Top Ways a 3PL Can Help Reduce Supply Chain Risks

Everyone is on the lookout of ways to optimize their and improve their business operations. Many do this by focusing on internal changes, while a very few understand that turning to external parties could work wonders. This stands true for many operations, including logistics. Supply chains across various industries have experienced the pressure due to changing consumer patterns, especially during the pandemic. Incorporating agility to the supply chain is the need of the hour – this is where a 3PL like ProConnect Integrated Logistics can help.

Supply Chain and 3PL

Supply chain isn’t just about shipping, procurement, storage, and distribution of goods – it covers everything right from manufacturing to the final delivery to the customer. Supply chain managers are always looking to improve, optimize and make this process more efficient, and an experienced 3PL company can help with this.

Top Ways in Which 3PLs Can Help Reduce Supply Chain Risks:

Businesses face many kinds of risks across their supply chain which can be reduced by appointing a 3PL. In addition to freeing time to focus on your core competencies and other supply chain operations, a 3PL also helps you keep up with the dynamics of the logistics sector. Here are some of the ways a 3Pl can help mitigate risks:

A 3PL company facilitates shipping, custom clearance, warehousing, fulfillment, and distribution of goods for their customers. It finds competitive rates, matching schedule, reliable carriers and also undertakes documentation hassles. Therefore, an experienced 3PL can play an integral role in making your supply chain smooth.

Cost Saving – Logistics providers / 3PL have a large network of agents and relations with the shipping lines or carrier companies this enables them to offer you a competitive price for shipping. While they do charge for their services, however, it still turns out to hold a better ROI. 3PLs have the capability to offer better rates, premium distribution, warehousing, fulfillment, advance technology, and several other value-added services – which as a package can prove to be more cost effective.

Better Stability – Supply chains can be disrupted due to many reasons – change in government rules, trade relations between countries, natural disasters, etc., a 3PL can help in providing stability to your supply chain operations. By leveraging their extensive relations with other logistics counterparts, they can try to ensure your supply chain is not affected; moreover, they can also help in appointing a backup supplier for you in case your existing supplier pulls off or has a shortage.

Space Crunch / Capacity – 3PLs specialize in operating across land, sea, and air freight. In situations where your current shipping line or transporter does not have space available, a 3PL can help you find the required space in your required schedule. Moreover, they can also suggest best possible alternatives to suit your requirements. Thus, a 3PL can try to get your goods reach their destination even when the capacity or space gets full or tight.

Infrastructure – Not all companies have the budget and resources to build a warehouse of their own. It requires heavy investment in land, manpower, machines, tech, etc. 3PLs will have their own warehouses with all the required resources that can fulfill your storage requirements. When a 3PL does not have their own warehouse, they can either build / rent one based on your specifications or they can find a warehousing partner as per your requirement. Either way, this can benefit you.

Stock Visibility – Having a pulse of your inventory and stock levels is a must for smooth supply chain operations, thanks to high market volatility. You need to have real time visibility of your stocks – inbound and outbound. This allows you to monitor, plan and ensure your products are always on the shelf.  Moreover, stock visibility also allows you to study the market trends and innovate further. A 3PL will have all the required IT capabilities and technology let you track your goods, give you timely reports, real time visibility into your stocks and also identify problem areas which can be worked upon.

ProConnect Integrated Logistics for your Business

You’re not the only one thinking of outsourcing part of your operations to a 3PL, many companies and shippers agree and rely on us to efficiently support them. Optimizing supply chain is not easy, it requires tying lots of activities and ends together, opting for an experienced 3PL like ProConnect Integrated Logistics can offer many benefits – thanks to their expertise, experience, resources and of course, their network, which can reduce your supply chain risks marginally. You may or may not have a supply chain department of your own, but you still need a trusted team to identify and avoid potential risks and problems that can affect your supply chain operations. Therefore, a 3PL is often turned to and appointed by large companies as well as SMBs.

For any questions or evaluation, get in touch with us.

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