6 Major Benefits of Third-Party Logistics
Tuesday August 03, 2021
To ensure the entire supply chain process flows seamlessly and efficiently, all the parties involved must coordinate. Third-party logistics are services that allow your business to fill in operational gaps and provide high-quality transportation services to their clients. By partnering with 3PL companies with vast knowledge and experience in the logistics industry, you’ll be able to ensure high quality, reliability, and promptness.
What do third-party logistics or 3PL companies do?
As companies expand and clients become more demanding, in-house operations become inefficient and costly. Here’s where the need for additional help begins. Companies start searching for third-party logistics companies to take on some aspects of the process and ensure safe and on-time delivery.
Third-party logistics companies take care of a wide variety of processes within the supply chain, and these are just a few:
- Transportation and delivery
- Specialized haul
- Packaging and customer packaging
- Order fulfillment
- Freight forwarding
- Customs brokerage
Major benefits of third-party logistics
These are some of the essential benefits you’ll have access to when working with a third-party provider:
1. Cost Savings
Expanding your workforce, material, systems, and other essential aspects may become costly in a growing business. Incurring on infrastructural investments can set back your budget. By partnering with a 3PL, you’ll be able to leverage their spaces, staff, and technology, which will reduce your costs significantly.
Additionally, by outsourcing segments of the process to these companies, you’ll gain access to their networks and business relationships. Their established networks allow them to have exclusive benefits and discounts.
2. Knowledge and experience
Usually, 3PL companies have many years within the industry which has helped them understand what works and best practices during the entire supply chain process. 3PL’s provide various services, allowing them to be specialized on documentation, compliance, regulations, as well as other more complex transportation services like international transportation.
Their focus is filling those operational gaps your business may have, meaning that they’ll have the know-how you may be lacking and will add value to your processes.
Companies are not all the same, and each one has its own needs and challenges. One of the good things about working with third-party companies is that you’ll be able to start small and expand as you see fit. When sales decrease, you won’t be left with an overflow of equipment, staff, and other resources; but when the demand increases, you’ll be able to use your third-party partnership and leverage their infrastructure, always meeting the needs of your clients.
4. Focus on business growth
Having a team of qualified individuals taking care of essential parts of your process allows you to gain some time and focus on activities that drive business growth. You and your team will have the opportunity to think about strategies that will enhance your processes to provide better services and increase your client base.
It’s an opportunity to reflect upon new and revolutionary ideas or even think about expanding your services. In any case, time to think and reflect is a luxury not many people within the industry get.
5. Staying updated with the industry
Creating a great work relationship with 3PL’s will also allow you to expand your knowledge on specific areas of the industry, as they will be providing services, you’re not particularly familiar with. They will help you understand the nuances of each particular area of transportation you’re interested in, allowing you to stay up to date with the latest trends and best practices. It becomes a learning experience for all the parties involved.
6. Customer loyalty
Accessing third-party logistics services with experienced companies will help you provide the best possible services for your clients, delivering their shipment without issues and on time. Having satisfied clients increases the chances of them working with you again as well as good recommendations.
Finding the right partner to take care of crucial parts of your business requires some time since you must consider their knowledge and experience within the industry. But once you find a 3PL you can trust, you’ll be able to see results fast and focus on what can help your business thrive.
At Logistics Group International, our clients are our primary goal, and we strive to provide the best services possible in an industry we’ve been part of for over 30 years. To know more about how you can leverage our expertise, check out our website and contact our fantastic team to get started.Back to All Posts