logistics

Why Companies are Turning to 3PL’s

Third-party logistics providers are an excellent resource and an integral part of the ultimate success of your growing business. A third-party logistics provider, also known as a 3PL, acts as your logistics partner to manage the process of warehousing and shipping product on your behalf. 3PL’s can help you to streamline your supply chain, meet your customer’s delivery expectations, and enhance your organization's financial performance.

Whether your business is big or small, partnering up with a 3PL provider can offer many management solutions for all types and sizes of companies. When many companies examine their current logistics needs, they will often find that utilizing a third-party provider will reduce their expenses and result in better customer service.

Here are some of the key benefits of using a third-party logistics provider:

Saving you Time and Money
It is a huge timesaver and a very smart financial move when you hire a 3PL to manage your product distribution. 3PL’s often offer volume discounts on shipping and shared warehousing facilities, which matters to your bottom line. Using a 3PL provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. You no longer need to worry about the hassle of paperwork, billing, audits, training, and staffing involved to get your goods where they need to go. Instead, your company managers and employees can focus on growing your core business and market share.

You Gain Access to the 3PL’s Huge Network of Resources
The ability of your 3PL provider to leverage relationships and volume discounts can result in the fastest service possible and the lowest overhead. For example, a 3PL has connections in warehouse spaces, allowing you to store your products until shipment for a reduced rate. 3PLs also have access to many freight companies and can negotiate on your behalf preferred shipping rates. They have connections in the industry that are reliable and critical to the success of the supply chain, and they will be available at your disposal. In short, 3PLs leverage the collective spending of their clients, increasing the buying power of an individual shipper.

Your Relationship with your 3PL Becomes a Partnership
When you hire a good 3PL provider, they become your partner and ally. They will look out for your best interests and ensure that your relationship is mutually beneficial. Further, 3PL companies are always finding ways to become more efficient, more streamlined and optimized. Ultimately, a great 3PL is ensuring that any inefficiencies or wasted resources along your supply chain are eliminated. They will help you save on expenses, provide you with excellent customer service, and give you the flexibility to run your business well. They also work well for those irregular businesses that are seasonally or market driven and that require different demands to be successful.

Overall, hiring a 3PL company to manage and streamline your supply chain organization is an excellent decision. To keep up with the demands of the industry, they will help you save money, build relationships and access resources that you might not usually have available. By partnering with a 3PL provider, you get a knowledgeable partner that helps streamline your supply chain, improve customer satisfaction, and increase your profits.

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