3PL Sydney service

Logistics is a very important part of any business, it doesn’t matter if you have a typical brick and mortar store, or you operate solely online, you are going to need to have a proper logistics plan in place to ensure your business runs smoothly.

There are a lot of different levels of logistics and you will probably find that as you grow, your level of need for logistics will change. It is all about inventory management, and the bigger your business gets, the more difficult it becomes to do it all yourself which is why you may need the assistance of another business like a 3pl Sydney provider that specialises in this area to assist you.

There are four different levels and stages of logistics that your business is likely to experience over time. Businesses usually tend to start at First Party Logistics (1PL) and make the way up to Forth Party Logistics (4PL) if the business becomes big enough.

 

First Party Logistics (1PL)

Majority of retailers start at this level of logistics and this just means that you manage all your own supply chain tasks like tracking your inventory, completing orders and ordering the needed material. You act as the one and only person doing the logistics, which is why it is called 1PL.

The reason most businesses start out here is that there simply is not enough resources or cash to outsource the logistical part of your business yet. Hopefully, as your business starts to make more money and becomes successful, you will then have enough resources to move up to one of the next levels or stages in logistics.

 

Second Party Logistics (2PL)

This is where a business will use another business to transport the goods and deliver them to the customer. So, for example, if you run a restaurant that is available for takeaway on Uber Eats, and Uber Eats delivers the food to the customer, then that is your business making use of 2PL.

2PL is becoming a lot more popular these days as online shopping opens up more and more. Sometimes you simply cannot fulfill the customers order completely by yourself, especially if you are operating an international business. This is why 2PL is important, you may do a lot of the other logistics stuff yourself, but you need another business to physically deliver the goods.

 

Third Party Logistics (3PL)

logistics

This is where your business will use a third party to store any of your products and fulfill orders as needed. There are many 3PL in Sydney and right around Australia and even the world that specialise in this area, so if you feel as though you are unable to keep up with the demand of your products, then this is probably going to be a good option for you.

A 3PL in Sydney can take care of a lot of different things for you, which will make your life a whole lot easier and help you run your business more efficiently. It also means that you do not have to fork out major cash to purchase things like a bigger warehouse, as this is something that the 3PL should take care of.

 

Forth Party Logistics (4PL)

This is the next step up and usually involves a 4PL handling all your different 3PLs, which is obviously only going to be useful for those businesses that are particularly large and complex.

 

A 4PL will be able to handle your entire supply chain and take pretty much all the logistic work off your hands. They are able to go that one step further then a typical 3PL and they are able to provide an end-to-end solution for your business.

 

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