How eCommerce and Retail are Leveraging 3PL Services

by | Dec 15, 2019 | 3PL

In today’s highly digital space, consumers are looking for quick at-home delivery. Retailers are highly incentivized to make this possible, but many are still using an old distribution model that isn’t efficient or sustainable for their business or their customers.

ecommerce and retail leveraging 3pl


Why the Old Shipping Model Doesn’t Work

Traditionally, suppliers ship finished products to a regional distribution center, which is run by a single logistics company. From there, the company sends large shipments to retail stores, where customers purchase in-store inventory. But what happens to that model when customers are no longer shopping in the store?

Some retailers are using multiple shipping services to get items from suppliers to multiple regional distribution centers, then to customers at home. In this process, many are using multiple shipping services including a LTL shipper to get items to RDCs, then local shippers to get items from stores to customers. There is an easier way that cuts out the middle man and ensures retail and eCommerce businesses are maximizing shipping modes and rates.

How eCommerce and Retailers are Streamlining Shipping

Using multiple services is stressful on a business’s operations team. Maintaining paperwork from multiple shipping services and RDCs while simultaneously (and often manually) tracking LTL and parcel shipments can be taxing on any shipping department. Additionally, with so many shipments to track, a greater margin for human error exists.

Some eCommerce and retail companies are streamlining their shipping operations by using a single third-party logistics company for all of their shipping needs. In this new, simplified mode, a third-party logistics company like Amware acts as both the regional distribution center and shipping transportation supplier. For retail storefronts, LTL shipping gets inventory from the supplier to regional distribution center, where a parcel carrier picks up the item for at-home customer delivery.

Why use a Third-Party Logistics Company?

a 3PL offers retailers the option to centralize the regional distribution center via a public warehouse. The 3PL can also manage the LTL shipments from the manufacturer to the warehouse. Lastly, a 3PL like Amware can help negotiate the best parcel agreements with the parcel carriers on behalf of the client, so the retailer and customer get the best possible price. Local parcel carriers’ rates are negotiable–but without a custom parcel agreement in place, each parcel is priced individually, forcing shippers to pay near retail rates.

Learn More About Streamlining Your Shipping Operation

Amware is a third-party logistics company located in Cleveland, Ohio. Amware’s warehouses are strategically located near the airport and rail lines. Additionally, Cleveland is ideally suited for LTL as over 80% of the U.S. is a day away. In addition to excellent service and increased efficiency, Amware also offers a proprietary web-based software called Amrate that can increase transparency into the shipping process. With LTL shipment tracking and tracing and up-to-the-minute carrier management, retailers and eCommerce companies can gain the transparency and trust in their shipping operation they need.

Learn more about Amware and start your free 30-day trial of Amrate today to see how a 3PL could help save your company money.


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About Brad Mullins

About Brad Mullins

Brad Mullins is the Chief Operating Officer at Amware and is responsible for ensuring the smooth and efficient operation of all Amware's business practices. His effort and expertise in business management and transportation logistics, combined with a focus on positive customer experience, have had a direct and positive impact on Amware's clients, agents, partners, and vendors.