6 benefits of using 3PL for last-mile delivery

6 benefits of using 3PL for last-mile delivery

Here's a deeper look at the benefits that can come from partnering with a 3PL provider for last-mile delivery.

1. Improved route optimization

Unforeseen obstacles, such as traffic jams or road construction detours, can delay last-mile delivery drivers. 3PL providers often use route optimization technology, such as software that can track traffic events in real time and algorithms that can automatically reroute vehicles to the shortest path.

3PL providers' technologies and logistics expertise can help improve last-mile delivery efficiency.

2. More cost-effective shipping

The overhead costs of product storage, distribution, transportation and logistics can quickly add up, and managing these tasks also takes time for employees.

3PL providers likely already have warehouses in place for inventory management, as well as distribution centers that are located in delivery hubs. In addition, their employees are dedicated to focusing on managing logistical minutiae.

3. More flexible delivery options

According to a 2024 McKinsey survey, U.S. consumers place a significant amount of importance on flexible delivery options, with more than 50% of respondents valuing the ability to schedule deliveries.

3PL providers can often offer a range of last-mile delivery options, from standard shipping speeds of three to five days to two-day delivery and, sometimes, same-day delivery. This flexibility enables customers to select the option that best works for them.

4. Improved visibility into delivery status

Customers have also come to expect increased visibility into their package location and its expected delivery timing.

3PL providers often use real-time tracking and monitoring systems to provide this visibility to customers. Drivers and warehouse workers can scan a package label to automatically upload data to the main tracking system, which then updates the customer's tracking information so the customer knows where their package is.

Some 3PL last-mile delivery providers use tracking sensors in vehicles, which enable customers to see a delivery vehicle's distance from their location. These technologies can help provide more accurate information about deliveries throughout the delivery journey.

5. Improved customer satisfaction

Customers value being able to quickly look up their delivery's status and estimated arrival time.

3PL providers help ensure that deliveries arrive on time, which reduces customer complaints, and can provide tracking information to customers. A 3PL provider can use a push notification system to send delivery updates to customers via their mobile devices.

6. Easily scalable operations

Delivery needs often change based on demand. For example, some organizations may ship the majority of their orders during a single season, while others experience a steadier demand for their products year-round.

3PL providers have experience with scaling up their operations if needed and properly allocating resources. 3PL providers also use technologies like predictive analytics to track likely spikes in demand.

Jacob Roundy is a freelance writer and editor specializing in a variety of technology topics, including data centers and sustainability.