Advantages of Outsourcing 3PL Providers
There are numerous benefits businesses can get by outsourcing supply chain activities and logistics to a 3PL provider. A 3PL provider offers a wide range of supply, purchasing, and logistics solution. Whether in packaging, assembling, warehousing and distribution all these and much more can be easily granted by a third party logistic company. A business that uses third party logistics have a reliable logistics advantage thus maximizes their profits. Here are some of the advantages a business can gain by using a 3PL provider.
Third party logistics providers have access to a wide network of shippers, carriers; warehouses thus have an advantage over in-house supply chains. Resource network allows for ease of operations thus supply chain can be executed in an efficient and cost-effective manner. Using a third-party logistics provider allows a business to benefit from resources which cannot be found in-house.
Expertise is the other important advantage of choosing a third-party logistics provider. This is so because the providers are more knowledgeable of the industry practice and are also up to date with new developments whether in technology, manufacturing or logistics. Supply chain management and logistics are what they have specialized in as is what they do every day, unlike businesses who only access logistics services when the need arises. Outsourcing the services of a supply and logistics company allows a company to focus on its core competencies while allowing the expert to do what they know best. Logistics company use software’s that are capable of inventory management advanced reporting and can monitor the entire process. Supply chain experts can also employ the use of just in time practices to ensure orders are delivered on the right time and under the right conditions.
Using a third-party logistics provider allows a business to benefit from resources which cannot be found in-house
Saves time and money
Logistics and supply chain companies are well versed with the current market transportation and storage costs thus can help a business get affair deal. In addition, these companies are well networked thus know the routes and best transportation method which ensures on time deliveries and saves costs. Contracting a logistics company also allows you time to concentrate on the development of your business.
By being linked to a wide network, a logistics company can help leverage relationships and volume discounts. If you are shipping small quantities of goods the shipping companies because they employ the use of economies of scale will give you better rates as they ship large volumes of freight on a daily basis.
Flexible solutions for growing companies
One thing that is quite essential for any growing business is scalability. Market trends are not always stable and are subject to changes thus a business needs to adapt to sudden and unpredictable market forces. For this reason, growing businesses need flexible solutions which can only be met by third party logistics companies who are always flexible and have specialized in the business.
Logistics and supplies companies do have resources at hand thus capable of making any adjustment any time to improve the supply chain. Third party providers have the tools required to restructure a supply chain process whether in technology or distribution. Outsourcing the services of the providers will ensure continuous improvements are made in the logistics process.
Justin Bright – CEO Brighter Logistics