The Logistical Lowdown

Outsourcing logistics functions can revolutionize your business and help you expand into new markets by managing every aspect of your supply chain needs giving you more time to focus on your core business.

In our prior blog post, It’s the Final Countdown to the ELD Mandate, we discussed the effects that the new regulation may have on the industry, focusing especially on shippers. Since the transportation/logistics/supply chain is not mutually exclusive, disruptions in one area of the chain can affect the entire process.

I’ve often heard that a Procurement or Logistics Director’s least favorite part of his or her job is 3PL selection.  Why? 

It’s simple; selecting the wrong 3PL can cause repercussions throughout the supply chain, ultimately leading to delays or outright failures in getting product into the hands of consumers, impacting sales and profits. It is your life line and one that many people depend on; stockholders, employees, their families, your customers, and their families. A broken link in your supply chain could cause loss of sales due to lack of trust and downtime, not to mention the effect it can have on your business' cash flow. 

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:

Ask any human resources representative and they will tell you: Having to hire and onboard new employees is a costly event, both in terms of actual financial resources but also in less tangible ones, such as time or productivity loss. 

On-time delivery is one of the biggest concerns for today’s supply and logistics businesses. Many factors contribute to delays, some of which are outside of the control of the logistics provider. From the more obvious, such as weather, traffic and delays on loading docks meeting on-time deliveries, or not meeting them, can have a critical impact on shippers and the entire supply chain.

Today’s business owners are tasked with competing in an increasingly more global market while ensuring materials are available and maintaining product inventory to meet customer demand without compromising cost or speed of products and services. Implementing lean logistics practices, or the reduction of waste from materials and products, order processing, employee time, and loss of sales throughout the supply chain, can mean crucial benefits to the bottom line of a business.

Cargo theft has been around as long has product has been transported. From pirates to road bandits, product en route from one place to another has always been at jeopardy for those who would take advantage. What can 3PLs do to protect their cargo?

 There can be plenty of uncertainty in the shipping and trucking business sectors. One way to reduce the chance of surprises is being proactive in creating and implementing an effective truckload freight strategy. An effective strategy can save time, money and plenty of headaches down the road.