If you’re looking to save time and money on your supply chain, you’ll want to partner up with a business that focuses on doing specific processes really well.
A good 3PL can help you scale logistics up and down as needed, without requiring a significant investment in assets like vehicles or property. You are able to ship more orders during your busy season, and then go down your warehouse and your labor back down when you don’t need as much.
What does Third-party logistics do?
Third-party logistics (3PL) are companies that provide outsourced logistics to other companies, giving businesses the ability to focus on core functions. The 3PL service may be a single provider, such as transportation or warehouse storage, packaging, and order fulfillment. 3PLs can identify and fill the holes in your supply chain.
These business partnerships allow shippers to more easily expand operations while increasing efficiency and reducing costs. 3PL providers can offer a variety of advantages as follows:
Do not waste time and money
This is a major benefit that 3PL providers can offer to organizations. You don’t have to spend money on building warehousing or hiring additional employees, companies can reduce their costs drastically. 3PL companies not only save companies time and money in the short and long term.
Possibility to scale your business with flexible solutions
3PL companies have the ability to scale space, labor, and transportation based on the variation of your inventory. This is the case when you’re dealing with season inventory or a new product launch.
3PLs can help provide adequate space and resources between your busy and slow times, giving you maximum amounts of flexibility during any time of the year. So, when sales are down, there are no redundant investments and unutilized resources, you can customize your own solution depending on your needs.
3PL companies have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. |Background photo created by pressfoto – www.freepik.com
Putting cost efficiency at the center of your business
3PL companies specialize in logistics and have a more extensive network, great relationships within the logistics sector, higher influence during negotiations, and will also be able to provide greater volume discounts and prompt service to clients. So you can take advantage of this and minimize overhead costs.
Shippers can avoid the expense of paying for unneeded warehouse space, infrastructure, equipment, utilities, and labor by only paying for what they use. This reduces risks and keeps costs proportional to needs ensures consistent margins and enables better growth planning.
Focus on your know-how
3PLs will give your organization plenty of rope to focus on its core competencies instead of getting involved in non-core but critical functions. Your business can have the benefits of logistical expertise without investing in internal resources
Access to new markets
3PL enables business growth by giving companies access to markets where they don’t have an established presence because they can have access to distribution centers and warehouses in various regions. Being able to manage inventory in a new market without having to spend money on warehousing, equipment, and labor can save money while giving them the opportunity to strategically position themselves to better serve their customers
An experienced 3PL provider: the best solution for your logistics needs
Companies actually become more efficient and save money in their supply chains by partnering with an experienced 3PL provider with an extensive network and warehouse locations. In this order of ideas, it’s really important to choose carefully your 3PL partner because it could be your company image with the customer.
If you’re looking for an experienced, dependable 3PL provider to handle all of your supply chain needs, in CARGO CARE SERVICES we can help you with your Warehousing and Packaging needs over all the US, we have 12 years of experience and a professional team who can assist you with your projects!