Third party logistics companies or 3PL have revolutionized the way supply chains function. Businesses of all sizes have been using such services to streamline their supply processes and focus on improving other aspects of their operations.
If you are interested in learning about the numerous benefits that a 3PL company offers for business, you are in the right place. We have compiled a list of 5 ways that using a 3PL company can benefit your supply chain.
5 Ways That Using a 3PL Company Can Benefit Your Supply Chain
1. Saving Costs
Business owners are always looking for ways to make different operational processes more cost-effective. They might restructure different departments or hire part-time staff to maximize productivity in a given period. However, this can be complicated and requires plenty of planning. The good news is that it is possible to make your supply chain more cost-effective simply by hiring a 3PL company.
As their name implies, third party logistics companies focus primarily on logistics. They typically maintain a large staff network and have deals with different businesses in the logistics sector. This means they often have long-term relationships with different service providers and are therefore able to secure better deals than smaller businesses are able to secure.
For example, a 3PL company hired by multiple businesses has access to discounts offered only to high volume businesses. They can therefore offer services at cheaper rates than each business would be able to secure individually. Businesses who hire such 3PL companies can then benefit from these discounted rates.
For this reason, the average business can reduce their overhead costs significantly by hiring a 3PL company to manage their supply chain.
2. Division of Duties
Many business owners also opt to hire 3PL companies because they understand supply chains. This benefit becomes especially apparent for small business owners that attempt to manage their supply chains themselves.
Such business owners quickly learn that their seemingly supply chain contains many processes that must be supervised at all times. They could hire additional staff to oversee their operations but they may still run into issues if a knowledgeable and experienced individual isn’t at the helm.
Hiring a 3PL company is a great decision because they employ staff members with experience in supply chain management. They have managers who understand the ins and outs of the different processes and can troubleshoot problems with minimal disruptions to their operations.
Business owners can save themselves plenty of stress by hiring a 3PL company and focus on other aspects of their operations such as manufacturing, retail, and customer management.
3. Greater Flexibility
One of the biggest advantages of hiring a 3PL company is the flexibility they provide. Growing businesses must be willing and able to match their supply with incoming demand from customers if they will to maximize their profits. However, this can be difficult for a small business with limited staff.
Such businesses may struggle to fulfill a large number of orders on short notice, or even special orders around the holiday season. The company’s hiring manager may then need to hire part-time staff to make up for the additional capacity they require, but this process can be costly and time-consuming.
Businesses can avoid such issues by hiring a 3PL company. Third party logistics companies employ a large number of staff members and can adjust their services depending on the client business’s needs. This means they can scale up operations to fulfill an unusually large order or meet the demand around the holiday season.
Many 3PL companies also offer flexible contracts so businesses can scale up or scale down their operations as required without having to lock into a potentially costly commitment. This can be advantageous for smaller businesses that wish to compete with larger ones without having to take costly risks.
4. Expanding to New Markets
3PL companies also offer businesses additional capabilities. This includes being able to expand to new markets easily.
For example, a business may be interested in offering their products internationally. However, they may lack the resources and infrastructure required to fulfill global orders. Such businesses can work around this issue by hiring a 3PL company to handle global orders.
This allows the business to expand its capabilities and reach its full potential. In this regard, hiring a 3PL company may be vital for a business’s continual expansion and growth into new markets.
5. Better Customer Service
Offering great customer service is essential for any growing business that wishes to compete with others in its industry. After all, a business that can’t compete in terms of affordability or product quality may still be able to win over customers by offering excellent service.
You may be surprised to learn that hiring a 3PL company to manage your supply chain can lead to improved customer service. A professional 3PL company with a good reputation will be able to fulfill customer orders with minimal delays or disruptions. This means the company’s consistency and excellent service will be viewed as your own business’s consistency and excellent service.
Some business owners can also use the time saved from hiring a 3PL company to focus on improving their company’s customer service department, leading to further improvements in the way customers perceive their brand.
Choosing the Right 3PL Company for Your Needs
Business owners interested in hiring a 3PL company to handle their supply chain can’t go wrong by choosing 3PL Bridge. We serve businesses of different sizes and strive to always provide high-quality services for our clients.
We understand the vital role that supply-chains play in your operations and are committed to offering consistent services that you and your customers can rely on. Please contact us to learn more about our services.