If your business or company ships products, you know that shipping can be a complex undertaking. And if you’re not up to date on the latest logistics and transportation practices, you could spend too much time and resources handling them in-house.
To solve this challenge, many businesses turn to third-party logistics (3PL) companies for help managing their shipment needs. This allows them to focus on what they do best and guarantee that their goods get delivered on time and in perfect condition.
If your business isn’t already using 3PL services, seven reasons will make you hire the best 3PL logistics company right away. Let’s explore these reasons.
What Is a 3PL?
A third-party logistics (3PL) service is a logistics service outsourced to a third party. A 3PL will take over the responsibility for your company’s inventory and supply chain management needs, leaving you to focus on your core competencies.
In other words, after choosing a 3PL provider and handing off control of your transportation processes, they handle all aspects of moving products from point A to point B within their system as efficiently as possible.
Get Faster Delivery Times With 3PL Logistics
You may be surprised to hear that 3PL services can get your shipments there faster if you’re shipping directly. Many businesses have grown to rely on third-party logistics providers for their distribution needs because these companies have invested in the latest technologies and used them to their advantage. These include:
Automated systems can track packages in real-time, providing critical information about delivery times, locations and tracking numbers. This allows customers to receive updates as needed and makes it easy for them to communicate with their clients or customers if they need more information regarding the status of their shipment.
The modern computer software uses algorithms to optimize routes based on current traffic conditions so that drivers are not stuck waiting at lights or, worse yet, running red lights!
New trucks are equipped with gadgets like cameras and Wi-Fi hotspots so drivers can stay connected while on the road, ensuring they get where they need without wasting too much time sitting around waiting at rest areas (which often don’t even exist anymore!).
Focus on What You Do Best
The first reason to use a 3PL is to focus on what you do best. Suppose your business has been around long enough. In that case, there are probably some aspects of running it that have become mundane or even downright boring for you—things like logistics, customer service, shipping, warehousing and returns. These aren’t the exciting parts of running a business—they’re just things that need to be done for your company to function correctly.
What’s more exciting? Selling great products or services from the people who make them! Do you know all those wonderful items being sold by Amazon? They didn’t invent them themselves; they simply provide an outlet where countless entrepreneurs can sell their products directly to customers without worrying about any other logistics involving getting those items into buyers’ hands (or even finding buyers).
Get an Advantage Over Your Competitors
You can use 3PL services to gain an advantage over your competitors by improving customer service, saving money, and growing your business. You might not understand how 3PL services could help you win more business, but they can.
- When you have a better customer experience than your competitors, customers will return to you every time. Your reputation will also grow stronger as more people learn about how you go above and beyond for them.
- You can save money using 3PL services because they reduce the time it takes for shipments to reach their destinations. This means that less gas is used up transporting goods from one place to another, which helps keep costs down for both businesses and consumers alike.
- 3PLs grow companies’ revenue streams depending on your company’s needs; however, there are two critical ways this happens: either by selling products directly or by selling services related (or unrelated) products through channels such as Amazon Marketplace or eBay Marketplace!
These are the three significant ways 3PL helps you stay ahead of your competitors.
Mitigate Risk of Supply Chain Disruption
When it comes to mitigating risk, planning is imperative. Suppose you have a backup plan for when things go wrong and are proactive in planning for unexpected expenses. In that case, you’ll be better able to maintain healthy relationships with suppliers and customers. You should also consider minimizing outside factors that can impact your business.
It’s easier than ever before for third parties such as 3PLs (third-party logistics providers) or freight brokers to work together to ensure that products arrive on time at their destination without any hassle or issues from either party involved way.
Gain Experience to Improve Your Business
By using an expert 3PL service, you can learn from the experts. You will have access to a team of professionals who have been doing this for years and are more than happy to share their knowledge with you. They will guide new trends in the industry and give feedback on how they would improve your processes. This is also true for any new technology that becomes available or any other changes that need to be made within your business.
You can find out what other companies are doing in supply chain management (SCM) by working with a third-party logistics company (3PL). You may find out about new technologies or techniques that could improve your operations, which means that if you do implement them, they won’t feel like such a leap into uncharted territory anymore!
Create a Positive Customer Experience
The most important thing for your company is to create a positive customer experience. It’s also one of the hardest things to get right. There will always be problems with orders and shipments, returns, and shipping delays as much as you try.
3PL logistics services can help you mitigate these issues by taking care of all the details involved in shipping products and delivering them on time. You can then focus on providing better customer service than your competitors do—which will give you an edge over them in plenty of ways:
- Your customers will have fewer reasons to go elsewhere because they won’t have anything outstanding against them (like late deliveries).
- Your customers will trust that they won’t have any issues if they ever need another product from your company again (because their last one was delivered on time).
Get Better Quality Services at Affordable Prices
When it comes to quality, 3PL services are the way to go. Not only do 3PLs help you create a cost-effective business model, but they also offer customized solutions that are scalable to your business needs. They’re flexible enough for you to change and grow with them.
Plus, when something goes wrong with a shipment—and let’s be real, they always do—you don’t have to worry about managing an entire team of employees: 3PLs provide timely support when needed.
3PLs can help businesses with trouble managing their logistics, especially those dealing with unprecedented growth or other significant changes. They can also come in handy during times of disruption, providing your business with reliable services, so you don’t have to worry about meeting your customers’ needs.
Of course, you must do your research and find the right 3PL for your needs. But if you take the time to find someone who fits your business, using a 3PL could prove especially beneficial for companies looking to improve their supply chain management while also boosting sales and profits.