In the modern world of e-commerce, quick and efficient at-home delivery is crucial to satisfy customer expectations. However, many retailers are still using outdated distribution models that can be inefficient and unsustainable. One solution to this problem is to use third-party logistics (3PL) services, which can help streamline the shipping process and maximize shipping modes and rates.
Why the Old Shipping Model Doesn’t Work
The traditional shipping model involves suppliers shipping finished products to a regional distribution center run by a logistics company. From there, the company sends large shipments to retail stores, where customers purchase in-store inventory. However, with fewer customers shopping in-store, many retailers use multiple shipping services to get items from suppliers to multiple regional distribution centers, then customers at home. This process can be stressful for a business’s operations team, as they must manually maintain paperwork from multiple shipping services and track LTL and parcel shipments.
Why use a Third-Party Logistics Company?
Many eCommerce and retail companies are using 3PL services to simplify shipping. A 3PL company like Amware can act as the regional distribution center and shipping transportation supplier, eliminating the need for multiple services. For retail storefronts, LTL shipping gets inventory from the supplier to the regional distribution center, where a parcel carrier picks up the item for at-home customer delivery.
Using a 3PL company also offers retailers the option to centralize the regional distribution center via a public warehouse. The 3PL can manage the LTL shipments from the manufacturer to the warehouse and negotiate the best parcel agreements with the parcel carriers on behalf of the client. This helps retailers and customers get the best possible price, as 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.
Amware is a 3PL company located in Cleveland, Ohio, with strategically located warehouses near airports and rail lines. With excellent service and increased efficiency, Amware also offers a proprietary web-based software called Amrate that can increase transparency in 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 operations they need.
3PL services can help retailers streamline their shipping operations, increase efficiency, and save money. By using a single third-party logistics company for all shipping needs, retailers can eliminate the stress of maintaining paperwork from multiple shipping services and tracking multiple shipments. Amware is an excellent option for companies looking to streamline their shipping operations and gain transparency into the process through Amrate.