Ecommerce companies of all sizes – from small start-ups to Fortune 500 enterprises – rely on third-party logistics (3PL)
providers to handle their inventory management and order fulfillment. These 3PL partners are supposed to help companies navigate today’s business landscape, boost their efficiency and on-time delivery performance, and streamline their supply chain operations – but, in many cases, they don’t.
Indeed, many ecommerce players find that working with 3PLs – instead of eliminating their logistics headaches – can actually lead to increased supply chain complexity and costs. One of the primary reasons for this phenomenon is that companies engage numerous 3PL providers at the same time, and this can create issues – particularly when it comes to inventory management.
When you outsource your inventory storage and distribution to multiple 3PLs, you have to manage multiple inventory pools across multiple sales channels – and this can become a major source of irritation and inefficiency for your organization.
That’s why many companies are realizing that – when it comes to inventory management – it can be advantageous to “put all your eggs in one basket” by pooling your inventory with one 3PL provider and letting them handle all your warehousing and distribution operations across all your sales channels.
In this blog, we will highlight the three key benefits of consolidating your inventory with a single 3PL provider.