What Are The Benefits Of Working With A 3PL Provider?

Redbird Logistics Services > Supply Chain > What Are The Benefits Of Working With A 3PL Provider?
What Are The Benefits Of Working With A 3PL Provider

Third-party logistics providers can provide a business with many advantages, the main advantage being to focus on other aspects of your business. Things such as sales, marketing, and product development will be a lot easier to accomplish, as you will have more time and resources to work on them.

Clients have their standards and expect either same-day or next-day shipping options. Therefore, by using 3PL services, you will have access to fast shipping regardless of where the order is being sent. All of this is due to the 3PLs vast distribution network.

By using this service, you’ll make use of a supply chain built for the best organization since your 3PL logistics network will keep a consistent pace with you and your business every step of the way.

Cost Reduction

One of the many things that 3PL providers have is a better connection with freight companies, unlike most individual shippers. 3PLs will negotiate prices, as well as work with the delivery personnel on behalf of multiple customers. The price negotiation would be based on the order frequency, as well as volume and general demand. By investing in a 3PL provider, as mentioned above, you will have more time and freedom to invest in other areas of your business to make it grow and develop faster.

Besides the freedom and the time you’ll gain by working with 3PL companies, you will also notice a significant cost difference. One of the main reasons so many companies work with 3PL providers and keep working with them later on is the considerable cost savings 3PL providers can offer.

Over a 3PL provider, you’ll be able to see precise and consistent reductions in transportation and various logistics services. Along with that, 3PL providers are very skilled when it comes to cost savings, carrier selection, and more methodical routing. Therefore, with these types of providers, you’ll no longer need to focus on hiring people, investing in equipment and facilities, or anything that you might need to operate your supply chain.

Cost Savings

Aside from the obvious cost savings, not having to constantly maintain your staff and space all by yourself is also a big reason why 3PL services are here to help. When it comes to proper warehousing, 3PLs provide suitable storage spaces for your goods and save money on the inventory costs.

By hiring a 3PL company, you’ll be able to manage and analyze your best and lowest business points more effectively, as most businesses experience fluctuations during the year. This way, you won’t need to commit to managing your resources and funds more than required.

Depending on your business’s size and needs, there are plenty of different 3PL services you can choose from that can meet those standards. Since, if you plan on or are already operating your shipping and distribution systems in-house, and you are looking into expanding that part of your business, you’ll need to invest into facilities, the labor, as well as the equipment necessary to make all of that happen. 3PL logistics companies provide all of these services, cost less, and therefore you’ll have access to a pool of various resources you’ll need as new challenges for your business arise.

Presuming that there might be a busy season for your business, perhaps even rapid growth, you’ll also have the option for expanding your shipping and distribution capabilities through 3PL companies, allowing you to operate more flexibly.

Mitigate Risk

Small or big, every business owner needs a team that they can trust, that can get the job done, avoid any problems that might arise and risks that may impact a business’s operation.

Many shipping delays can happen, and most likely will, due to a variety of reasons. Unforeseen circumstances can pop up at any point in time, and it’s where 3PL jumps to the rescue. Being tasked with making arrangements to process and finish your orders as quickly as possible is the 3PL provider’s responsibility. Along with that, you will also be protected if any damage or loss of goods occurs. Being able to balance your supply chains, no matter what type of natural disasters or other unpredictable events might happen is simply one of the many capabilities of a 3PL provider.

Your logistics provider will strive to strengthen their relationships with various suppliers to make sure you continue to get the parts you need for your business, as well as raw materials and other items you might need. This is especially useful when your leading suppliers raise their prices or even become unavailable at the very worst.

The supply chain is the core competency for logistic providers. Along with that, successful risk management can rarely be done by just one individual and, as well as being proactive, not reactive.

However, if a business owner doesn’t have the funds to hire an entire 3PL team, they would still have the option to hire them for a shorter period of time. During this period, the 3PL provider will help the business owner to find lower-priced spaces, such as older properties in secondary markets.

Expertise and Knowledge

Supposing that you are just starting, the best option for you, in that case, would be to find an excellent logistic company to help yourself out. Logistic companies specialize in fulfillment, warehousing, and shipping, which are all already a significant problem to deal with if you’re starting with your business.

Aside from handling more complicated tasks, 3PL companies will also help you learn many things along the way. Eventually, you’ll be able to stand up on your own two feet and manage everything yourself. It’s all about the experience and what you pick up along your business journey. Your business will grow and develop faster than before, with each month and year, and in the end, you’ll be able to have time to focus on increasing the overall value to your customers.

The 3PL industry has a tremendous amount of information and knowledge about the transportation industry, as well as established relationships with a variety of partners throughout Industries. This way, by working with a 3PL company, you will be able to gain access to the transportation network.

Test Out New Markets

If your company sells a variety of items internationally, 3PL providers will be able to take care of almost all of the customs, documentation, duties, and plenty of other issues that will arise along the way once the company goods arrive at the borders. In the case that problems at the border come up and it’s not done thoroughly, it can delay your shipments and therefore result in high costs. By working with a Logistic Company, along with the company dealing with these types of problems, it also saves you time, as it is trying to work out different, more complicated rules and laws from different countries.

International 3PLs have the flexibility to test the waters in new markets without committing to any bigger investment, such as warehousing or building up your staff.

Once you’re ready to expand your business, with the help of 3PL providers, you will be able to seamlessly grow and spread into new territories without worrying about your transportation infrastructure being able to follow suit. Logistics Providers will provide you with access to distribution centers close to key markets. As well, of course, you can avoid warehousing through the 3PL provider, which will show obvious, significant cost savings.

Work With the Professionals

If you’re looking into expanding your business on an international level, it will require knowledge of global fulfillment networks. The process of international orders requires accounting and documentation for customs and duties. Once these responsibilities are outsourced, it will make cross-border selling a lot easier. Along with that, it can also improve customer satisfaction, advance delivery times, and reduce shipping costs.

On the other hand, renting out a warehouse and hiring a fulfillment team will increase your business efficiency. Managing and maintaining fulfillment assets can be very costly. However, working with a 3PL provider can minimize those costs, making it so that the capital can be directed toward possible return-generating endeavors.

3PL Advantages Today

Even with the current global virus situation with many 3PL employees working from home, 3PL services are still working as well as ever. Along with that, warehouse automation has been shoved into the spotlight as the main differentiator.

Although the global pandemic is more manageable nowadays, most services 3PL companies offered before are still available. Many 3PLs will automate fulfillment instead of you. Therefore you will be able to spend time growing your business, whether it be from home or an office.

RedBird Logistics is here to help you with any logistics solutions you may need. Contact them today and make sure your supply chain is as efficient and as cost-effective as it can be!

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