In the course of business, it’s always a challenge to keep things going while improving. One of those ways you can do both is to sign on with a 3PL, or Third Party Logistics provider to take over some or all of your supply chain.

What Are The Main Reasons A Company Might Turn To A 3PL Provider?

It may seem odd to consider outsourcing such a big part of your operations to another company. But consider this: what is your company’s core competency, or the basis of your business? If supply chain is not your company’s core business, and it’s taking up a large chunk of revenue, time, and/or attention, a 3PL could be the next step in your company’s life.

Key Functions of a 3PL

A provider can be many things to many companies, but the basics of a 3PL company include:

  • Transportation, including ground, air, etc.
  • Global transports and distribution, including customs, freight forwarding, consolidation, etc.
  • Information technology for managing transportation, warehouse operations, e-commerce, and customer relationships, as well as increased visibility to the supply chain and anything that’s in transit.

Because 3PLs deal with the different aspects of the supply chain every day, they are better able to negotiate better rates, help with both domestic and international transportation, as well as things like customs, trade compliance agreements, and international shipping protocols.

A 3PL also stays current on the latest in supply chain technology, giving them an advantage over most in-house supply chain operations.

Why Should You Consider 3PL?

Your company is unique, and you may have specific reasons for considering working with a 3PL provider. Some of the main reasons companies move their supply chains to 3PL include:

  • Time savings that you and your employees would spend handling supply chains, as well as prevent potentially costly mistakes
  • Cost savings through lowered transportation rates negotiated by a provider, as well as needless extra costs, and less returns and lost sales.
  • More savings when your company no longer has to handle warehouse facilities, transportation, the associated technology, and the staff to handle the logistics side.
  • Scalability of resources as needed during seasonal fluctuations, such as increased shipping and storage around the holidays and other higher-volume periods.
  • Using industry forecasting, a 3PL can help your company optimize your inventory levels and save money on inventory holding charges.
  • A more synergistic process that eliminates “handoffs”
  • Continual improvement and optimization due to the ability to modify connections in the system as needed and your company benefits from these improvements

When the time comes to find a 3PL, consider what your company needs from a provider. Where can one save you the most time and money? How can a provider increase your company’s efficiency? What could your company do when experts handle your company’s supply chain?

Let 3PL Worldwide Make Your Company More Efficient

Outsourcing your supply chain can offer any company a wide range of great benefits. 3PL can offer your company logistical services as well as additional services such as a call center, transport to or from anywhere, warehouse space in both Southern California and Connecticut. Our headquarter is located in Southern California, but we can work with you no matter where you are in the US. Contact us today at (877) 444-0002 or use our online contact form.


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