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.
Supply & Demand Chain Executive Announces the 2020 Pros to Know
Leading B2B Publication Releases Annual List of the Supply Chain’s Top Professionals including Taylor Logistics Inc. GM of Warehousing Grant Taylor.
Fort Atkinson, WI — March 15, 2020 — Supply & Demand Chain Executive, the executive’s user manual for successful supply and demand chain transformation, is pleased to announce the 20th annual listing of the 2020 Pros to Know in the supply chain industry.
The Pros to Know Awards recognize supply chain executives, and manufacturing and non-manufacturing enterprises, that are leading initiatives to help prepare their companies’ supply chains for the significant challenges of today’s business climate. This year’s list includes more than 200 individuals from software firms and service providers, consultancies or academia, who helped their supply chain clients or the supply chain community at large prepare to meet these challenges—and more than 40 Practitioner Pros, who do the same within their own companies.
“The supply chain profession is ever-changing, with transformative technologies and evolutionary best practices driving greater efficiencies and innovations for companies. At the heart of it all are supply chain professionals. Supply & Demand Chain Executive congratulates the 2020 Pros toKnow recipients who are setting the bar for supply chain excellence,” saysJohn R. Yuva, editor-in-chief for Supply & Demand Chain Executive. “Whether you’re a practitioner or provider, the leaders in the profession are growing each year, with rising standards and thought leadership. Reach out to our 2020 recipients and engage with them, ask questions and seek feedback. The supply chain profession is a community with a commitment to excellence that should not be overlooked.”
Supply & Demand Chain Executive received more than 500 entries for the 2020 Pros to KnowAwards.
Check out Supply & Demand Chain Executive’s website at www.sdcexec.com for the full list of all of the 2020 Pros to Know and Practitioner Proswinners.
About Supply & Demand Chain Executive
Supply & Demand Chain Executive is the executive’s user manual for successful supply and demand chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer executives and supply management professionals through the complicated, yet critical, world of supply and demand chain enablement to gain competitive advantage. Visit us on the web at www.SDCExec.com.
A warehouse typically refers to the establishment that a customer’s products are stored for a specified period. Warehouses generally are less high-energy than distribution centers. Sorting items, shipping them out, and replenishing stock are all a part of the daily functions. Distribution centers can act as warehouses too, but warehouses can’t double as a distribution center. Warehouses can be designed to receive goods directly from railways, airports, or seaports, and are usually equipped with forklifts and even cranes for moving and organizing products.
Distribution Center (DC):
A distribution center is slightly more complex than a warehouse in that it’s a more high-velocity operation as opposed to a static warehouse. Meaning that a distribution center offers more services to clients, whether they’re internal or external. A DC is generally thought of as demand-driven.
Fulfillment Center (FC):
A warehouse facility focused on order fulfillment in which the company fulfills its obligation to send a person a finished good. Typically refers to services of a store, either brick, and mortar or e-commerce: orders received, packaged, and shipped to end consumers.
Before working with a third-party logistics (3PL) provider, it’s essential to understand the functionality of that relationship. What responsibilities can a 3PL take off your plate, and what will still be in your wheelhouse?
Here’s a breakdown of how Taylor Logistics freight brokerage works, along with critical points surrounding our value-added services and essential points for how we can help you.
What is a freight brokerage?
Our brokerage helps customers with ready to haul freight find qualified carriers to haul the load. Typically freight brokers do not provide the truck or the shipping but provide the essential service that will help the shipper find the carrier. However, In addition to our brokerage out parent company Taylor Distributing in Cincinnati, OH has a full fleet of trucks ready to assist our customers with any intermodal/drayage needs.
Shipping Expertise – This is what our freight brokers do best, working with our brokers allows you access to their knowledge of best practices and latest technology.
Communication – We can track and log each step of the journey of your product. Our team is in constant contact with drivers, and we have access to GPS/EDI technologies to maintain the status of an order.
Flexibility and Scaleability – We provide our customers more, or less capacity based on their business from industry trends to seasonality. We are also connected to service providers nationwide, and we can quickly respond to flux, linking you to resources without any added risk.
Save time, Resources, and Money – Partnering with Taylor, is like having a dedicated shipping department without the expense of your own department. Using our freight brokerage allows you to focus on your core business.
It’s a Partnership – Taylor works for you, we put our customer’s interests first, because when you succeed, and your business grows, so does ours.
Technology – We have invested in the latest technologies to improve our customer relationships, efficiency, and processes. Our technologies include:
Many merchants don’t necessarily have a physical shop to store their products, requiring the use of a warehouse to store them. Normally, 3PL companies will be able to provide warehousing services that include either a shared or dedicated warehouse for storage, along with all of the required technology to handle and transport products throughout the warehouse. Because of the many companies that might use the same warehouse for storage, you can save money with a split overhead cost.
2. Order Fulfillment Businesses
need to be able to fulfill orders effectively, or they can’t survive. Unfortunately, many e-commerce companies often suffer from invalid order fulfillment, but a 3PL service provider can make sure that customers receive the right goods on time and in good condition with every order.
Another service that most 3PL companies offer is consolidation, wherein e-commerce suppliers send small goods to the same location, consolidating these goods into a single shipment to lower prices.
4. Supply Chain Management Services
To make each order a success, companies need to effectively maintain their supply chain. A 3PL company can help manage all or part of your supply chain, taking care of your inbound freight delivery specifications.