You might have heard that third party logistics providers can save you time and
money, but you dont know exactly how. And while 3PL seems like a good idea,
theres still a part of you thats nervous about handing over the keys to an
outsider. Thankfully, plenty of other decision makers have gone through the same
process. Here are ten of their most important reasons to make the switch.
Reduce Liabilities
Highly skilled, specialized staff members at your logistics company can handle
everything from warehousing to delivery. You traditionally dont have to
worry about securing permits, training team members on hazardous materials,
or maintaining umbrella insurance policies.
Track Shipments
Thanks to transparent tracking from major carriers, customers expect to know
as much information as possible about the status of their order. Many logistics companies now offer streamlined tracking tools that interface with freight
carriers, as well as communicating the internal status of parts and equipment.
Build Carrier Relationships
Relying on a single carrier for your shipments can expose your company to higher
risk from accidents, work stoppages, or even weather events. Third
party logistics companies work with multiple carriers who compete among themselves
for access to your business.
Streamline the Back Office
As your company grows, so do the demands for record keeping and customer service.
Third
party logistics companies can manage information on your behalf, sharing
it with regulators, suppliers, and customers as necessary.
Scale Quickly
What happens to your company if you suddenly find your product featured on
national television? Logistics companies can handle sudden surges in demand
by coordinating your order processing, manufacturing, and fulfillment needs.
Leverage Combined Discounts
Building your own warehouse and managing your own carrier accounts may seem
affordable enough, until you review the preferred pricing you enjoy as the
partner of a third
party logistics provider. By combining the business of
their collective client bases, 3PL companies can demand deep discounts from
freight companies, landlords, and transport vendors.
Focus on the Big Picture
By reviewing daily reports and staying informed about service exceptions, you
can eliminate much of the status chatter that distracts many company leaders.
Trusting in the track record of your logistics company helps you remain focused
on innovating new products and services.
Treat Your Customers to Top Service
Todays customers demand a level of personal attention that can be tough to
attain, especially among newly trained team members. Third
party logistics companies often maintain their own call centers, staffed with experienced
customer service experts. By allowing these highly skilled individuals to
represent your company, your customers can enjoy top service without additional
payroll to maintain.
Decrease Shipment Time
Many logistics companies maintain warehouses at strategic locations around
the world. This way, your products or inventory can be shipped to customers
from the closest location. You can reduce your need for on-site storage while
maximizing your customers perception of your service.
Even More Reasons to Consider Third Party Logistics
Of course, veteran company leaders often have more than just ten reasons to
partner with a logistics company. Many industries rely on more specialized
service offerings, such as assembly, kitting, and localization services.
Exploring relationships with logistics companies is often as easy as filling
out a quick online form.
Sources
Access America
Purchasing
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