The Logistical Lowdown

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3PL Partners Help Small & Mid-sized Shippers

Posted by Meredith Mickey on 6/28/17 7:00 AM
Meredith Mickey
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Third-party logistics (3PL) providers specialize in logistics services for shippers of all sizes from Amazon to small local businesses with a single product. 3PL companies can take over the supply chain processes that plan, implement, and control the flow and storage of goods for customers; which can also include assisting with or managing transportation, warehousing, distribution, and/or re-packaging needs from a single source, eliminating the additional expenses and time associated with setting up and managing multiple vendors. Over 86% of Domestic Fortune 500 companies use 3PL providers for logistics and supply chain functions.  

Still unsure? Take a look at these five benefits of working with a 3PL partner:

1. Expertise

3PL providers are true experts in logistics and supply chain management with decades of experience and knowledge of industry best practices. A strategic 3PL partnership adds value to your business by providing reliable logistics advantages and maximizes profitability through expertise and resources.

Knowledgeable and passionate 3PL partners are always staying up-to-date with the latest developments in technology and best practices. Warehouse management systems and other logistics software are an expensive investment. Since 3PLs specialize in logistics, they make the technological investments so you don’t have to, saving you both money and time.

Partnering with a 3PL allows your company to focus on your core competencies and growing your business. 3PL providers are well equipped to handle any hiccups in your supply chain process that could easily cripple your sales. With knowledge, passion, and technology, 3PL companies provide the logistical expertise that your company needs to succeed. 

2. Efficiency

Many small and mid-sized shippers experience inefficiencies in their standard shipping, transportation, and other supply chain processes. Inefficiencies can be costly and have a major effect on a business’ profits and customer satisfaction.

With an increasing driver shortage, climbing fuel prices, and political uncertainty, many shippers are struggling with their in-house logistics budget and processes. Steve Syfan, Executive Vice President of Syfan Logistics, believes that companies who have been running their own shipping departments in-house.

3PL providers are experts in logistics. They can use their knowledge and experience to eliminate inefficiencies in a shipper’s supply chain that will not only reduce costs, but also expedite shipping and increase customer satisfaction in the long run.

3. Management

With expertise and experience comes quality logistics management. Capable and reliable 3PL partners hire the best employees to manage your inventory with the precision and accuracy you need to run a successful business.

They will work with you to determine your logistical needs and will integrate their knowledge within your business practices to ensure customer satisfaction is guaranteed. If something is not going right, your logistics partner will work with your business to optimize and improve every link in your supply chain. With a knowledgeable and trained staff, and the latest technology, small and mid-sized shippers can just sit back and focus on their core business competencies.  

4. Reduced Costs

Working with a 3PL provider may seem expensive at first, but outsourcing your logistics can actually save you money. By partnering with a 3PL, you eliminate the need to invest in warehouse space, technology, transportation, and staff, which greatly reduces your overhead costs.

Reliable and knowledgeable 3PL providers can help you manage rising logistics costs because they already have processes and infrastructure in place. Additionally, they can manage freight claims, invoicing, insurance processes, and negotiate carrier rates that might be far higher if a small or mid-sized shipper tries to do it all alone.

5. Resources

3PL providers are specialists in the logistics industry and have a vast resource network available at their fingertips to meet your supply chain needs. From warehouse spaces in various locations to sophisticated inventory management technology, to trucking fleets, 3PL providers have all the resources that you need to execute your warehouse and distribution needs in the most efficient and cost-effective way.

Scalability and flexibility to scale space, labor, and transportation according to business growth is also an advantage. 3PLs help businesses enjoy stress free and cost-effective transitions between customers’ demands. Many small and mid-sized shippers experience seasonal fluctuations towards the end of the year during the holiday period.   

It’s Time to Start the Conversation

Working with a 3PL provider can help you reduce your overhead costs while you focus on your core business competencies. Whether you want to outsource just one process or your entire supply chain, expect to reap the benefits almost immediately. Contact one of our logistics coordinators today to start the conversation.  

Learn More About 3PL Partnerships

 

Topics: 3PL, Logistics

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