You might assume that 3PLs (third-party logistics firms) are a solution for a certain type and size of business. Maybe you're imagining an SME with a decent cash flow but limited storage, looking for a way to streamline its operations and reduce costs. 

You might think that multi-million-pound businesses and Fortune 500 companies don't need a 3PL. Surely it's all done in-house?

The truth is that 3PLs are a mainstay of modern supply chains. In 2017, it was reported that 90% of Fortune 500 companies were using 3PLs. According to a study by 3PL Central (now extensive), the global 3PL market share is expected to reach $1,993.72 billion by 2028.

The rising popularity of eCommerce has resulted in a spike in demand for 3PLs – and it's easy to see why. Yes, consumers are expecting faster and cheaper delivery options for their goods. But businesses are also recognising the massive savings they can make by switching to a 3PL and the resulting benefits conferred to their supply chain. 

So what companies are using 3PLs and why? Let's take a look. 

What companies are using 3PLs?

The short answer is, almost everyone! Some major companies prefer to do things in-house, but many don't. 

It's often a case of resources, space and volume of orders. That's why SMEs are more likely to employ third parties to deal with services such as warehousing, supply chain management and order fulfilment. 

So what examples are there of companies – big and small – using a 3PL? Frankly, there are too many to choose from. So let's look at four companies with specific supply chain requirements and how they utilised 3PLs. 

Coca-Cola

Soft beverage giant Coca-Cola is one of the companies using dedicated 3PLs to meet global demand. During the pandemic, the company experienced huge supply network shifts due to imbalances in the market. Consequently, demand for Coca-Cola in supermarkets shot up, while demand for the product in restaurants and hospitality more broadly suddenly shut down.

Fortunately, Coca-Cola was able to harness its 3PL partnerships to rescue its supply chain and get its product moving again. 

Choba Choba

Choba Choba is a Swiss chocolate manufacturer that partnered with a third-party fulfilment network to meet its growth targets. The company was looking to break into key European markets after its domestic success and decided to partner with a 3PL to support its international expansion.

Choba Choba needed a fulfilment provider that would understand the nature of its business and handle its product with care and attention. Its artisanal chocolate would need an accurate and expedient logistics strategy to ensure the product was delivered fresh and on time. 

Flare Audio

Flare Audio is an audio specialist based in West Sussex. It began creating professional audio equipment and then focused its expertise on the home audio market – specifically concentrating on in-ear headphones and earplugs. 

Today, the company ships to 183 countries and has been recognised as a leading manufacturer of professional audio by the likes of Jimmy Page and Jarvis Cocker. But it wasn't all easy.

Flare enlisted the help of a 3PL to manage its logistics in a period of growth and has gone from strength to strength. In an interview, Flare Audio CEO Davies Roberts reflected on the decision:

"We used to do all our picking and packing in-house but as we started to grow, we quickly realised that this isn't our area of expertise and it was becoming too big of a task for us to manage efficiently."

Sealed Air

Sealed Air is a food safety and facility hygiene manufacturer based in North Carolina. Its supply chain and fulfilment logistics were all done in-house, but there was a problem. Issues were arising within its supply chain and parts were not getting to customers without difficulty. 

Its solution was to partner with a 3PL to help smooth over its supply chain woes. Moving its warehousing and inventory management over to a third party diversified its logistics options and strengthened its fulfilment commitments to customers, giving it access to all pending shipments and notification of issues or delays. 

What about SMEs?

For small to medium-sized enterprises, 3PLs are a useful and cost-effective way of managing workload. Taking care of shipping and fulfilment logistics in-house can detract from where you really want to focus your energy – connecting with customers and driving sales.

For that reason, many SMEs on sites like Etsy use 3PLs. It allows them to pour their resources into marketing and promotion and gives them room to scale their business.

Let's take a look at some other reasons why SMEs choose 3PLs.

1. Flexibility

With a trusted and reliable 3PL like Stowsafe, SMEs enjoy flexible picking, packing, kitting and shipping.

Because of the volume and variety of a 3PL's client base, it's equipped with a range of packaging options and carriers that SMEs would otherwise need to spend time and money sourcing. 

2. Tracking

Keeping on top of orders and tracking deliveries can be time-consuming, but with a 3PL, all of your shipping details can be accessed centrally through its dedicated service.

For instance, Stowsafe offers a user-friendly, centralised dashboard, easily integrated into your eCommerce store, so you can stay up to date with all of your orders. 

3. Customer service and expertise

Going it alone can be daunting. Complications can arise in unexpected ways at the most inconvenient of times.

SMEs can benefit from a 3PL's expertise and guidance through those complications, putting them at ease in difficult times. With Stowsafe, you get your own account manager whose job is to support and assist your business with fulfilment issues and inquiries. 

Are you mired in supply chain issues? Do you need extra room to grow but lack the space? Stowsafe is here to help you streamline your operations so you can focus on growth and sales. Find out more about our 3PL fulfilment services or talk to one of our experts today.