6 benefits of using Third-Party Logistics (3PL)
What is a 3PL?
A 3PL – short for third-party logistics – are used within the logistics and supply-chain industry to outsource either part or all of a business’ distribution services.
These can include:
- Dedicated transportation contracting
- Transportation procurement
- Inventory management
- Logistics management and consulting
- Freight audit and consulting
- Shipment tracking and tracing
- Reverse logistics (returns) and value added services
Benefits of using 3PL?
1. Market Expansion:
A key advantage of using a 3PL provider is that you can start to establish your supply chain in markets that you don’t currently have a strong presence in. Having the ability to focus on new areas without the initial need to spend money on equipment, warehousing, and addition labour gives your business the opportunity to better meet the needs of your customers.
2. Save Time & Money:
Using a 3PL partner makes perfect sense when it comes to saving time and reducing costs. Taking away the everyday stress of logistical problems you can use that freedom to focus on taking your business to new heights.
3. Leverage a Global Reach:
One of the biggest struggles faced by the logistics industry is operating a warehouse in another country with different currency, laws, and regulations. Partnering with a 3PL that has facilities across the globe will improve customer service, cut costs and reduce shipping time.
4. Business Growth:
Putting your logistics in the hands of a 3PL provider gives you the opportunity to really grow your business forward. Once your business grows to the next level, you know that you already have in place the resources and expertise that you’ll need.
5. Keep up with Demand:
As your business grows, there is going to be a greater demand from your customers. Using a 3PL provider ensures that you are ready to meet your customer needs and maintain your streak of high quality service.
6. Work with the Experts:
3PL’s are experts in distribution, so using them means they can provide a high quality standard of work on your behalf to your customers. They have the expertise to fulfil orders more accurately and spot potential mistakes you could have missed which would have led to delays and/or extra charges.
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