How Third-Party Logistics Can Improve Your Supply Chain

How Third-Party Logistics Can Improve Your Supply Chain
How Third-Party Logistics Can Improve Your Supply Chain

Supply chain management is an oft-overlooked aspect of running a business that can make or break your company. Maintaining a supply chain that is both modern and efficient can be a challenge for even the most experienced companies. This has taken on increased importance as the world has moved from traditional brick-and-mortar stores to conducting business and making purchases in the digital realm.

For this reason, third-party logistics companies enjoy a growing impact on the shipping and freight industries. Finding the right one to help you navigate in this increasingly complex world will allow you to focus on the other pressing aspects of your company. Here is how third-party logistics can improve your supply chain and grow your business.

Save You Money

In the world of business, as the saying goes, time is money. Creating, building, and monitoring a supply chain are all things that cut into this precious commodity, keeping you from the day-to-day running of your company. Hiring the right logistics company to manage your supply chain can help provide time to focus on the other aspects of your growing business.

Part of the challenge of expanding a business can be getting your products to your customers. Setting up a network for storage and delivery can be a big hurdle to clear, especially for smaller companies. A major benefit of partnering with Diversified Transportation Services is that you can take advantage of the infrastructure that we already have in place. By not being responsible for transporting and storing your product, you save money in labor because you do not have to hire people to plan, implement, and run the transportation of your products. You also are not responsible for paying for the entire fulfillment centers where all your inventory is stored.

Along with this infrastructure, having a relationship with a company that deals with third-party freight helps to drive down costs with vendors. Because of the size and reach of third-party logistics companies, there are likely deals and agreements in place to save money for our partners from volume discounts. This is also true with shipping costs. Many companies offer a discount on shipping if contracted for higher quantities. This symbiotic relationship between the third-party logistics and freight companies allows smaller outfits to experience all of the benefits that come with being a larger company. It also means that they are better able to compete for customers in the wider digital world.

Help Manage Your Inventory

Managing inventory can be a challenge for any company. Everything from materials and production to storage and freight must be accounted for. It can be hard to make sure that you have enough supplies for your products. With third-party logistics, you can know when your supplies are running low and when to order more. By being more aware of your ordering habits, you can better predict when you should be ordering more inventory and supplies so you can avoid spending time waiting.

Another challenge that is solved with a third-party logistics company is what to do with your inventory of products. In previous generations, companies would have to purchase an entire warehouse or rent out space within it even if they used only a small portion of it. This can be problematic, especially if there is no inventory. By only paying for the space that you are actively using, you are better able to spend your resources elsewhere.

It also allows you to have your inventory spread out across multiple locations. While this might seem like it would be detrimental, the opposite is true because your customers will not have to wait as long to get their products. Having inventory stored in multiple locations can also help in recovery in the event of a disaster. If the warehouse you own that houses all your inventory is suddenly destroyed, it can mean the end of your business. But having your products spread out can minimize this risk.

Package fulfillment and freight delivery are critical to the continued success of most businesses today. Partnering with the right company to handle all of your business’s freight and shipping needs can take all the guesswork out of your supply chain. Diversified Transportation Services has the experience to help navigate the complicated world of shipping regulations and the connections to handle everything from standard parcels up to international shipping and freight.

Staying Adaptable

A key advantage that small businesses can have over large corporations is the ability to be dynamic. While a big company might have the luxury of making their adjustments at a glacial pace in response to changing market conditions, you and your company must be able to make changes in real-time. This is where Diversified Transportation Services comes in. We can pinpoint changes as they happen and help you make the proper adjustments.

One example of this is the ability to quickly scale production to meet current customer demand. If a product that you produce suddenly becomes a market leader, you will need to ramp up assembly to keep up with the new orders. On the other hand, if there is a sudden decrease in the demand for your product, you will need to be able to scale things down to avoid inventory sitting unused.

But being able to quickly adjust the scale of production is not the only advantage of a dynamic supply chain. It also better allows you to move your inventory to where it is more likely to sell. The right third-party logistics management company can help to get your products to the storage facilities nearest to your customers.

Running your own business is hard. And it can be difficult to determine the best logistics options. Contact Diversified Transportation Services today to see how third-party logistics can improve the supply chain for you and your company. By offering a wide range of services and having long-established relationships with a multitude of shipping, storage, and fulfillment providers, we are able to pass our savings on to you so that you can reinvest where it is needed the most.

How Third-Party Logistics Can Improve Your Supply Chain

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