Any company that sells products must have a reliable delivery system in place to ensure that all items are delivered to customers on time and in perfect condition. For this to be possible, the delivery system must include warehousing, picking, packing, and shipping operations, which are gathered under the generic name of logistics.
Unfortunately, managing logistics is a major challenge for many businesses. Without streamlining logistics operations, a company can easily run into cost overruns, which will negatively impact its overall activity. How can you reduce the risk of cost overruns and outright failure? By simply consulting with a third party logistics provider, or 3PL.
When Should You Approach a Third Party Logistics Provider?
Most businesspeople who need help to coordinate their supply chain activities find third party logistics providers very useful. For instance, if you do not know how to manage picking, packing, and shipping operations, how to process returns and inventory adjustments, and how to find the most profitable trade routes, it is time to look for a reputable and experienced 3PL. Another situation in which you may consider approaching a third party logistics provider is when you have no time to handle logistics.
However, an increasing number of organizations are turning to 3PLs especially when they want to improve their competitive position. Over the years, 3PLs have gradually extended their activities, offering a wide variety of services at low cost and ensuring superior outcomes compared to the companies performing logistics activities in-house. By turning logistics operations to a third party, you can benefit from sure-fire methodologies and techniques, which will save your organization a lot of time and money, while increasing customer satisfaction.
How is this possible? Most 3PLs have the advantage of using well-established strategies along with dedicated distribution centers and storage facilities. Additionally, they collaborate with numerous trucking and shipping companies, which means that they are able to ship products more efficiently than the organizations operating within other industry sectors. Frequent deliveries reduce inventory levels, enabling superior warehouse management and control. Also, freight and shipping costs are almost always better than what a company can secure on its own for the simple fact that a third party logistics provider moves a lot more merchandise.
Another great thing about outsourcing logistics to an external party is that it will manage different operations so that you can focus on other business aspects. When you do not have to deal with things you know nothing about, you can spend more time and energy trying to find new customers and make them happy, which will eventually translate into more business.
Even more important is that a third party logistics provider offers incredible convenience and flexibility, being able to scale space, labour, and transportation according to your company’s needs. If you are running a seasonal business, for example, a 3PL can help you manage industry ups and downs efficiently, while allowing you to only pay for what you use. With a reliable third party logistics partner on your side, you will enjoy stress-free transitions even when expanding into new markets.
Opting for a reputable and experienced third party logistics provider is one of the best things you can do to streamline logistics operations, regardless of how complex they are. Even if you are an expert in logistics, it does not hurt to consult with another expert, who may suggest additional logistics alternatives you might not have considered. Now, if you intend to explore the best logistics options for your company, we invite you to contact our friendly advisors at 3PL Links.