What is 3PL Warehousing, and how can it help your business?
Third Party logistics (abbreviated as 3PL or TPL) in logistics and supply chain management, is an organisation’s use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services.
Third party logistics (3PL) providers typically specialise in integrated operations of warehousing and transportation services that can be scaled and customised to suit customers’ needs, based on market conditions, to meet the demands and delivery service requirements for their products. This allows the customer to scale up or down stock holdings and achieve immediate cost benefits where applicable.
The 3pl Warehouse Advantage
The advantage of using a third party logistics (3PL) provider is that you, as a customer, are then able to allocate your resources to managing and growing your business and leave the daily fulfillment of orders to your nominated third party logistics provider. The 3PL warehouse will use their expertise in managing and expediting the fulfillment of your orders.
A major advantage of using a 3PL provider is the ability to fully manage your input costs. All elements of the distribution process can be quantified and costs pre-determined. These costs can be broken down to a carton rate or even an item rate. With all your logistics costs quantifiable, it allows you the ability to manage the important part of your business. In summary, this means that you will only pay for the services required and you do not need to carry costly overheads.
By choosing a 3PL for your logistics needs, reduced expenditure can be achieved in warehouse floor space, excess stock on-hand, plant and equipment costs, staff overheads and other large fixed overheads. In other words, by using a 3PL reduced costs can be achieved through economies of scale as your costs are directly apportioned to your sales.
MTS 3PL Warehousing Brisbane
MTS Warehousing and Distribution is an experienced 3PL Brisbane warehouse operator, and provides third party warehousing and pick and pack services in Australia. MTS was founded in 1993 and remains a leading Brisbane 3pl warehouse.
Our 3pl brisbane warehouse is located in the heart of Salisbury Queensland, and in close proximity to the Brisbane CBD. MTS utilises a network of carriers, both bulk carriers and courier companies, to ensure that your product can be distributed throughout Australia at a competitive market rate.
Australia 3PL Companies – The 7 Rs in Logistics
Logistics is the management of the flow of things between the point of origin and the point of consumption to meet the requirements of customers or corporations.
The Chartered Institute of Logistics & Transport in the UK defines the 7 R’s in logistics to achieve the correct logistical outcome as being:
The 7 R’s in logistics
1. getting the Right product
2. in the Right quantity
3. in the Right condition
4. at the Right place
5. at the Right time
6. to the Right customer
7. at the Right price
While this definition seems simple, think about the synchronised processes that need to take place within the third party warehouse in order for all the criteria such as timeliness, condition of goods, price and accuracy to be maintained.
MTS’ Brisbane logistics can help you to achieve the 7 R’s within your supply chain.
Too often clients are lost in larger organisations, affecting the service goals desired by using a 3PL and ultimately losing the ability to remain competitive by outsourcing.
MTS focuses on a strong level of service for all clients, regardless of size or turnover. We’re ready to adapt to different levels of expectations and handling requirements to ensure our clients succeed in the marketplace.
To discuss a 3PL warehousing solution for your business, contact the MTS bulk storage Brisbane location.
“Your success determines our success.”