Logistics is a vital support role in any company, but business owners looking to optimize their operations look to outsource this responsibility to a third-party logistics (3PL) company. It’s obviously a viable strategy, as many Fortune 500 companies already make use of 3PL services.
3PL companies can manage all of the details relating to your supply chain management. They can arrange for the transportation of your freight, secure warehousing, and oversee packaging.
Working with a 3PL company will be a boon for your business. They offer plenty of advantages over handling your logistics in-house.
Keep reading to learn the eight benefits of working with a 3PL company.
1. You’ll Save Money
Saving money is the most common reason companies look to work with 3PL services. If you currently manage your company’s logistics, you will lower your expenses working with a 3PL provider.
A 3PL company can help reduce logistics-related costs in many different ways. They also have connections in all areas of the logistics world, and they’ll pass these benefits on to you in the form of cost savings.
They’ll use their network to negotiate lower shipping rates, reduce your warehouse costs, and provide key optimizations that keep your business running smoothly.
2. Help Expand to Other Markets
Given the expansive network of the best 3PL companies, you’ll have access to certain markets that were previously out of reach. This allows your company to expand and tackle larger challenges.
You won’t have to invest much time or money in setting up operations in a new market. Your 3PL will handle the leg-work for you. They’ll already have connections to help establish your presence. You’ll immediately have access to shipping lines and warehouses without having to comb over every minor detail.
Expanding into these new markets helps your company grow. You’ll reach new customers and generate more revenue with minimal investment.
3. Expert Help When You Need It
Supply chains are full of moving parts. You have to manage transportation documents, delivery times, maintenance, and so much more.
3PLs are logistics professionals. They have knowledge and experience that allows them to predict and respond to the changing tides in this highly-complex industry. This expertise makes them a valuable ally in the world of supply chain logistics.
No matter how much time you devote to learning the ins and outs of logistics, you’ll never be able to match the expertise that working with a 3PL affords you.
4. Provide Scalability
Plenty of businesses go through peaks and valleys. Weathering the hard times and being able to ramp up production during peak times separates successful businesses from those that are left behind.
With a 3PL, you can rest easy knowing your operation is scalable. Your third-party logistics provider will be able to secure additional resources for you during busy times and scale them back if demand falls. All of this comes without requiring a significant investment of time and money on your end.
5. Access to Cutting-edge Technology
In today’s world, technology can make or break a business. Fortunately, working with a 3PL gives puts the power of the leading logistics technologies in your hands.
You’ll have access to things like real-time order tracking, route analysis tools, freight auditing programs, and transportation management systems.
3PLs are constantly looking for more ways to optimize operation in the technical sense. Leading 3PLs are currently finding ways to use blockchain, automation, and machine learning to further improve their logistics efforts.
Working with a 3PL places you at cutting edge of advancements in logistics technology. This will give you a leg on other companies in your sector who aren’t as forward-thinking.
6. You Can Focus on Your Business
Managing the logistical side of your business on your own takes a significant amount of time. You have to track orders, make transportation arrangements, schedule pickups, and deliveries, and issue billing statements.
Your 3PL will handle all of this and more. They have already established time-tested systems that streamline these processes.
This affords you more time to focus on the other aspects of your business. You also won’t need to hire other individuals to manage this side of the company. You’ll save money and will have the ability to augment other areas of your outfit if you need to bring additional personnel on board.
7. Quality Assurance
If you hire a 3PL, you can rest easy knowing that your operation is in capable hands. There’s very little risk involved with using a third-party logistics company.
They have rigid standards for all their carriers so your freight is always professionally managed. Should something happen to a shipment, a 3PL maintains insurance that covers the costs.
They’ll also be transparent about all their business methods. 3PLs will follow the contract they sign with you and document their moves every step of the way. You can audit their practices at any time using the most relevant and up-to-date information.
8. Improve Customer Satisfaction
Contracting a third-party logistics firm has many tangible benefits on the business side of operations, but your customers will also notice its effects.
You’ll have faster shipping, expand into new markets, and may be able to reduce shipping costs. All of this leads to more satisfied customers.
Happy customers are more willing to purchase your goods or services again, will leave complimentary reviews online, and can become loyal to your brand.
This gives you the opportunity to seriously grow your business. You’ll have more brand recognition and will be able to better withstand periods of lower sales.
Improve Your Logistics With 3PL Services
Many of today’s top companies use 3PL services to manage their supply chains. They can help your business save money, improve customer satisfaction, and allow you to expand into new markets without requiring a large investment on your end.
These companies also make use of the most advanced logistics technologies to optimize your business and provide unmatched scalability.
Looking for 3PL services in China or Southeast Asia? China2West has everything you’re looking for in a 3PL. Reach out to see how they can help you.