One of the most common questions we get is seemingly simple: Can a 3PL handle parcel services? In terms of logistics, the answer is “no.” But with the team at Amware, you could save money and make your process easier with a little help. But first, let’s start with the basics.
What Does a 3PL Do?
3PL stands for “third-party logistics,” which is a type of company that provides logistics services for companies who need assistance in their supply chain management. You can expect to find a couple of standard services on a logistics provider’s menu including warehousing products in a safe and secure location, as well as processing, shipment, and delivery of your LTL or FTL shipments.
Some full service 3PL providers can also provide your company with advanced software and technology services that make it easier to run your business. If you have a lot of shipping you need to do, then features like track and trace, bill and auditing, and customized dashboard reports could be useful to your business.
How Can a 3PL Provider Help with Parcel Services?
Most 3PL companies don’t provide parcel services, which can make it difficult for decision makers in small and medium-sized businesses to utilize them. However, there are some 3PL companies that can make it easier for you to negotiate contracts with carriers like FedEx and UPS.
Why would you need a third-party to handle those contracts? Because getting a good deal from your shipping carrier can be tricky, especially if you’re new to the business. But a 3PL company that offers this service would have the industry knowledge and connections necessary to get you the best possible contract for your business needs.
Instead of paying full retail price to ship your custom product, a 3PL could help you negotiate a cheaper price for high volume shipping. Since a shipping carrier can’t see that you will have 100 shipments this month, they may not be willing to negotiate. But if a third-party logistics company gets involved, you may be able to save money and get faster, better service.
How to Choose the Right 3PL For Your Business
Using a 3PL provider can make LTL and freight shipping a breeze. But while you may be growing your business to eventually need higher volume shipping, you may still need a solution for parcel services for where your business is now.
At Amware, we strive to make every part of shipping and logistics as easy for our business partners as possible. That’s why we offer a parcel service for our customers. While we don’t take care of the shipping for you, we do handle the negotiations so you get the best possible price and service available.
Find out how we do it, and get more information, down our ParcelRate guide below!