Let’s say you have a small but growing e-commerce business that started at home. Orders are rolling in and suddenly there is no room for your car in the garage because it’s full of cardboard boxes and packing tape. It may be time to update your in-house approach and explore a third-party logistics (3PL) partner. But how do you integrate with a monolithic third-party warehouse while retaining the business intelligence that your company needs? Let’s review how to successfully complete a digital transformation with an external logistics provider and why you should do it.
A 3PL is a company that offers warehousing and shipping services for your products thus allowing you to focus on other business decisions. While you are handling marketing and sales, the 3PL is warehousing, picking, packing and shipping your orders. Sounds like a great deal, right? Maybe you feel like you can kick-back with a cocktail while someone else does the heavy lifting. In reality, you should be paying close attention because you’re surrendering an important part of your business to a third-party and you’re also losing direct access to your business data.