How Can Third Party Logistics Company Benefit You?

Posted by alvina on March 30th, 2018

In the past third party logistics operations was a term that was used to differentiate between providers of logistics that enhanced their services by using the internet and those that didn’t. Nowadays with the majority of businesses using online services to improve their business, the term is used to describe businesses using any type of storage or shipping facilities via a third party.

A 3PL logistics service will manage either the majority or all of the company’s logistic requirements via third party logistic operations allowing the company to concentrate on different areas of their business by handing the 3PL logistics needs to the professionals. By using a 3PL logistics service they can ensure that production output meets the needs of customers without having to worry about a thing. Recent studies have shown that more than 65% of shipping companies now use 3PL delivery services.

Benefits of using a 3PL company are plentiful and including saving time as they don’t need to worry about managing their own supply chain. There are also monetary savings to be benefitted from due to the fact that 3PL logistics companies are professionals in their field and can, therefore, avoid costly mistakes that many businesses make.

Using a 3PL logistics can ensure that the supply chain is optimized. They manage to achieve excellent optimization because they are able to modify the connections as and when necessary. This allows companies to benefit from constant improvements in the 3PL delivery process, which of course increases customer satisfaction too!

All companies want to save money where possible without having to reduce any of their goods quality which could also lose them custom. Using third party logistics operations are able to get lower cost transportation rates which can help to reduce the number of goods being returned as well as sales being lost.

Seasonal companies are able to reduce the amount of space they need in their warehouses as well as offer labor and transportation services during the peak times. By utilizing more space it’s easier to ensure the most popular goods are likely to be in stock throughout the season giving prospective customers a better service and experience.

The 3PL logistics services have a lot of expertise which means they already know what the customers want and are able to adapt to those needs easily. They have 3PL delivery technology which means they can quickly find stock in their inventory and provide real time tracking which allows companies to inform their customers of more accurate delivery dates.

3PL logistics providers are not only an add-on service to reduce costs, time and increase customer satisfaction. They also become an extension of the companies’ team to provide a flawless delivery service to improve customer satisfaction and ratings.

A benefit of using a 3PL logistics provider is the ability to scale space, labor, and transportation according to inventory needs. Businesses with seasonal periods can enjoy stress free transitions between industry ups and downs, having the ability to utilize more space and resources when needed.

If you don’t want barriers to your businesses growth you can use third party logistics operations to increase your delivery area and warehouse locations without having to pay for new buildings or staffing. In today’s market, you have to compete to be the best by providing the speedy delivery service that customers expect. Customers don’t want to have to wait a week for their goods when they can get them elsewhere where they can take advantage of same or next day delivery. You too could offer the same, if not better service than your competitors allowing your company and customer base to grow bigger and faster than you ever thought possible.