Third-party logistics, also known as 3PL, is a helpful service that enables its users to outsource logistics from beginning to end, from warehousing through to delivery, and sequentially allows them to focus on other parts of their businesses. Any 3PL provider offers a wide array of services that have to do with the logistics themselves of a certain supply chain. Some of the services include, as previously mentioned, warehousing and delivery, but also include picking and packing shipments, inventory forecasting, freight forwarding as well as order fulfillment.
Getting goods to merchants and customers involves a lot more than delivering a truckload or a shipment. 3PL companies must carefully manage and coordinate many people and processes to ensure both merchants and customers receive their goods on time and in good condition and that the company they are working for is receiving a competitive advantage.
Logistics management provides a large number of benefits for its users. It improves global capabilities by having a vast knowledge of local markets, government agencies, and comprehension of capacity constraints; it helps reduce costs by helping manufacturers maneuver more material with fewer assets while meeting customer requirements at the same time. It also enhances security because of its ability to provide insight into more effective practices to enhance security policies and procedures. Additionally, it provides comprehensive and efficient logistics solutions when faced with complex supply chain logistics.
Any successful leader should acknowledge the crucial competitive advantage that effectively organized logistics present. Implementing a seamless logistics process in your work is key to keeping up with customer demands and outperforming competitors. Regardless of your company’s size, it would be best if you always strived to grow and expand. That probably means exploring and expanding on a regional, international, or even global trade level. Whichever goal you have your eyes set on, logistics can only help by cutting on the costs and time you spend to move your products from the first to the last point.
However, it would be best to keep in mind that supply chains are quite complex and sensitive. They wholly depend on forever-changing customer demands, and a supply chain cannot ensure high value if it is without effective transportation management. For this reason, the logistics manager is one of the most crucial players in the quality of any supply chain.
When you look at transportation management done right, you may think that it seems simple. However, it actually requires a lot of specialized knowledge, skills, and professional logistics management to make it look so effortless. Don’t let the good-looking result of efficient logistics fool you – it takes a lot of effort and specialized assistance to get the logistics process to flow so smoothly. An effective transportation management system improves a supply chain by decreasing or fully avoiding waste of materials and time. This kind of system aids supply chain professionals in transporting the products and timely delivering them to the right location – which should be a priority for any successful business and distribution service.
In the past decade or so, different types of industries have been booming. Due to the nature of today’s fast-paced setting, companies started relying on 3PL services to ensure that their services are immaculate and that their customers are satisfied.
Here is a breakdown of some of the industries that might benefit from third-party logistics companies.
Food and Beverage
Food and beverage products have a complex process for proper storage and transportation locally and internationally, which is one reason why companies decide to outsource these tasks to qualified distribution services. Third-party logistics can provide food and beverage industries with dry storage, pest control measures, inventory management, quality control, personalized warehouse storage, and prompt delivery to companies.
Retailers exporting their products abroad face many obstacles such as tax, tariff, and import laws. Establishing an isolated international shipping department requires a lot of preparation, education, and possible certification of staff members, which is a liability that companies would much rather avoid. Hiring an experienced third-party logistics provider offers businesses cheaper and more effective handling of products due to accuracy being transferred to the shipper.
Due to the increase in competition in the retail market, retailers find it very challenging to manage their supply chains aptly. Factually, a rhythmic retail supply chain strategy is one of the most fundamental parts when it comes to their customers having a positive experience. Due to those reasons, retail companies seek the ability to reach the golden standard of order fulfillment and speedy delivery. Hiring a third-party logistics partner will give companies a competitive advantage because it will provide them with an existing network that will allow businesses to scale up their domestic area into the global trade rapidly. They’ll be agile enough to match demand with a steady supply flow without the distress of the how’s and where’s. Also, logistics companies are surely equipped with an array of warehouses to service their clients. That was proven to be cost-efficient for retail companies since they’d be able to bypass overhead infrastructure costs that come with bar-code generation and other stock tracking mechanisms.
Startup and eCommerce Business
Logistics companies are often in possession of large carrier networks and offer several transportation modes. In small companies, less-than-truckload (LTL) shipping would be a great solution for their time and budget. Third-party logistics can also provide such small businesses with consolidation programs to move goods in the best and most practical, cost-effective way. Moreover, a third-party logistics company can help keep the workforce lean, as they can aid with workforce strategies that will ensure that companies could focus their energy on enlarging their startups instead of the logistics. Also, eCommerce businesses can enjoy a distribution network that will help them stay close to their customers.
Leveraging a logistics management company due to their operational and process expertise is quite helpful in the hotel industry. It can assist its users with reducing costs and delivering high-quality services to its guests. Hotels can gain complete transparency on their shipments in route, the goods they have in storage, and deliveries on site. Since hotels are constantly expanding into new territories, domestic and international, third-party logistics providers can make sure that hotels can expand their roots into new markets without the burden of major risks that come with large and heavy investments in local warehouses or staff.
Pharmaceuticals and Healthcare
When it comes to healthcare, lives are on the line quite literally when it comes to instruments and samples being moved from one place to another. A vast majority of these items should be carefully shipped to prevent mishaps such as breakage or spillage. Some medical samples must be carefully controlled in terms of humidity and temperature. Furthermore, in similarity to the medical industry, pharmaceutical industries also rely on expedited shipping that can require integrity protection. Moving shipments of insulin, for example, or any other refrigerated medication asks for strict temperature control throughout the entire operation. Companies in third-party logistics and freight forwarders can provide storage and transportation to these industries with precise environment control, which ensures samples are delivered to their destinations without any problems.
Third-party logistics companies such as RedBird Logistics Services provide their users with expertise, a streamlined supply chain, and they can save companies time and money. Businesses trusting these providers with their logistics management are definitely going to make a difference in the way their companies function and allow them to focus on increasing their overall value to their loyal customers. In case you are interested in streamlining your supply chain and ensuring your business is functioning as smoothly as possible, do not hesitate to contact us and get your quote today.