Understanding E-commerce Fulfilment Services

Logistics play a key role in our daily lives but often remain the silent partners in our business endeavours. Delivering essentials amid pandemic tested the supply chains of the said logistics. Nevertheless, E-commerce Fulfilment Services remain an integral part of businesses and how effectively they can reach their counterparts & customers. Being a critical service for E-commerce, businesses need to understand which Logistics service they must choose.  

Despite the multi-level role that logistics play in a massive chain network, it is often overlooked. To simplify, Logistics is the main organisation that carries out the numerous tasks of warehousing, storage, delivery, & shipment related to a business. So whenever a person buys from e-commerce, the delivery & shipment part is handled by the logistics partner until the product reaches your doorstep. 

Without logistics, the concept of e-commerce could have never been implemented in the world economy. Today, we witness a steep rise in E-commerce businesses, which implores us to understand that the need for logistics partners is imminent and required. This blog talks about the various types of logistics available & how they can be differentiated based on the type of business you run. 

Different Types of Logistics

Because of a constantly evolving market, the e-commerce fulfilment providers have to be a part of the change and accept the complex requirements set by businesses. New levels are increasingly created to deal with business problems in the most efficient way. Currently, there are ten types of logistics available, from 1PL to 10PL; however, 3PL, 4PL, and 5PL remain the most commonly used. 

Services offered by Logistics Companies

To combat E-commerce Fulfilment issues, a third-party logistics company provides all logistics operations in a business. They are well-equipped in warehousing solutions, be it for cold storage or stocking up hazardous material for a company. The best E-commerce Fulfilment Service Providers are technologically advanced and work on software that streamlines their deliverables. An influential Logistics partner is well-versed in warehousing, technology, and supply chain management. 

Let’s look at the plethora of services provided by 1PL, 2PL, 3PL, and 4PL levels of logistics and how they differ from each other. 

Services offered by 1PL Provider

The 1st Party Logistics of 1PL refers to a firm capable of handling its warehousing, cargo, and shipping requirements on its own. Since it does not involve any middlemen, the process entirely depends on two mutually benefiting parties- the supplier and the buyer. However, only a few companies rely on such providers these days because of the scale of their business. Through outsourcing, they improve on flexibility with 3PL providers. 

Services offered by 2PL Provider

Involving only the moving/ transportation of the goods, 2nd Party Logistics handle the supply chain for a business. The E-commerce Fulfilment Provider transports the goods from a specific hub or a port using their shipping & trucking solutions or leasing them. This type of logistics is solely used for trading, imports, and exports of wholesale products. 

Services offered by 3PL Provider

A Third Party Logistics is a supply chain that works on shipment, delivery, and additional warehousing for a business. Along with this, 3PL E-commerce Fulfilment also leases its warehouse space, aids in terminal operations, customs, Technology, tracking & delivering the products, and managing the services effectively. They have major expertise in dealing with domestic deliveries and offshore warehousing, which is a huge brownie point for them. Due to their capability to multi-task, 3PL Logistics Providers are a popular choice of small & larger businesses today. 

Services offered by 4PL Provider

Emerging as a new concept in E-commerce Fulfilment Services, these logistics are often termed Lead Logistics Providers and have expertise in managing the supply chains. In this arrangement, the business does not possess any physical assets for shipment & delivery. Rather they act as a consulting company and contract 3PLs to deliver the necessary support whilst providing the businesses with a single invoice; hence, simplifying business & streamlining logistics. 

Conclusion

If you’re a business owner, the onus of selecting a perfect ECommerce Fulfilment Service Provider lies on you. In reality, running a successful business involves grit, passion, and a lot of research & planning. Considering the support you require in handling deliverables, you can seek out the best eCommerce Fulfilment service provider that works in sync with your plans. If you’re looking for a 3PL Ecommerce Fulfilment UK service provider, Contact us to get a quote for your business and kickstart your journey to connect people worldwide.