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Why using a 3PL, is an advantage

third party logisticsAs companies look to the future, more and more of them are realizing the benefits to be gained by outsourcing their supply chain management. The integration of a third party logistics provider or 3PL allows companies to leverage a large network of resources to develop an all in one solution for assembly, packaging, warehousing, and distribution.

3PLs allow for each step in the supply chain can be executed in the most efficient, cost effective way. 3PLs can leverage relationships and volume discounts, resulting in lower overhead and the fastest possible service, all things unavailable with an in-house logistics team.

Today companies are always chasing to keep up with the 30 second attention span, rapidly-evolving, customer-centric environment in which they operate in. Even knowing what technology is needed can be challenging for supply chain leaders; with much of the industry blind to the future ROI. Moving forward with the expectations that what has worked for a business in the past, will keep working in the future, has paved the road to the future with the ashes of obsolete companies… don’t see many people rent a movie from Blockbuster.

The old regime is being replaced by a new level of demands on cost, service, and quality. A benefit of using a 3PL 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.

To keep your company on the right track the integration of a 3PLs knowledge of industry best practices, will create fortified lines of communication keeping you 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.

In my personal experience I have seen the 3PL ecosystem comprised of a mixture of both senior experience and youthful innovation, leveraging each other’s skill sets and knowledge. This all culminating in a progressive platform to help maximize profits, reduce wait times, and improve customer service. Allowing your business to grow for years to come, by providing the resources to streamline your supply chain, reduce inefficiency, and the technology that ensures your goods arrive when and where you need them.

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