For many companies, choosing between an in-house logistics department and a third party logistics provider can be time-consuming and confusing. Companies like Langham can help you make an informed decision by sharing potential benefits of outsourcing to a 3PL provider. Though there are many more, here are 5 advantages to outsourcing your supply chain needs:
Save Time and Money
Building an in-house logistics department means investing in a warehouse, technology, transportation and staff to execute your comprehensive logistics plan. Experienced 3PL providers can minimize costly mistakes and allow your business to build a global logistics network with lower overhead risk and higher return.
Benefit from Established Relationships
3PLs have access to a vast network of resources to meet business’ needs that create advantages over in-house logistics operations. They have the connections necessary to navigate logistics roadblocks quickly and effectively.
3PLs can leverage their relationships to provide volume discounts and faster service to benefit their clients. Choosing their vast network often reduces overhead and creates opportunities to improve your return on investment.
Capacity fluctuates. A lot. Depending upon the state of your industry, time of year, truck driver shortage or unforeseen fads and trends, your carrier capacity will ebb and flow. Your business can gain access to thousands of carriers with a comprehensive logistics plan created by a third-party logistics provider.
3PL providers also have strategically placed warehouse facilities to quickly ship your goods anywhere in the world. Their resources create opportunities to seamlessly support growth to new markets across the nation and around the globe.
Reduce Your Risk
To select carriers on your own, you’ll need to examine their operating authority, insurance information and safety ratings. However, 3PL-approved carriers will be routinely checked for compliance with standard logistics safety regulations.
By having a team of experts who specialize in supply chain management, you can rest assured that your products will deliver on time no matter the size, shape, time or place. That way, you can focus on your business’ revenue building instead of your supply chain transportation challenges.
3PL providers have the resources and incentive to update and optimize processes by evaluating and improving each link in your supply chain. Professionals work to ensure this by using the fastest, most efficient and cost-effective logistics methods and technology available.
Sophisticated logistics management software and Six Sigma methodology can monitor and analyze your supply chain to eliminate inefficiencies and bottlenecks. These improvements strive to bring your supply chain to an average of 3.4 defects per million deliveries. With such a high standard, 3PL providers are sure to bring you more supply chain efficiency.
Ultimately, third-party logistics providers have the capability and responsibility to maximize profits, reduce wait times and improve customer service. For more information on how 3PL can maximize benefits for your business, read about 3PL and your long-term business strategies.