What is 3PL? 5 Benefits from Outsourcing Logistics to a Third Party

Benjamin Glouton
What is 3PL? - The benefits of Third party logistics

Logistics: The detailed coordination of a complex operation involving many people, facilities, or supplies.

Many companies handle their own logistics, but increasingly they are turning to third-party services. Third-party logistics (3PL) service providers take on all the logistical issues and handle the day-to-day operations. The benefits companies receive are:

1. Expertise
Having a 3PL provider ensures that your business’s logistical arm receives the latest developments in logistic software, technology, and industry techniques. The expertise provided allows more innovative approaches to be taken on dealing with your logistical flow.
Being experts at handling logistics, solutions arise that were never considered.

2. Access to a larger resource network
One advantage of using a 3PL service provider is access to a sizeable resource network, oftentimes bigger than what companies could access themselves. Between 3PL providers’ ability to access their own network connections, as well as volume discounts, they can provide you with the fastest possible service adhering to your needs.

3. Time and Cost Savings
A 3PL provider reduces the need to invest in transportation, warehouse storage, technology, and staff. Since 3PL providers are also experienced with logistics, they can also avoid any expensive mistakes and have a large network to leverage to save money and time. 3PL providers can also cut down on the amount of paperwork, billing, and audits you would need to perform. The reduction of employee expenses also reduces areas such as workers’ compensation and liability costs.

4. Focus on your Business
By focusing on your business and allowing the 3PL company to focus on logistics, you can remove some unneeded stress. It’s reassuring to know that your logistical worries are in the hands of a professional third party; any issues, paperwork, and deadlines are all completely handled.

5. Flexibility and Scalability to Suit You
Using a third-party logistics provider means you can easily scale your logistics needs depending on your requirements. The ability to scale up as needed is useful for instances such as expanding your business into new areas, growth periods, or seasonal busy periods such as the holidays. On the other hand, it’s also easy to scale back as needed in slower business periods. It’s also possible and easier to switch among 3PL providers as needed, compared to dealing with reorganizing your own logistics department.

Contact us today to receive high-end logistics.