WHAT IS THIRD PARTY LOGISTICS (3PL) ?
3PL, or third-party logistics, is essentially a variety of services and processes that are provided to a business by an external company for a variety of reasons such as wanting to reduce costs, improve efficiencies and expand capabilities. 3PL services are usually flexible and scalable based on the needs of the business, meaning that they can be utilized on an as-needed basis, or as a long-term solution depending on the goals and objectives of the business.
BENEFITS OF 3PL
3PL logistics providers can deliver a great deal of value to companies that are dealing with the challenges associated with rapid growth or changing market conditions.
COST SAVINGS
3PL providers have vast networks of resources across the country. This includes trucking and transportation fleets that your company can take advantage of without the necessary massive investment in overhead and capital setting this all up on your own would require. This level of flexibility adds up to significant cost savings which have a big impact on the bottom line.
FLEXIBILITY & EFFICIENCY
The level of service you obtain from a 3PL provider is entirely up to you, and can be adjusted to accommodate different levels of business due to seasonal or cyclical demands. For example, if your company sees a big surge in orders every year for the holidays, 3PL companies can scale up services and labor accordingly to meet high demand needs, and then go back to normal levels once the surge subsides
In addition to the savings in capital costs, many companies see a significant savings in time through 3PL services. This can take the form of lower cost per unit shipped, faster transportation and reduced delivery times, and in the ability for the whole organization to devote more time to its core specialties, including product development, customer service, sales & lead generation, or market growth.
Improved efficiency means greater return on your investment.
