A third party logistics company—also known as 3PL—is a firm that offers complete services for all your supply chain management needs. Most companies work with a 3PL instead of forming their own logistics division. Here are seven reasons why you should, too:
1.Efficiency – Aside from not needing to hire and train your own logistics team, a third party logistics company can also eliminate the need for you to invest in transportation, technology, and warehouse space for logistics processes. Your company will save a lot of time, too, as they can cover all of the paperwork, optimization, staffing, training, audits, and billing.
2.Resource network – A third party logistics company has a large and diverse network to provide in-house supply chains. Each process in the supply chain can be done in the fastest and most efficient way possible because a third party logistics company has already built relationships with other resource companies and can garner volume discounts.
3.Experts – Your own logistics division will only be as young as your own company (maybe even younger). You simply don’t have the experience necessary do a good job in the high-stress world of transport, shipping, and storage. Third party logistics companies have been in the industry for many years, so they have ‘been there and done that.’ Successful logistics companies need a lot of experience to be able to effectively offer their services. They know what to do if any problems arise.
4.Flexible and scalable – It will be easy for your company to grow or downsize as necessary when you work with a third party logistics company. If you decide to manage your own logistics, you will most likely experience a lot of obstacles when it comes to staffing, transportation, space, and labor whenever you upgrade or downgrade.
5.Continuous optimization – A good third party logistics company is ever-changing to meet your demands and requirements. Each part of the supply chain can be easily adjusted whenever needed. A third party logistics company also possesses the tools and the technology to monitor and analyze practices, which can eliminate inefficiencies in the supply chain.
6.Real time freight data – A third party logistic company is able to provide real time freight data that can help you make better business decisions.
7.Increased customer service – Thanks to third party logistics automation services, you and your customers can easily find out when products will arrive. A 3PL can also offer the proper freight accounting and insurance as well as auto-pickup and automatic notifications.
