The role of third-party logistics in the UK market

third party logistics

Third-party logistics companies play a vital role in the UK’s supply chain. Also known as 3PL or fulfilment providers, they manage the supply chain and logistic operations of external businesses.

By outsourcing fulfilment operations, customers of third-party logistics companies typically save on investing in warehouse space, transportation, logistics labourers, distribution sites, retail outlets, ecommerce platforms and logistics management software.

What services do third-party logistics companies UK provide?

The level of support entirely depends on the client’s requirement, but the most popular 3PL services include:

  • Procurement: Ordering and receiving goods from elsewhere in the supply chain.
  • Order fulfilment: Receiving orders from customers, picking and packing and arranging for the orders to be completed and sent out.
  • Storage: Providing temporary storage for goods in warehouses and similar locations.
  • Transportation: Arranging for the consolidation, deconsolidation, management and transportation of goods.

By outsourcing supply chain and logistics operations, businesses can invest more time in the key areas that generate the most revenue.

What do third-party logistics companies UK need to manage a customer’s supply chain?

As third-party logistics companies are responsible for managing such significant operations for their customers, they require optimal visibility on their client’s supply chain data.

Data sharing between third-party logistics companies and their customers is vital to eliminate the risk of errors and ensure maximum efficiency. To stream

What are the advantages of using third-party logistics companies UK?

While a company may be a specialist in a particular industry and have unrivalled expertise on the product or service they sell as well as an excellent relationship with their customers, managing the logistics of the supply chain is a completely different specialism.

Third-party logistics companies are supply chain experts and stay up to date on the best industry practices and developments. Their role is to enable businesses to ensure sustainable growth in terms of profitability and customer base, without the expense of physically growing or relocating.

As the UK is a major global exporter, third-party logistics companies provide a crucial service. Through the support of a third-party logistics company, your business can cater for a global market without having to send resources abroad. A 3PL provider manages shipping, travel, customs and compliance, ensuring your goods can get to anywhere in the world.

How has COVID and the ecommerce boom impacted 3PL providers?

In Signifyd’s State of Commerce Report 2021 released in March 2021, it was reported by the end of 2020, eCommerce in the UK accounted for nearly 35% of total retail revenue, bearing in mind the first lockdown was not enforced until late March. Also, nearly 57% of the UK consumers surveyed by Signifyd in September said they would do more shopping online even post-pandemic.

Although in the same report it was found that 15.6% of businesses in the UK closed physical stores, 8.8% launched eCommerce with a further 30% expanding their existing eCommerce.

While restrictions have not decreased consumer demand, with the ongoing COVID crisis and post-Brexit legislative changes, this is putting extensive strain on the UK logistics industry, and the need for accuracy and efficiency in operations has never been so severe.

What is third-party logistics software?

OrderWise provides an end-to-end, fully integrated software solution that enhances the operations of third-party logistics companies to ensure they provide the best possible service to their customers.

OrderWise 3PL software is shaped to third-party logistics companies, whether they specialise in warehousing, packaging or distribution. OrderWise also has the functionality to integrate with your courier platforms and provide optimal traceability on order fulfilment.

Additional OrderWise third-party logistics software functionality includes solutions billing, eCommerce integration, accounts, returns, mobile WMS for android, BI reporting, EDI and stock control.

As an all-in-one solution, third-party logistics companies have total visibility on all business data in real-time, from anywhere, all from one centralised solution. Data accessibility and management is streamlined by Orderwise’s third-party logistics portal which allows 3PL businesses and their customers to seamlessly share data back and forth.