To Using a 3PL?

While 3PLs offer many benefits, it’s essential to choose a reputable provider. The potential drawbacks could include a loss of control over certain logistics processes. However, a good 3PL should be a strategic partner that enhances your supply chain.

How Do I Know If My Business Is Ready For 3PL Services?

Signs that your business is ready for 3PL services include growth that strains your logistics capacity, seasonal fluctuations, the desire to expand into new markets, or when you want to focus on your core business activities.