3PL Logistics Companies offer the following advantages manufacturers, distributors and retailers can gain by using a 3PL:
Improve global capabilities. 3PLs have on-ground knowledge of markets, regulations and and understanding of capacity constraints.
Reduce costs. 3PLs can help reduce excess carrying costs, return goods cost and lost sales. They can also help manufacturers move more material with fewer assets while still meeting customer requirements. In some cases, manufacturers can realize savings when consolidating warehouses and/or using shared facilities operated by 3PLs.
Improve quality. Working with a 3PL logistics Companies, companies can expect to improve performance in areas such as reduction in inventory levels, greater product availability rates, fewer customer complaints and improved order accuracy. Manufacturers also will be able to better assess the performance of supply chain partners when they have good data.
Speed process change. It can sometimes be easier to make process changes with an outside provider, since you can tap into someone else’s existing infrastructure, technology and people. This is critical for manufacturers who need to grow at an accelerated pace.
Eliminate hand-offs. Oftentimes, the lines can be blurred between what 3PLs do versus their customers. . When you eliminate hand-offs, you can increase speed to market and reduce costs.
Third party logistics providers have a vast resource network available that provides advantages over in-house supply chains. Using a 3pl’s resource network, each step in the supply chain can be executed in the most efficient, cost effective way. 3PLs can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL provider allows your company to benefit from resources which are unavailable in-house.
What to expect from 3PL Logistics Providers
Save Time and Money
Outsourcing logistics will save a wealth of time and money for your company. Using a 3PL provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. 3PL providers can save from costly mistakes, and allow your business to build a global logistical network with lower risk and higher return.
3PLs save you the time needed to carry out the supply chain. There is no need to worry about the paperwork, billing, audits, training, staffing, and optimization involved to get your goods where they need to go.
3PL Logistics providers are knowledgeable of industry best practices, and stay up to date with the latest developments in technology. 3PL software is capable of advanced reporting, inventory management, and provides visibility to monitor the entire process. 3PL experts employ Just in Time practices to ensure the correct amount of inventory is shipped when and where you need it.
Outsourcing logistics allows your company to focus on your core competencies, and leaves the rest to the experts. 3PL services will allow you to have peace of mind knowing your logistics needs are being handled by reliable, seasoned professionals.
Scalability and Flexibility
A benefit of using a 3PL logistics provider is the ability to scale space, labor, and transportation according to inventory needs. Businesses with seasonal periods can enjoy stress free transitions between industry ups and downs, having the ability to utilize more space and resources when needed.
Using a 3PL provider allows your business to grow into new regions without barriers. 3PL providers have distribution centers and warehouses strategically located to allow for quick shipping of goods to anywhere in the world. Decentralized distribution offers lower costs, and provides quicker delivery times. 3PL providers have the resources to seamlessly support growth into new markets.
Continuous Optimization
3PL providers have the resources at hand to make adjustments and improvements to each link in the supply chain. 3PL professionals will ensure your needs are met, by using the fastest, most efficient, and cost effective methods.
3PL logistics providers have the tools to restructure the supply chain, and use technology that ensures the proper amount of goods arrive when and where you need them. Sophisticated management software can analyze and monitor practices to eliminate inefficiencies and streamline the supply chain. Outsourcing 3PL services will ensure continuous improvements are made to your logistics process. Third Party Logistics providers can help maximize profits, reduce wait times, and improve customer service