Transport services provided by a 3PL can have many benefits. Regardless of the size of your business, the benefits should be taken into consideration nevertheless. Partnering with a 3PL can help shippers reduce costs on many aspects of transport services. It can also make transport more efficient and improve customer satisfaction. In this article we shall cover the benefits that a 3PL can provide shippers and some of the advantages that any business involved in transport logistics should know. A 3PL can alleviate the headache of transport and give a business it’s time back to focus more on marketing, growth, and customer relations. All while your partnered 3PL handles the logistics.
What is Third Party Logistics?
Third party logistics (3PL) refers to a company that handles some or all parts of an organisations logistics. Companies will outsource their logistics to a 3PL. These services can include transport logistics, fulfilment, warehousing, storage, and much more.
Advantages Outsourcing Transport Services to a 3PL
1. Cost Savings
Arguably one of the most important advantages a 3PL can offer is saving the organisations that utilise it money. This is usually a guarantee because a 3PL is always looking to optimise, improve efficiency, cut costs, and add value to their customers business. 3PL’s are very experienced in leveraging order volumes and frequency to elicit better rates from carriers, all in a bid to reduce transport logistic costs. They are also experienced enough to limit the amount of potential errors creating an environment of low risk high reward.
2. Access to Expertise
Another advantage a 3PL provides is their expertise within the field of transport services. This expertise includes knowledge on import and export, customs international compliance, and shipping regulations. A 3PL will also apply the best industry practices when conducting business whilst also providing the best and most current technology within the transport logistics sector. This ensures your transport is the most efficient it can be.
3. Focus on Core Competencies
Some businesses can be negatively impacted by focusing too much time and resources towards critical but non-core components of the business. Transport logistics can take up an immense amount of time and energy. However, outsourcing this activity to a 3PL can significantly reduce this as they can provide their own man-power and resources and apply them better. Ultimately creating a more efficient and streamlined transport service.
4. Scalability
One of the more important advantages to think about is the ability for business to scale further, whilst utilising the resources of their outsourced 3PL. For example, during high and low seasons, a 3PL has the ability to respond to sudden changes in demand rather quickly. Resources such as transportation, labour, or space can be scaled based on inventory requirements without added risk. A business working with a 3PL also has the ability to leave a footprint on regions other than their own with little to no barriers. A 3PLs logistical support and expertise can aid in expanding domestically and internationally by reducing expensive delays and cycle time. Creating a smooth transition from one area to another.
5. Risk Mitigation
Transport logistics regularly experiences delays, they can happen at any point regardless of prior preparation. A 3PL has an advantage over others because they are well versed in dealing with delays. Not only delays but also damaged products. This is because these risks are a core part of a 3PLs activities. The more product they transport the more likely delays and damaged goods will occur. Most 3PLs that you come across will also have insurance based around delays and damaged goods and this helps them and their clients deal with these unforeseen occurrences.
6. Resource Network
When partnering with a 3PL you will gain access to their resource network. This can be put to good use throughout all stages of your supply chain to enhance transport services. A 3PL with a situated resource network will have interconnected routes to utilise. This can maximise efficiency while shipping their clients freight. This network is especially handy when unexpected challenges arise as solutions can be created quicker.
7. Customer Satisfaction
Each advantage that has been explored throughout this blog all directly impacts customer satisfaction, which is one of the most important advantage a 3PL can guarantee. A 3PL that offers timely pick-ups and drop-offs by qualified drivers will ultimately leave your customer base happy, and ready to repeat business with you.
Conclusion
To conclude, partnering with a 3PL can drastically improve your transport services by cutting down on shipping costs, making transportation process more efficient, and improving overall customer satisfaction. All made possible by a 3PLs industry expertise and resource network. If shipping is a high priority for your business then why not try partnering with a 3PL such as OnLogistics. We can and have been presenting these advantages to many of our customers over the 18 years we have been active. You could be the next one.