Why Third Party Logistics Is Important For Your Business

As your business evolves, you may find you need to outsource manufacturing abroad, target foreign markets, or even source raw materials from low-cost countries. As your business becomes global, you may find that you spend more and more time on logistics than any other operation. By partnering with a third-party logistics provider you are assured of saving your time and money, and effectively outsourcing all product handling. From receiving to storing, to packing and shipping, an expert logistics provider can enable you to robotize your most tedious operations with the goal that you can concentrate on your center capabilities. Here are a few service offerings that may make sense for your business.

Dedicated Fleet

 For regular transportation service, a logistics professional can set you up with a dedicated service of fleet vehicles to cover even the busiest delivery schedule. A professional logistics provider will help engineer the perfect system to suit your business. If you need time-sensitive delivery to retailers or need a regular supply of raw materials inventory delivered to your production line daily, a dedicated fleet can easily be embedded in your supply chain where you need them. Custom software will be coordinated to give continuous conveyance reports to enable your logistics provider to make much more prominent efficiencies in your store network.

Inter-modal

For interstate shipment of inventory, you need a sophisticated inter-modal network of rail and truck services to cover your entire market. If you have distribution centers as far apart, a logistics consultant will help you consistently broker the best deals, with the most reputable carriers for maximum accuracy and timeliness of orders to make sure goods get where they need to be, when they need to be there.

 

Transportation Brokerage

As an individual or a small business, it can be very difficult to secure a good deal of freight transportation. If your orders are relatively small, a freight carrier will charge you for an entire container of goods. A transportation broker serves as an intermediary between you and the carriers, and since they broker freight for many different clients, they can batch shipments so that all can share in the cost savings. Often these brokers have extensive networks of trusted carriers that they regularly rely on to ship goods quickly, accurately, and safely. Using a freight broker means that you have only one point of contact should an order be delayed or there be some other concerns, and saves you the hassle of tracking down shipments in a vast chain of carriers.Why Third Party Logistics Makes Sense to Outsource

Experience in Navigating Regulatory Processes

 

One of the best benefits of partnering with a 3PL company is that they have the years of experience and education to manage your shipment from start to finish. Not only can they broker your shipment across a variety of carriers from door-to-door delivery companies, to international freight, or even air cargo; they also can make sure your shipment clears the sea of paperwork it needs to clear customs and arrive at its destination on time. Because they spend so much time up-training and re-educating themselves on the latest regulatory changes made by the departments of commerce in multiple countries, they can make sure you have all the documents, signatures, and information you need to process your shipment faster than ever.3PLs Get The Best Shipping Rates

While a logistics provider has all the education and experience it takes to help your cargo meet all legal and regulatory expectations, their biggest advantage lies in their ability to save you money. As a sole person, finding a carrier who can transport your goods safely and inexpensively is nearly impossible. A seasoned logistics professional, on the other hand, has a vast network of carriers they trust and rely on daily. Your 3PL will submit a request for proposals to multiple different carriers, initiating a bidding war that gives you the best possible shipping rates.

3PLs Get Quantity Discounts

Additionally, they can often batch your shipment with others headed to the same destinations to achieve the greatest cost efficiency. In other words, if your shipment is smaller than a full-size container, your 3PL may suggest batching your order with another shipper’s so that you can both take advantage of shipping discounts due to quantity. This is something no individual shipper could hope to accomplish. The 3PL takes advantage of shipment scalability to get the best possible deal for his or her clients.

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