Southern California is home to a wide range of Fortune 500 companies, including well-known companies like eBay, Hewlett-Packard, Chevron, and Ross Stores, along with lesser-known companies like A-Mark Metals, Reliance Steel & Aluminum Co., and construction company Aecom.
Many Fortune 500 companies in the US do utilize 3PL services, and for a number of good reasons. This report by Armstrong & Associates indicates that 90% of domestic Fortune 500 companies use the services of a 3PL. Their most commonly used services are transportation management, warehouse management, and/or value-added services. The report includes profiles for seven 3PL leaders who serve customers in the automotive, retail, technology, and food/grocery industries.
Why Fortune 500 Companies Rely On 3PL
It’s simple: many companies large and small would prefer to preserve their cash, or invest it in additional locations rather than pay for an in-house warehouse and distribution system. Outsourcing their supply chain operations to a 3PL company allows them to do that, and focus on what they do best.
For smaller businesses, third-party logistics is the most efficient option. The associated cost of warehousing and distribution, along with labor and infrastructure expenses, isn’t viable for them.
For larger companies, it makes sense to outsource the supply chain to control costs and increase the efficiency in their supply chain. The larger the company, the more likely they will have a relationship with at least one 3PL company.
3PLs are also increasing their service offerings to e-commerce companies, especially in the B2C markets.
Benefits Of Partnering With A 3PL Company
Whether large or small, trusting your shipping and other supply chain functions to another company has distinct advantages:
· Lowers your capital investment—your initial investment in a 3PL will be, in the long run, less expensive than creating your own logistics network. You won’t have to invest in facilities, equipment, software and training employees, because the 3PL handles that for you, as well as your supply chain.
· Saves money across various platforms—the 3PL company you hire will help you focus on saving money without a reduction in the quality of your products or your company, as well as optimizing your logistics operations.
· Allows a company to focus on their business—one of the biggest reasons so many Fortune 500 companies utilize the services of 3PL companies is to give their supply chain functions to a company that specializes in it. You won’t have to be concerned with ever-changing logistics regulations and compliance. Without the difficulties of warehousing, shipping, and other logistical functions, your company can focus on its core functions and your customers. A 3PL company can also offer you flexibility and scalability to give you exactly what you need while working to improve product integrity and customer service.
Thinking about going with a 3PL? You’re in good company.
Let 3PL Worldwide Cover Your Supply Chain Needs In Southern California
Southern California retailers also have the home-field advantage with 3PL Worldwide. With corporate headquarters and warehousing facilities in Rancho Cucamonga, Los Angeles is an hour away, and Palm Springs 90 minutes. From well-known vendors like Walmart and Amazon to companies like StitchLabs and New Egg, 3PL Worldwide has California companies covered from the “buy now” click to the delivery.
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