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Why Should Firms Hire 3PL Providers?

By Logistics Tech Outlook | Wednesday, February 12, 2020

3PL providers have an immense resource network available that offers benefits over in-house supply chains. Every step in the supply chain can be implemented in the most efficient, cost-effective manner using a 3PL’s set-up.

FREMONT, CA: There are a host of benefits that companies gain by outsourcing logistics and supply chain management to a value-added 3PL provider. Third-party logistics presents an all in one solution for assembly, packaging, warehousing, and distribution. Using a 3PL provides companies with a reliable logistics lead and maximizes productivity through combined resources and knowledge. 

Following are three advantages to using a 3PL provider:

Resource Network

3PL providers have an immense resource network available that offers benefits over in-house supply chains. Every step in the supply chain can be implemented in the most efficient, cost-effective manner using a 3PL’s set-up. 3PLs can leverage volume discounts and relationships, which results in the fastest possible service and lower overhead. Selecting a 3PL provider facilitates companies to benefit from resources that are unavailable in-house.

Save Time and Money

Outsourcing logistics will also save a lot of time and money for the firm. Making use of a 3PL provider removes the need to invest in warehouse space, transportation, technology, and staff to implement the logistics process. 3PL providers can liberate from costly errors and enable enterprises to build a global logistical network with higher returns and lower risk. They also save the time required to carry out the supply chain. Furthermore, one does not have to worry about the paperwork, audits, billing, staffing, training, and optimization involved to get the goods delivered to their location.

Ongoing Industry Expertise

A 3PL provider is well-versed on industry best practices and stays up-to-date with the newest developments in technology, logistics, and manufacturing. 3PL software is proficient of inventory management, advanced reporting, and offers visibility to monitor the entire process. Besides, 3PL experts employ just-in-time methods to make sure the correct amount of inventory is shipped when and where one needs it. Outsourcing logistics lets firms to focus on their core competencies while leaving the rest to the experts. 3PL services will allow having peace of mind knowing a business’s logistics needs are being handled by reliable, experienced professionals.

See Also: Top Inventory Management Solution Companies

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