Why Should Businesses Look To 3PL

Why Should Businesses Look To 3PL

Linda James, Logistics Tech Outlook | Monday, November 23, 2020

Some 3PLs have the proficiency to improve distribution networks and consolidate routes, train drivers to include fuel-efficient behaviors, specify equipment to diminish emissions and leverage technology to restructure inventory and improve vehicle performance.

FREMONT, CA: 3PL providers offer custom solutions that meet a business's particular needs for assembly, packaging, warehousing, and onsite integration. An outstanding 3PL provider has detailed knowledge in logistics and a collection of resources to help recognize and fill any noticeable gaps that a firm might have.

Following are some advantages that manufacturers can gain by using a 3PL:

Improve Global Capabilities: 3PLs have on-ground knowledge of local markets, government agencies and regulations, and an understanding of capacity constraints.

Reduce Cost: 3PLs can help decrease excess carrying charges, return goods costs, and lost sales. They can also assist manufacturers in moving more material with lesser assets while still meeting customer requirements. In some cases, manufacturers can understand savings when consolidating warehouses or using shared facilities run by 3PLs.

Achieve Environmental Objectives: Some 3PLs have the proficiency to improve distribution networks and consolidate routes, train drivers to include fuel-efficient behaviors, specify equipment to diminish emissions and leverage technology to restructure inventory and improve vehicle performance.

Boost Security: 3PLs have the expertise to help navigate firms through new security regulations and can offer counsel on best practices to boost security policy and procedures. In most cases, 3PLs can administer a supply chain security program's employment, from asset and facility security to security monitoring services and training.

Improve Quality: Working with a 3PL, enterprises can expect to improve performance in areas like reduction in inventory levels, superior product availability rates, fewer customer complaints, and better-quality order accuracy. Manufacturers also can better assess the performance of supply chain partners when they have useful data.

Speed Process Change: It can occasionally be easier to make process changes with an external provider since one can tap into someone else's existing infrastructure, people, and technology. This instance is crucial for manufacturers who need to grow at a fast-tracked pace.

Eliminate Hand-offs: Frequently, the lines can be indistinct between what 3PLs do versus their customers. Manufacturers can benefit from collaborations by engaging 3PLs in adjacent processes that take place before or after what is considered a conventional supply chain activity. When one eliminates hand-offs, they can increase speed to market and reduce budgets.

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