Third-party logistics (or 3PL) refers to outsourcing e-commerce logistical procedures such as inventory management, warehousing, and fulfillment to a third-party company.
Examples are courier, express, and parcel services, ocean carriers, freight forwarders, and transshipment providers.
Although 2PL often works on-call (express parcel services) but 3PL is informed almost every time about the workload of the near future.
If an event of loss, damage, or delay occurs, 3PLs could support their clients by offering excellent customer service and support throughout the claims process.
Customers look for more than just customer service when they work with a 3PL. They need expertise that cannot be replaced by technology and a proactive approach that improves process efficiency and reduces risk.
The lack of clarity concerning conditions in the event of a loss, damage, or delay during the shipping process is one of the most significant hurdles in connecting intermediaries and clients. Carriers and freight forwarders are in charge of handling liabilities and compensation for transportation claims.
This is why 3PL grows and invests knowledge through specialized training programs tailored to their specific needs, mitigate risks, prevent errors, and produce results.

Aspects of claims that are extremely critical

Companies monitor these processes, and their customers can be supported by an expert staff that will help minimize risks, losses, damages, and delays.
If the team continually monitors the case and its progress until the carrier provides the outcome. The final response can be faster than we think, the waiting time can be greatly decreased with effective follow-up.
Also, this is more convenient for the customer to report the concealed damage if it’s in case to the carrier, such as concealed freight damage claims, when damage or shortage is not immediately recognizable. The loss is discovered after the delivery receipt is signed.
Also, the carrier will be able to guess the release rate if valuable information is lacking.
Moreover, a dedicated team from the third party and relevant company will review the documentation and finalize it by ensuring that each item is designated correctly, thus protecting the company from unnecessary risks that may arise from carelessness or negligence.

Cover the shipment with insurance

It’s vital to figure out what kind of insurance a shipment needs to be protected during transportation. A customer should examine the type of cargo being carried, the sort of service required, and the carrier’s liability when determining the type of insurance required.
By adding extra protection on the cargo and checking that the 3PL has a variety of insurances available, such as Auto Liability Insurance and Primary Cargo Insurance, the customer will have the comfort of mind knowing their cargo is protected.
Furthermore, customers have eligibility to find support on quoting and dispatching, assistance with handling problems that may occur at any stage of the shipping and delivery process.
This added value will enhance commercial relationships, establish long-term partnerships, and build trust.

When we need 3PLs

When you want to outsource your logistics but keep control, 3PLs are the way to go. A 3PL can be a suitable option if order fulfilment slows you down and you still have in-house logistics experience.
3PLs are less expensive than other PLs since they provide fewer services. As a result, 3PLs are typically preferable for small enterprises that require logistics assistance.
Keep in mind that working with a third-party logistics provider still necessitates some effort on your part. To get the most out of your 3PL supplier, you’ll still require inside knowledge.

Final Conclusion

A good 3PL will contact you with questions and feedback to help you improve your operations and give better service to your clients. They’re also skilled at troubleshooting and devising novel solutions. To achieve optimal performance, they may re-engineer procedures or implement best practices.
Furthermore, at this time, you should choose a responsible third-party company to assist your valuable customers.
Bit more about our company background, Informatics has gained a prominent position in the global IT sector, providing some of the most cutting-edge software & Infrastructure solutions with a local and international client list that includes sectors such as e-Government, Border Control, telecommunications, Enterprise, banking, and insurance over three decades.
With offices Globally, Informatics offers numerous business solutions across the globe, which primarily cater to increasing the efficiency and operating functionality of any business or organization. Here at Informatics, we have most often surpassed client expectations and have maintained the consistent trend of pioneering and empowering.
Contact us today to learn more about what we can do for you.

Written by Siththy Waseema