Why Hire a Third-Party Logistics (3PL) Company?
If you are considering outsourcing your company’s supply chain management to a third-party logistics (3PL) provider, it is generally a good sign that your company is expanding. However, keeping up with demand and increasing consumers during these growth spurts are where a lot of business owners run into trouble.
Having your wits about you can help guide your company to success. However, plenty of managers still make the age-old mistake of overestimating their abilities. Whether it is pride or ignorance, having poor logistical strategies will hurt your business’ reputation long-term. Outsourcing to a 3PL company helps lower these risks in a variety of ways. So why do companies choose to manage their supply chain when there is so much to lose? What does one gain from outsourcing?
Current economic theories suggest that productivity increases when businesses and individuals specialize in skills and production. It is this theory that sets the foundation for labour practices, niche products, and ultimately, global trade. Through specialization, companies can narrow in on key success factors pertinent to their product or industry. By limiting the number of objectives, businesses can achieve a greater degree of efficiency while focusing their efforts on where it matters.
However, when enterprises undergo specialization, eventually they will have to sacrifice in-house operations in favour of increased efficiency. It all comes down to the simple understanding that no one can be great at everything.
So, when a business has gaps within their solutions, often it is more effective to outsource a portion of their services. These could include business segments such as customer service, billing, advertising, marketing, or supply chain logistics.
The Benefits of 3PL?
Outsourcing your supply chain solutions to a 3PL company is a great decision for companies lacking the specialization or labour needed for time-consuming transportation management. Daily logistical tasks like quote comparisons, delivery scheduling, warehousing, and relationship management require large commitments from employees, and without a dedicated team, you can quickly start hampering your business’ success.
As your business has optimized its services for your specialty, 3PL companies have optimized their supply chain management. 3PL owners have vast networks of already established carriers for the objective of cost-savings and increased efficiency. When choosing to outsource, business owners will not only save on time but also their money.
As mentioned before, 3PL companies are specialized in supply chain management. When deciding to outsource, clients will be connected with experts of trade. 3PL helps circumnavigate the need for expensive and time-consuming training. As well, companies avoid the difficult process of developing a cost-efficient logistical network.
3PL companies have the luxury of focusing their technological investments on supply chain solutions. Most of the specialized software and hardware involved with logistics would be an unfathomable expenditure for many small to medium-sized businesses. Outsourcing logistical services mean that your business is connected to the best of supply chain technology without the fronting the costs.
A lot of supply chain management boils down to relationships. Enumerable amounts of hours are put in by 3PL providers, assessing every portion of their supply chains with carrier audits, project management, and historical analysis. These connections are groomed and optimized to create a network of options for any business size. 3PL solutions, for this reason, are designed to grow or shrink with your business’ needs.
Don’t Risk Success
Some businesses can make do with internal supply chain management, but for many more, it can result in a distraction from what truly makes your company a success. So, if you’re serious about growing your customer base, or if you’re struggling to keep up with demand, 3PL providers can help you navigate the expansive world of shipments.
For years, we have helped business owners, like yourself, achieve significant returns from their 3PL solutions. If you have any questions regarding the outsourcing of your company’s logistical needs, contact Options Transportation today.