Avoid This Hidden Cost, and Save Up Big in Global Shipping Logistics!
3PLs (third-party logistics) are companies that provide logistics services for manufacturers, retailers, and industries to streamline their supply chains. Logistics encompasses a wide array of services and operations, such as storage (warehousing), picking, packing, and shipping of products. Businesses that need to deliver their products to the customers outsource their operational logistics to a 3PL that oversees every stage, from pickup and storage to safe and on-time delivery of the products. One of the key services of 3PLs is order fulfillment. 3PLs are one of the essential elements of global shipping logistics.
Outsourcing your operational logistics to a third-party logistics company charges you different fees and costs. Most 3PLs have a complex fee structure, so you must check every fee and cost before signing the agreement. A typical third-party logistics company can charge you the following fees:
- Set-up fee
- Inbound shipping and receiving charges
- Warehousing fee – to store and manage your inventory
- Pick and packaging fee
- Labeling fee
- Fulfillment fee
- Shipping cost – to transport your products to the delivery destination
But when it comes to the global shipping logistics, there could be even more hidden charge that may lead to extra cost.
What Hidden Cost May Occur During Global Shipping Logistics?
Most fees that a third-party logistics company charges from you are listed in the fee structure. However, some hidden charges are not included in the fee structure, but you have to pay them to the logistics company. These charges could significantly increase the overall cost of your logistics operations.
One of these hidden charges is the labor cost. It's a fee that the logistics company can charge you based on an hourly rate per number of laborers to handle your products. Labor cost is a way for conventional logistics companies to charge clients more. You may need to pay the logistics company for the labor cost during:
- Daily operations in the fulfillment processes
Conventional logistics companies charge their clients in terms of labor costs incurred from daily operations in the fulfillment processes of global shipping logistics. For example, the company uses a human workforce to pick, store, load, transport, and unload your products and charges you based on the strength of the workforce. The more employees the company uses to manage the daily operations of your order fulfillment, the more you may have to pay.
- Manual inspection of warehousing
Most conventional logistics companies hire specialists for manual inspection of warehousing. The clients bear the expenses of this hiring and pay the logistics company. Warehousing specialists conduct a series of activities designed to inspect the inventory storage and management conditions at the warehouse. After the inspection, they give their recommendation to the logistics company and the client.
- Manual data exchange and information transfer
If you partner with a conventional logistics company for your supply chain management, the cost of manual data exchange and information transfer – such as email documentation or telephonic communication – during your logistics operations is paid by you. For example, the agents of the logistics company make calls to the carriers, drivers, or warehouse managers for the pickup, storage, and shipping of products. In that case, the telephone bills are at your own expense, which would be higher for the case of global shipping logistics.
Words in the End
This is how conventional 3PLs make you pay hidden charges in terms of labor costs. The good thing is, you can avoid this hidden cost and save up big in global shipping logistics by partnering with a trusted third party fulfillment company, with all its quotation transparent and clear.
As one of the best logistics fulfillment providers with seamless, real-time, data-driven OMS (order management system), Yunfulfillment Warehouse offer you professional services with simple fee structure without any hidden fees. By partnering with this industry-leading fulfillment solution, you won’t have to pay any hidden costs and save up big for logistics and shipping, as we are your go-to third-party fulfillment choice if you want to save more on your global shipping logistics without compromising the quality and efficiency of your logistics operations.
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