Outsource your logistics and focus on your core role (Business Development & Sales)
Third Party Logistics or 3PL & Logistics/Distribution Service Partner, put simply, is a process where a company outsources its logistics operations, or a part of it, to an external provider who specializes in providing these services. 3PL Providers typically specialize in warehousing and transportation services, but can also encompass more functions where a service provider may provide value added services related to procurement or production, thereby leading to supply chain integration.
Now, you must be wondering why you should outsource your logistics – it must be a considerable effort and change from your current processes. But once you start looking at the benefits, it will change your mind.
Logistics Operations can account for up to 25% of your total cost of doing business. Customers using 3PL services have been able to reduce this cost by up to 10%
Outsourcing your logistics frees up a lot of cost which is stuck in maintaining fleets,WH teams.Capital costs such as WH deposits can be eliminated.
Outsourced Logistics makes your business more agile – you can increase or decrease the level of services required as per your needs.
You can increase the scalability of your business by outsourcing your logistics – 3PL providers typically have large capacities that can be brought into utilization quickly.
3PL can also help you simplify your supply chain and make it measurable, so that you can realistically track the value being delivered.
3PL providers also use state-of-the-art technology systems to ensure that shipments are tracked and secured in the best possible fashion.