Logistics. It can be an important part of a company’s success, especially if that company is trying to enter a new market.
Globally, the logistics industry is expected to be worth nearly $13 trillion by 2027.
With the world more connected than ever, you can start to understand why. If organizing logistics intimidates you, you do have the option to go to a third party logistics company.
To take this a step further, you should get third party logistics from China.
Why is this a good idea? How will this benefit your company?
These are some of the biggest reasons.
1. Saving Money
One of the biggest reasons why you should use a 3pl in China is because it can save you money. A big reason why this is the case is because when it comes to third party logistics providers, you are not their only customer.
What this means is that they can use the same mode of transportation and the same routes for several customers. The people that run these things may appreciate that business, and decide to offer the logistics company a discount for bringing bulk orders on their routes.
Let’s use a cargo ship as an example. This ship may go from Shanghai to Los Angeles on a regular basis and it can fit 100 containers on the ship.
Your orders alone in this example may only be enough to fill five containers. However, a logistics company may be able to combine several orders and fill 90 containers out of a possible 100 on that ship.
Because they can fill so many more containers in one trip, these ships and ports may give them a discount on space and then the third party logistics company can pass some of that discount on to the customer.
2. Experience
Another benefit to outsourcing your logistics is that you are likely going to get a company that is very experienced doing this. What this means is that they will know how to get your products out in the fastest time possible and know how to fix sudden issues that may come up.
It could be something as simple as not having enough space on a cargo ship. In that case, a logistics company may be able to talk the ship into squeezing your order in or come up with an alternative route at the last minute.
Things are going to go wrong in every aspect of your business at some point. When it does for logistics, you are going to want people who are very experienced at handling these situations to deal with it.
3. New International Opportunities
One thing that you may not consider when you first try to organize your logistics is how many international opportunities that you could get from doing this. Well, a third party logistics company can help you get exposed to those opportunities.
If you are looking for one in China, you may find that the logistics are so good if you are basing your routes in China, that you may consider moving all of your manufacturing to there.
China has over 28% of the world’s manufacturing. This means that those costs and the logistics that go with it are set up to be affordable because so many of their products are being exported.
So, you could see this as a business owner and realize that having a factory in China to manufacture products may benefit your business. With logistics attached, you can likely still find a way to get your products to the United States or other countries affordably and quickly.
On top of this, you may realize that there are bigger market opportunities in other countries than you originally thought. If a logistics company exposes you to a route to Singapore that you never thought about and those customers end up liking your product, you may just find a new audience.
4. More Industry Knowledge
Finally, having someone help you with logistics can give you a better idea of not only that industry, but your own industry. It can give you insight on what your competitors are doing and what you have to do to either keep up with them or surpass them.
You could find out that a lot of your direct competitors are already using something like this and you will have to as well to keep up with the competition. Or, you could find out from someone in the logistics company that there is an even faster way to get your product out that other businesses have not discovered yet.
This could be your opportunity to jump on something early. It can also benefit you to pay attention to this in more detail because it could influence what marketing strategy you want to have in the future.
A big part of that is the time, effort, and money it takes to get products to certain destinations. Make it easier on yourself and embrace the knowledge presented to you about how efficient this can be.
Hire a Third Party Logistics Company
These are some of the reasons why you should hire a third party logistics company. If you hire one in China, it can not only save you a lot of money, but there could be potential to open up a lot of shipping routes for you.
On top of this, you could gain a bigger international market for your products because of this efficiency and gain more industry knowledge.
Do you want to know more? Message us with your questions today.
