Third-party logistics businesses are those that offer the capacity, solutions and resources to help a range of different businesses in managing and executing the logistics involved with shipping, transport, order fulfilment and warehousing.
How Can 3PL Providers Add Value to Your Business?
Third-party logistics companies can handle a wide range of transport logistics as well as freight forwarding so as to make it much easier for you and your business to remain focused on your main objectives. That means you don’t have to worry about transportation or even the distribution of your inventory. Essentially, logistics companies will help in monitoring and managing your warehouse operations, product transportation and order fulfilment.
Not only do 3rd party logistics companies help your business in managing complicated freight requirements, these providers can go a little further by factoring aspects like recurring market trends, limitations, road transport laws and even your business’s unique demands and requirements. Advanced providers tend to offer a way to adapt and achieve your company’s supply chain goals so that you can maximise your profit margins.
The Benefits of 3PL Providers
One of the most important elements that distinguishes dependable logistics providers is that they are aware of the requirements for the delivery of goods. Reputable companies have both the experience and the proficiency in storing and routing products. They also use experienced logistics management experts, IT specialists, engineers as well as supply chain managers who will support yours and their daily operations.
As a result of available expertise and resources, advanced logistics companies combine state-of-the-art software and strategic thinking with logistics resources to get and provide the most value-added supply chain for your business’s freight requirements.
Many Freight Carrier Choose Third-Party Logistics
Freight carriers sometimes rival with each other when catering to third party logistics customers. 3PL businesses tend to work with several carriers, which means they are able to provide a range of services and shipment times. That means that when you work with a 3PL company, you can look forward to more on-time shipments and you may get to save on costs, too.
What’s more, since freight carriers contend for 3PL business, reputable 3PL companies tend to have higher power and control in bargaining compared to a lone shipper. This means you can have access to better rates, time allocations, booking options, and reduced per-diem and demurrage rates.
Hiring a Company Is More Affordable Than Doing Supply Chain Management In-House
If you do all your logistics and shipping in-house, you may encounter dramatic savings when you contract a 3PL company. These companies cater to your entire supply chain from start to finish, saving your business valuable resources and time.
Since 3PL’s are larger with great trading power, they are able to broker freight for much less than you would likely attain on your own. This can save your operations time and money, leaving your staff to concentrate on the bigger strategies and goals of the business.
Finally, 3PL businesses offer greater control through experienced vendor relationship management. They are pro-active in communicating with suppliers around the globe, too, so that everything goes as it should. You’ll get performance reports along the way, too, to ensure you are saving and where.