Third-party logistics, or 3PL, providers are specialist companies that offer their customers many transport service, such as LTL, Truckload, Tradeshow, Expedited, International Air Freight and Ocean container imports and exports as well as other related services, such as distribution and storage solutions. They also help companies with fulfillment services such as picking, packing, and shipping. Some businesses can handle their own transport services, but they usually outsource these operations to 3PL providers to enjoy a host of benefits. Here are three ways that 3PL benefits freight transportation services.
The first way that 3PL can benefit your freight transportation services is that it saves time and money. This is arguably the top reason for using a 3PL provider. A company might be able to handle everything in house, but it’ll save a lot of time by outsourcing its supply chain operations. A good 3PL provider can take all the supply chain workload, freeing up time and staff. This allows the staff to focus on the core business.
These 3PL firms also save costs, since a company won’t need supply chain staff when the function is outsourced. This translates to lower salary and related personnel costs. A professional 3PL provider will also ensure fewer logistical mistakes, resulting in huge costs savings in rectifying mistakes such as delays and goods damaged during transportation.
Managing expenses is as important to many businesses as lowering costs. Supply chain issues can easily drive costs out of control. Small delays can attract huge storage costs, and idle warehouse space and trucks can attract avoidable expenses. A 3PL provider can handle all the supply chain and logistical operations of a company, ensuring that costs remain predictable and fixed regardless of many factors.
A third-party logistics provider will also optimize operations, ensuring that the supply chain is functioning perfectly. Simple changes such as using the latest technologies and techniques can eliminate operational inefficiencies. Since 3PL providers are always implementing best industry practices, you’re bound to have a smoother operation. Operational efficiencies have direct and indirect benefits ranging from improved staff morale to better customer reviews and a better bottom line.
If you need an unmatched third-party logistics provider that offers freight transport services domestically and internationally, consider Diversified Transportation Services with their 31 years of history taking care of its clients overall needs.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.