Outsourcing transportation processes to a third party logistics provider is more common than some shippers might think. 3PLs offer a suite of services, including supply chain management. Efficient transportation is a competitive advantage in today’s marketplace and many companies now focus on optimizing logistics functions.
6 reasons to outsource transportation to a 3PL:
- Save Time and Money. A 3PLs expertise, transportation management software, carrier network and reporting capabilities assure time and cost savings for the shipper.
- Resource Network. 3PLs leverage industry relationships and shipment volumes to get lower prices. They can negotiate lower fuel surcharges, too. 3PLs have thousands of carriers in their fleet network, so carriers bid on freight which lowers the price significantly.
- Ongoing Optimization. A 3PL will continuously search for ways to cut costs and add value to your logistics operations. There’s a dedicated team of experts monitoring, analyzing and optimizing processes every day. A 3PL will make sure transportation operations never fall victim to the constantly changing supply chain environment.
- Risk Management. Outsourcing transfers the risks of transportation operations to the logistics provider, protecting your organization from penalties and fines. If a shipment is lost, stolen or damaged it’s the 3PLs responsibility. A 3PL lowers these incidents anyways.
- Technology. A 3PL with a TMS is instrumental for insight into the supply chain. TMS technology provides the custom data you desire. TMS software is very expensive, so when a 3PL integrates the technology, you save money, plus get more accessibility to capacity. Shippers benefit from increased load consolidation, more frequent backhauls and optimized routing and distribution.
- Operational Control. Through a 3PL partnership, your operational control will increase. Outsourcing is a two-way street. A reputable 3PL will collaborate and report to you regularly which creates visibility and real-time metrics into your transportation processes than ever before.
Outsourcing transportation management saves businesses time and money. 3PLs provide expertise to add value to your supply chain processes and give you time to focus on what matters most – your products, business and customers. If you’re ready to reap the benefits of outsourced logistics, contact PLS Logistics Services or request a free freight quote online.
Seen other advantages from a 3PL? Disadvantages? Leave us your comments below.