Logistics is a specialty field of management and, depending on your industry, may be critical to maintaining your business operations. You are often faced with three choices when seeking logistical support:
- Third-party logistics: A business that focuses on managing your supply chain for you.
- In-house logistics: An employee within your business who manages your supply chain.
In-house logistics makes sense for businesses in the delivery and shipping business. Likewise, businesses with extensive supply chains can justify an in-house logistics department. For example, auto manufacturers, delivery companies, and import/export businesses handle their own logistics.
Third-party logistics works best for businesses that have complicated supply chains that require full-time management but prefer not to hire a logistics staff. Examples include specialty manufacturers or manufacturers whose products require special handling.
FTL Shipping Solutions Across Industries: Customer Examples in Third-Party
Truckload Logistics
Here are three examples of customers who use third-party truckload logistics:
Pharmaceutical Companies
One of the benefits of outsourcing logistics is that a company can focus on its core business while leaving supply chain management, transportation, and storage to the logistics experts. For example, pharmaceutical companies require extensive inputs for their manufacturing activities. However, pharmaceutical companies, particularly smaller pharmaceutical companies, would likely prefer to focus on chemistry and biology rather than pharmaceutical logistics.
Outsourcing FTL in transportation to a third party can relieve the pharmaceutical company of coordinating the transportation of chemicals and other manufacturing inputs when they are needed and while they are at their peak of effectiveness.
Food Companies
Food companies operate on very thin margins and have very perishable products. One mistake in truckload shipping can result in the loss of an FTL shipment of products at a cost of many thousands of dollars.
Third-party logistics providers have the experience to schedule shipping for perishable goods. Moreover, logistics providers have the connections to arrange specialty transportation such as refrigerated trucks or expedited trucking for, particularly sensitive shipments.
Likewise, when importing and exporting goods, third-party logistics companies can help manage the customs clearance process. Again, with perishable goods, time is of the essence and any delays crossing an international border can result in major financial losses.
Industrial Machinery
Heavy machinery manufacturers may make very few shipments per year. For example, specialty mining or manufacturing equipment manufacturers may only produce a few hundred machines per year. However, the value of those machines can be enormous due to the time and labor put into them.
Outsourcing logistics makes sense for these types of manufacturers. More so, ensuring the machine arrives undamaged is more critical than negotiating favorable shipping rates.
Third-party logistics offers substantial benefits. As a result, your business often receives better logistics support through outsourcing.