Companies are finding it more challenging to manage their logistics functions on their own, especially with all of the changes going on within the industry. From new government regulations to the current economic uncertainty, the challenges that all shipping operations are dealing with have made it necessary for companies to at least consider outsourcing some of their transportation services to a managed transportation partner or 3PL.
Why Outsource Transportation?
There are a variety of ways a logistics operation can choose to work with a third party to help them better manage their shipping operations. And, the closer your business relationship with your transportation partners, the more strategic the solutions you’ll find for improving your supply chain processes.
Start with some simple questions to assess your company’s current supply chain performance:
Would a logistics partner improve the reliability of your service to customers or lead to more sales growth?
Are your transportation costs market appropriate?
Is your operation limited by a lack of logistics technology or expertise within specific functions?
Leverage Logistics Experts
A managed transportation partner can provide support in these areas, and for your day-to-day workload. There are many additional factors to think about beyond just cost and service, though. 3PLs have the expertise as well as the resources to help shippers with scalability. They can also take some of the responsibility off of your plate, so you have more time to concentrate on other priorities.
Gaining access to advanced logistics technology through a partner will, for example, improve logistics execution, decision-making, and enable better operational visibility and streamline your transportation processes. With technology that offers real-time tracking services, you can track your freight in transit and keep yourself and your customers updated with current information. Paired with a 3PL’s extensive network of carriers and other resources opens up many opportunities for shippers to drive efficiencies and lower costs.
Before partnering with a 3PL, you should evaluate your current processes so you can find someone that will be able to meet your organization’s needs sufficiently. It also helps to research their network and their available resources to make sure they have the right tools to boost your business. Once you’ve figured out who the best-managed transportation provider is for you, your company can start realizing the rewards of a more efficient logistics operation.
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