Today's companies struggle with third-party logistics, in part because of one key question: Should the company utilize internal resources for its logistics operation or outsource to a 3PL. Here are the top 10 reasons why the shipping community should partner with a 3PL.
The investment in technology is quite daunting, and today’s 3PLs have invested in the technology that can reduce overall costs while providing visibility and other value-added services. Customers today would need tremendous outlays of cash to support this initiative while securing internal IT resources. 3PLs have turnkey solutions at their disposal to support complex supply-chain challenges.
2. Freeing Up Resources.
3PLs have trained and qualified resources dedicated to the logistics industry.
3. Core Competency.
By selecting a 3PL, the shipper’s company can focus on their core competency versus the distraction of building a supply chain.
3PLs should be focused on delivering value, and that value equates to savings to the shipper/customer.
5. Network Visibility.
3PLs deliver the shipping community visibility into all modes of transportation. This will reduce overall supply-chain cycle times and allow for superior customer service.
6. Industry Knowledge and Insight.
By hiring a 3PL, customers get the latest industry information and trends. The 3PL provides feedback on “best-of-breed” practices based upon its experiences in multiple vertical markets.
7. Continuous Improvement.
By selecting a 3PL, the customer receives constant feedback on how to improve the overall supply chain. This is accomplished through a formal review process that has established benchmarks for improvement.
8. Management and Reporting.
The 3PL community provides leading industry expertise across the supply chain, from inventory management to carrier management to customer delivery management. The 3PL industry is focused on delivery value and savings across all modes of transportation and distribution.
Across the supply chain, 3PLs deliver technology and resources to support vendor compliance and low-cost carrier utilization. This process ensures cost and service optimization.
3PLs leverage the collective spending of their clients, increasing the buying power of an individual shipper. 3PL technology allows for collaboration and consolidation to further leverage the purchasing of transportation services.