Why Should I Use a 3rd Party Logistics Service?

There are many advantages that a company can gain by starting to outsource supply chain management to a 3rd party logistics service (3PL). A 3PL can manage distribution, packing, warehousing and assembly. Through their combined resources and knowledge, they can help to maximize profitability. The utilization of a 3PL also gives companies a logistics advantage that is reliable.

Resource Network

3PLs have a large network available that has many advantages over supply chains that are in-house. By using the resource network of a 3PL, the steps of a supply chain are able to be executed in a cost effective, efficient way. The ability of a 3PL to leverage relationships and volume discounts can result in the fastest service possible and lower overhead. A 3PL gives a company the ability to benefit from many resources that are not available in-house. You can find Nashville Logistics services by looking online.

Save Time and Money

The use of a 3PL eliminates the need to invest in transportation, warehouse space, technology and staff to carry out the logistics process. A 3PL can prevent costly mistakes, allowing your company to build a logistical network on a global scale. This will create lower risk with higher return.

Expertise

3PLs always stay current with all of the latest advances in technology, and they are knowledgeable of the best practices in the industry. 3PL software is capable of inventory management, advanced reporting and it provides the ability to monitor the complete process. Experts in the 3PL field employ practices to make sure the right amount of inventory gets shipped where and when you require it.

The outsourcing of logistics allows your business to focus on all of your core competencies, leaving the experts to deal with the rest. A 3PL will give you piece of mind and confidence because your logistical needs are being taken care of by professionals that are reliable. Many companies provide affordable warehousing services.

Scalability and Flexibility

A key advantage of a 3PL provider is their ability to scale transportation, labor and space according to the needs of your inventory. Companies that have seasonal periods can have stress free transitions from ups and downs in the industry, with the ability to take advantage of more resources and space when they need it.

A 3PL provider can help your company to grow in new locations with no barriers. They have warehouses and distribution centers located in strategic places that allow for fast shipping of products to any location in the world. Decentralized distribution provides faster delivery times at lower costs. 3PL providers have the ability to support and facilitate growth in new markets.

Continuous Optimization

3PL providers have the resources to make improvements and adjustments to each link in the supply chain. They will make sure that all of your needs are met by using the most cost effective, efficient and fastest methods available.

3PLs have the ability to restructure a supply chain. They have technology that makes sure the correct amount of merchandise arrives where and when you want it to. Advanced management software is able to streamline the supply chain, as well as monitor and analyze inefficiencies. Finally, 3PL providers can help improve customer service, reduce wait times and help maximize profits.