Maximizing Benefits of Working with a US 3PL as an International Seller

Virginia Miller

August 27, 2024

In this article:

In today's global marketplace, international sellers are faced with a myriad of challenges when it comes to managing their supply chain. One effective solution that has gained traction in recent years is partnering with a US-based Third-Party Logistics (3PL) provider. By leveraging the expertise, resources, and technology offered by a 3PL, international sellers can maximize their benefits and streamline their operations for greater success.

The Vital Role of a 3PL for Streamlining International Trade

Third-party logistics (3PL) providers are invaluable partners for companies engaged in international trade. As experts in supply chain management, 3PLs manage critical functions like warehousing, inventory control, order processing, and shipping to keep goods flowing efficiently across borders.

Key Functions of a 3PL

From raw material sourcing to last-mile delivery, 3PLs coordinate the end-to-end supply chain on behalf of their clients. Core functions include:

Warehouse management - 3PLs handle warehouse operations and inventory control using WMS technologies to prevent stockouts.
Vendor management - 3PLs coordinate with suppliers and factories to ensure timely replenishment of goods.
Order processing and fulfillment - 3PLs receive and process orders, pick/pack products, and arrange shipping.
Transportation management - 3PLs optimize shipping routes and consolidate loads to reduce freight costs.
Customs brokerage - 3PLs have expertise in trade regulations and documentation to expedite customs clearance.

Benefits of a US-Based 3PL for International Sellers

For companies selling globally, partnering with a US-based 3PL provides unique advantages:

Cost savings from optimized shipping routes and consolidated freight rates
Faster customs clearance and reduced border delays by working with domestic transporters
Enhanced supply chain visibility and inventory control by implementing American WMS and TMS technologies
Better coordination with US-based vendors, suppliers, and fulfillment centers

Overcoming Cross-Border Commerce Challenges

While 3PLs streamline global operations, international sellers still face complexities like:

Language and Cultural Barriers

3PLs with multilingual staff and international experience can liaise effectively across languages and cultures to support global clients.

Compliance Management

3PLs stay current on each country’s unique trade rules, product regulations, labeling laws, and documentation requirements to ensure compliance.

Duties and Taxes

3PLs advise on duty minimization programs, taxes, and customs valuations to reduce landed costs and prevent penalty fines.

Maximizing the 3PL Partnership

Follow these tips to drive value from a 3PL engagement:

Share sales forecasts and inventory goals so the 3PL can plan accordingly
Utilize the 3PL’s TMS and WMS for supply chain visibility from factory to customer
Meet regularly to discuss achievements, opportunities, and strategies for optimization

With their expertise and global perspective, a top-tier 3PL empowers companies to expand internationally, drive efficiency, and deliver outstanding customer experiences worldwide.

Frequently Asked Questions

What is a third party logistics (3PL) provider?

A 3PL is a supply chain specialist that manages warehousing, fulfillment, shipping, and freight on behalf of businesses. This enables companies to focus on sales, marketing and product development.

How do 3PLs help with global ecommerce?

3PLs have the knowledge and infrastructure to store inventory around the world, process global online orders, optimize cross-border shipping, and navigate customs regulations in each country you sell to.

What supply chain services can a 3PL provide?

Key services include warehouse management, B2C/B2B order fulfillment, inbound and outbound transportation, customs brokerage, trade compliance consulting, supply chain visibility and inventory optimization.

Why should ecommerce retailers use a US-based 3PL?

A US 3PL helps consolidate US-bound imports before distribution to American fulfillment centers and end customers. This saves significant time and costs over direct overseas shipping.

What technologies can improve a 3PL partnership?

Real-time inventory and order management systems, shipment tracking portals, EDI integration for orders/inventory data exchange, and workflow automation between retailers and 3PLs.

How can I evaluate and select the right 3PL?

Assess 3PLs based on services offered, international scope, technology capabilities, ecommerce expertise, stability, culture fit and customer references.

What questions should I ask prospective 3PLs?

Key questions include services supported, countries shipped to, IT integration options, contract terms/pricing models, KPI reporting, and opportunities for optimization.