Using a 3rd party logistics company holds many advantages for expanding companies. A third party logistic company can help to store and send your merchandise to customers before and after a sale has been completed. Here are just some of the advantages when you hire a 3PL company when expanding your business.
- Expertise – One of the first advantages of using a third party logistics company is that they handle logistics for a living, thus they are highly experienced in this field. Some transportation managers tend to not be experts when it comes to the logistics and therefore may not know everything there is to know to give you the best services and advice.
- Efficiency – Another great advantage of using a third party logistics company is that they can be quite efficient. This is due to having access to high quality technology and infrastructure to help create a sound system that works. This in turn helps to translate to a higher service level given to your customers which can be cost saving to you.
- Core Competency – Utilizing resources of experts in logistics helps to free up your financial resources and time, allowing you to focus on what you do best. You can have the confidence that your logistics are being fully taken care of and you can focus on growing your business.
- Scalability – Hiring a 3PL company is also great for their infinite scalability. For example, if your business triples in an 18 month period, you don’t have to rush around to buy new equipment, secure a new facility, or train and hire staff. A third party logistics company takes care of all of this and opens new shipping options and merchandise management.
- Technology – These days most 3PLs incorporate and use the latest technology. This can give you all the advantages without having to make capital investment. However, it is important to check whether your 3rd party logistic company is offering TMS software or other freight technology from their in-house technology team and not outsourcing it to a software provider. In doing this, it will provide you with the biggest value when it comes to increased spending and profit.
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