Rationale for Utilizing 3PL in Supply Chain Management

Did you know that 75 percent of shippers agree that 3PL logistics helps reduce overall logistical costs?

For a business that depends on overseas shipping, logistics can present a challenge. If there are gaps in your supply chain, it can mean delays, increased costs, and unsatisfied customers.

This is where 3PL logistics can help. It can offer a solution to all of your supply chain issues.

Read on to learn more about this supply chain management solution.

What is 3PL Logistics?

In simple terms, third-party logistics, or 3PL, is a service that lets companies hire third-party businesses to complete jobs in their supply chain. It is a form of outsourcing. 3PL providers offer effective ways of closing gaps in your supply chain by providing warehousing, packaging, and transportation.

Many 3PL companies offer product procurement, as well, to ensure that you have many sources for the materials you need.

3PL providers use the latest technology for route optimization services to make deliveries as efficient as possible. They also use advanced strategies to find the simplest solutions to even the most advanced logistics problems.

Benefits of 3PL

3PL can offer a wide variety of benefits for companies that choose these services. If you are thinking about expanding your business, trying new markets, or even if you just want a more efficient supply chain, 3PL can be the right choice.

Minimizes Costs

The companies that offer 3PL are experts in logistics and have built a network and relationships in the logistics sector that most business owners do not have access to. Not only does this allow them to offer you better logistics, but it can also allow them to negotiate better deals for your company. This means you save time and money.

3PL will also be eliminating the need to invest in warehouses, more staff, tracking technology, or transportation. They can provide all of this for you.

Offers Experience and Expertise

If you are looking to expand into other markets, you may not know how that market works. 3PL providers have years of experience and expertise. They will know how to deal with transport documentation, import and export of goods, economic regulations overseas, and international compliance.

3PLs have lots of experience with freight management and with all manner of transportation.

Having people who know what they are doing will not only reduce costs, but it will also avoid delays, cutting down the cycle time and improving customer satisfaction.

Allows Company to Focus on Its Strengths

When you choose to outsource your logistics, you are giving your company’s team the chance to focus on the business’s strengths. Logistical issues can take a lot of time to fix. Instead of spending it trying to plan transportation or warehousing, you can instead focus on your company’s goals.

Allows for Scalability

3PL allows you to scale down or scale up as needed.

If your business is in a low patch of sales, you can scale down to avoid redundancies and the waste of resources. When sales pick up again, 3PL lets you upscale as quickly as you need to.

They can allow you to easily navigate the transitions between seasonal periods or any market fluctuations.

Enables Market Expansion

Third-party logistics ensures that you have access to markets you would not otherwise have been able to enter. If you do not have an established presence in a particular country, for example, 3PL will lead the way.

Because of the experience of providers of 3PL, you know you will get the introduction to that particular market that your business needs.

Offers Reverse Logistics

High return volumes from customers can put a big strain on your supply chain. 3PL can help with reverse logistics, as well, to make sure there are no delays and that your customers receive replacements in a timely manner.

If you have a 3PL that offers warehousing, tracking technology, and transportation, it is much easier for clients to get hassle-free returns and replacements.

Improves Customer Satisfaction

The minimizing of delays and prompt response times will have a significant positive impact on your customer base. Happy customers will keep coming back.

Mitigates Risks

Supply chain issues arise daily, but when you have the services of a 3PL company, it will be up to them to find solutions and alternatives.

Freight claim management is another area in which 3PL can help. They will ensure that your products are safe. If they get lost or if they are damaged, they will have the necessary insurance that will cover those costs.

This removes responsibility from your hands, saving you stress, time, and money.

Constant Upgrades

You want your business to be at the cutting edge of logistical technology, but you may not have the time or knowledge to make that happen yourself. 3PL services make it their business to use the latest technologies to answer all of your logistic needs.

They have the right management software to analyze and look for issues or weak spots in your supply chain to avoid disruptions.

Most 3PL suppliers use:

  • Real-time order tracking
  • Transportation management systems
  • Data analysis and reporting tools
  • Route optimization tools
  • Freight payment solutions and audits

3PL providers will invest in the right technologies to enhance their own area of expertise, so you can always expect the latest technological advances in logistics.

Turn to 3PL Logistics

Avoid delays, higher logistic costs, and make your customers happy by turning to 3PL logistics for your company. 3PL will allow your business to grow as you have always envisioned.

Contact us today to learn about our warehousing and shipping options that take 3PL to the next level. With distribution centers across the U.S., our 32 years of experience is transforming the third-party logistics industry. Find out how by reaching out!

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