When planning your supply chain operation, there are multiple ways to handle the logistics. There are many more than five reasons why companies choose to partner with third-party logistics teams for their storage and distribution, but these are some of the most common and beneficial.
1. Is it beneficial for you to be flexible and scalable?
Working with a 3PL offers a scalable wall, which allows you to flex the amount of inventory that is in storage at any given time. This is especially helpful for companies that experience seasonal surges with sales and inventory levels. Companies planning an expansion also can benefit greatly from the flexibility that a 3PL partner can offer.
2. Are your efficiency rates lacking?
3PLs are experts when it comes to storage and distribution. That is what they do every day. If you are looking for ways to increase efficiency with storage space or picking rates, partnering with a 3PL could be a very clear and easy answer to those issues. It also allows you to free up space and manpower to focus on core competencies.
3. Are you completely focused on your core competencies?
What does your company do best? Unless you are a 3PL, I would be willing to bet that it isn't storage and distribution. Whether you are a manufacturer, wholesaler or retailer focusing on your core competencies is beneficial for business. How many more widgets could you get done with an extra machine or two in your warehouse? How many more sales could you make if you had a few extra aisles or helpful employees? A 3PL has the certifications, experience and manpower to help you achieve those goals and focus on what you do best!
4. Are lower transportation rates helpful?
Volume discounts, expert negotiations, and partnerships are a few of the ways that 3PLs can help you save on transportation. If you are looking to send full truckloads across the country, we know the best lanes and carriers. If you are looking to send a few pallets to select locations, our Less than Truckload rates make that extremely efficient. In short, 3PLs help you save both time and money on transportation.
5. Are you looking to expand your resource network?
Knowing more people within your industry is always a good thing, but knowing people that support your industry is an even better thing! If you are looking to expand your operation, having a logistics partner that is available to help in another region can be very beneficial. 3PLs can help to decrease startup costs and large investments in real estate and manpower because of our large resource networks in core areas.
If you answered yes to any or all of these questions, partnering with a 3PL may be a great fit for your company! We would love to hear about your potential interests or answer any questions that you may have about working with a third party logistics operation. Please visit our contact page to reach out.