While there’s definitely more many reasons why a company might look for a third party logistics provider here are a few reasons:
- To provide supply chain support to penetrate new regional markets or countries where your company doesn’t currently have a presence without the costs involved in such venture
- If you are a company whose business is seasonal in nature using a 3pl provider allows you to cut the operating costs.
- To increase on-time performance and increase efficiency with the management of your inventory by using a 3PL provider that has the technology and capability to deliver an effective solution.
- To take advantage of lower transportation rates provided by logistics firms that have buying power due to the volume of freight they deal with.
- To quickly build a multi-location distribution network with lower risk, without the significant capital investment associated with building out a network on your own.
- By using a 3PL provider, you can divert your resources to grow your business by engaging in new marketing strategies