A shipper can benefit from partnering with a 3PL, which serves as a buffer between the shipper and the ever-changing logistics world.
Logistics functions may be outsourced to a third-party logistics provider to mitigate a variety of risks throughout the supply chain. While focusing on core competencies is critical, partnering with a 3PL provides a buffer between the shipper and the constantly shifting logistics arena.
3PLs help shippers mitigate risks in a variety of areas, including:
Shippers get compensated by 3PLs for providing services, but the return on investment often exceeds the cost. 3PLs provide shippers with cost-saving benefits, such as preferred rates from carriers, premium fulfillment space, cutting-edge logistics software, and more.
In the event of natural disasters, trade wars, and other unpredictable supply disruptions, a 3PL can help restore the balance in your supply chain. Your logistics partner may use their extensive supplier connections to ensure that you continue to receive the parts, raw materials, and other supplies you need, even in the event that your primary suppliers become too expensive or unavailable.
Your company may not have the money to buy real estate for storage or distribution, but 3P companies maintain a network of ready-to-go facilities. Even if your 3P firm doesn’t have existing assets in your targeted area, they may expand their portfolio by purchasing it for you and other prospective customers. If you want your own facility but don’t know how to accommodate it within your budget, you can often find affordable space for it through many 3P firms.
Trucking capacity has maxed out several times in recent years, causing carriers to turn down new customers because they simply don’t have the space. Your 3PL can help you find available capacity for your cargo across one or more modes because they already have existing relationships with a broad network of carriers. Even when capacity gets tight, your cargo will get where it needs to go thanks to existing relationships with a broad network of carriers.
It is more critical than ever to have end-to-end visibility of your inbound and outbound shipments thanks to Industry 4.0, making it imperative that you maintain a high level of visibility. It is crucial to be able to identify and correct problems before they occur thanks to high levels of visibility, so outsourcing transportation management, warehousing, fulfilment, and other services to a 3PL is likely to provide you with the benefits of their technological capabilities in tracking shipments to your customers and monitoring deliveries from your suppliers.
ProConnect Integrated Logistics – Your Freight Forwarding Partner
A third-party logistics firm can help shippers mitigate a variety of risks throughout the supply chain by outsourcing certain logistics functions. By partnering with a 3PL, a shipper can free up time to concentrate on his or her core competencies without suffering from the ever-shifting logistics landscape.
If you are looking for a partner to take care of all your logistics hassles, talk to us.