There is a multitude of benefits companies gain by outsourcing supply chain management and logistics to a value-added 3PL provider. Third party logistics offers an all-in-one solution for assembly, packaging, warehousing, and distribution. Utilizing a 3PL provides businesses with a reliable logistics advantage, and maximizes profitability through combined knowledge and resources. The following are 5 advantages to using a 3PL provider.
5 Advantages of Using a 3PL Provider
3PL providers have a vast resource network available that provides advantages over in-house supply chains. Using a 3PL’s resource network, each step in the supply chain can be executed in the most efficient, cost-effective way. 3PLs can leverage relationships and volume discounts, which results in lower overhead and the fastest possible service. Choosing a 3PL provider allows your company to benefit from resources that are unavailable in-house.
Save Time and Money
Outsourcing logistics will save a wealth of time and money for your company. Using a 3PL provider eliminates the need to invest in warehouse space, technology, transportation, and staff to execute the logistics process. 3PL providers can save from costly mistakes, and allow your business to build a global logistical network with lower risk and higher return. Additionally, 3PLs save you the time needed to carry out the supply chain. There is no need to worry about the paperwork, billing, audits, training, staffing, and optimization involved to get your goods where they need to go.
Ongoing Industry Expertise
A 3PL provider is knowledgeable of industry best practices and stays up to date with the latest developments in technology, manufacturing, and logistics. 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.
Outsourcing logistics allows your company to focus on your core competencies and leaves the rest to the experts. 3PL services will allow you to have peace of mind knowing your logistics needs are being handled by reliable, seasoned professionals.
Scalability and Flexibility
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. Using a 3PL provider allows your business to grow into new regions without barriers. Furthermore, as you grow, a 3PL provider can help you scale as they have the resources to seamlessly support growth into new markets.
3PL providers have the resources at hand to make adjustments and improvements to each link in the supply chain. 3PL professionals will ensure your needs are met, by using the fastest, most efficient, and cost-effective methods. A 3PL provider has the tools to restructure the supply chain and use technology that ensures the proper amount of goods arrive when and where you need them. Sophisticated management software can analyze and monitor practices to eliminate inefficiencies and streamline the supply chain. Outsourcing 3PL services will ensure continuous improvements are made to your logistics process. Third-Party Logistics providers can help maximize profits, reduce wait times, and improve customer service.
Why or why not would you suggest using a 3PL provider?