4 Reasons Why a Third Party Logistics Company (3PL) is Critical to your Long Term Business Strategy
The marketplace is overflowing with 3PL, distribution, fulfillment, and supply chain providers. This abundance of options causes the partner selection process to be quite confusing and complex. Regardless of the abundance of choices, one fact is indisputable: 3PL providers are a powerful extension of your business. These companies provide more than just a quick solution to your immediate shipping needs, they can offer expertise and innovation that fulfill not only your tactical logistics needs, but also help you reach your long term company goals by providing visibility and supply chain services that boost your bottom line.
Let’s take a look at how a 3PL can become a major asset to your business.
Practice makes perfect. 3PL companies often have not just years of experience, but decades. They have dedicated themselves and their businesses to solving supply chain and shipping problems by building tailored solutions to the ever changing complications of their customers business. Having this expert focus allows you to maximize your business’s resources, time and money in particular, to focus on your core competencies and goals.
Resources & Capabilities
Established 3PL, those that have been in the industry for over 20 years, have the distinct advantage of long term global partnerships. They have access to high-quality resources and unique capabilities and expertise because they have spent many years building these relationships, which provide opportunities for lean solutions and cost savings. They can lower your overhead and help you avoid the pitfalls that are common in logistics and supply chain management.
Flexibility & Adaptability
In order to have a successful and manageable supply chain, it’s imperative to be flexible enough to adapt to a constantly changing marketplace and your client’s business fluctuations. From seasonal volume instabilities to expanding or tightening deadlines, a 3PL can help by streamlining the supply chain and making it more efficient and effective. Many 3PL providers also offer 24/7 access along with on-site staffing so help smooth the ebbs and flows of product volume and seasonality. When the going gets tough; your 3PL will get going.
3PLs are known for innovation and creativity. By having the latest technology and keeping up on industry-standard practices and trends, they can bring data and leading edge solutions to your team, reducing your need for internal staffing to be focused on this. As a result, your business moves faster. From delivery to distribution to returns, everything is streamlined, resulting in much more robust and effective process.
Since the beginning of the industrial age, strong and trusting partnerships have been an essential strategy that have helped many businesses be successful, especially in a global economy. Whether it is Steve Wozniak and Steve Jobs, Bill Gates and Paul Allen, or you and your 3PL––the effort that is put into building a lasting business relationship can lead you and your business to greatness.