Advantages Of Outsourcing Logistics To A 3PL Provider

Business organizations have to increase their area of operations in order to expand and grow. This means that they have to venture into new markets, and add new customers. With the world becoming a global village, present day businesses have customers spread throughout the world. To supply products to customers at various geographical locations, companies must deice whether to have in-house logistics or outsource then function to 3PL providers.

Who is a 3PL Provider?

3PL or 3rd party logistics provider are companies that provide logistics solutions to business organizations. The services of a 3PL company can include all or some parts of the supply chain management and shipping operations. Some services offered by 3PL companies include

  • Transportation including FTL Dedicated truckload freight, LTL Less Than Truckload freight and other services
  • Warehousing
  • Inventory management
  • Materials procurement
  • Customs brokerage
  • Shipment tracking and order fulfilment

Advantages of Outsourcing Logistics to a 3PL Provider

Outsourcing logistics to 3PL companies helps business organizations to have access to the latest technology and expertise of the 3PL provider. Here are some other benefits of outsourcing logistics.

  • Scalability

As a business organization grows and expands, so do its needs and requirements. 3PL providers offer scalable solutions to suit the unique requirements of their clients. Manufacturers, vendors and traders can have access to customized logistical solutions that are scalable and provide enhanced growth opportunities.

  • Saves Time and Costs

Handling Logistics operations needs a certain level of efficiency and expertise. 3PL providers aid companies to reduce the time and costs invested in developing a logistics department and manage it. They provide business organizations access to the latest technologies in logistics management without having to invest in them. Moreover, outsourcing the logistics function helps businesses to concentrate to other strategic areas of business development.

  • Enables Expansion

Outsourcing logistics to 3PL companies helps businesses to expand to new territories. These companies have operations across various geographical locations either through their own network or partner networks.

Owing to these advantages many companies prefer to outsource their logistics to 3PL providers. However, it is important to choose the right provider to suit your requirements. For example, if you are planning tom hire a 3PL for transportation of your huge shipment, hire a trucking company that provides FTL dedicated truckload freight services in the areas of your operations. Choose a reliable and reputed 3PL provider and always compare the costs and services of different providers before finalizing one.

Share Button