Customer Experience, Freight Brokerage, Ominchannel, Supply Chain, Supply Chain Management, Third Party Logistics
Benefits Of Partnering With A 3PL | Navigating Supply Chain Management
There are several advantages companies can receive by outsourcing their supply chain management to a Third-Party Logistics (3PL) provider. As companies begin to grow, they may realize an in-house logistics team will lack the expertise needed to manage complex logistics operations cost-effectively. On the other hand, larger companies can find they don’t have the workforce required to handle a high shipment volume. A Deloitte study shows that 79% of businesses with highly efficient supply chains enjoy more significant than average revenues than others in their industries. Companies with such optimal supply chains have 3x faster cash-to-cash cycles.
Crafty businesses outsource supply chain management to professionals to gain several significant benefits and, thus, position their business for success. A trustworthy third-party logistics provider will take over the trouble of running your supply chain network, allowing you to:
Generate new ideas
Build better products/services
Strengthen customer relationships
Design and develop future strategies
What’s more — outsourcing to the right service provider not only allows you to focus on your core business, but you also enjoy the competitive advantage that comes with hiring supply chain management experts, including their access to resources, capabilities, technologies, skills, and networks. The following are the top advantages of partnering with a 3PL.
A 3PL’s network of transportation providers is a significant resource for any company with freight to move. Searching for proper equipment, insurance, and other qualifications can be a considerable undertaking—however, a 3PL vets their carrier network to include only qualified and reliable service providers. 3PLs can also leverage carrier relationships and volume discounts, which results in lower costs and faster service. Ultimately, choosing a 3PL allows businesses to benefit from capacity they would be hard-pressed to find in-house.
Save Time and Money
Outsourcing logistics saves a considerable amount of time and money for any organization. Using a 3PL can eliminate the necessity to invest in warehouse space, technology, transportation, and staff to execute supply chain processes. 3PLs also save time for their clients by handling day to day functions like booking, billing, and training; leaving companies ample time to focus on their core competencies.
Scalability and Flexibility
A benefit of using a 3PL provider is the ability to scale space, labor, and transportation according to inventory needs. Businesses with seasonal periods can enjoy stress-free transitions between industry ups and downs, having the ability to utilize more space and resources when needed. Using a 3PL provider allows your business to grow into new regions without barriers.
Businesses can have confidence knowing reliable and experienced professionals are meeting their supply chain needs. A 3PL can share vital information tied to regulations, the freight market, and industry insights. A 3PL will often work with the same receiver locations for multiple clients, allowing them to share information on receiving preferences. Understanding customer requirements and communicating them to carriers can make a massive difference in performance.
3PLs have the expertise to help navigate manufacturers through new security regulations and can provide counsel on best practices to improve security policy and procedures. In many cases, 3PLs can manage the implementation of a supply chain security program, from facility and asset security to security monitoring services and training.
Providing All Services Under One Roof
When all your freight, distribution, eCommerce, warehousing, etc. services are managed under one roof, it will save time and money, and probably give you comfort to know that everything is taken care of. Plus, when all logistics are connected, you as a business owner will have more control and better visibility, which means a smoother operation for your business. A solutions-based 3PL will have the labor, resources, infrastructure, and capital deployment to bring all the required services under one roof. Whether you need warehousing, value-added services, customs clearance, international freight forwarding, domestic transportation, or even IT-support, you can rely on a third-party logistics provider to take care of your business.
The value a 3PL provider can bring your business includes better rates, services, expertise, and a vast network of industry partnerships all along the supply chain. Many companies come to this understanding quickly and understand the benefits of outsourcing. Choosing the best 3PL, one that is well suited to your needs, will take a bit of effort upfront but will bring long-term benefits. A 3PL with core competencies that are the right fit will mean a long-term partner interested in generating growth for your business. If you are looking for help managing your logistics and supply chain, we would love to hear from you. Please send us a note to connect about how Taylor Logistics can help your company.