Why You Should Hire a Third Party Logistics Provider5 min read

Third-party logistics (3PL) providers offer an all-in-one solution for assembly, packaging, warehousing, and distribution.

A reliable 3PL logistics process provider can maximize your profitability through their knowledge, expertise and resources. Let’s look at some advantages of hiring a 3PL provider.

6 Advantages of Hiring a 3PL Service Provider

1. It Saves Money in the Long Run

It may seem like hiring 3PL services provider would be expensive, so you may be against the idea. However, hiring their services will save you money in the long run.

By using their services, you won’t have to invest in transportation, technology, warehouse space and staff. All this will cut down your costs significantly.

2. The 3PL Provider Brings Their Expertise

A 3PL provider is aware of industry best practices. They also stay up-to-date with the latest developments in the manufacturing and logistics industry.

When you hire a 3PL provider, they will bring with them their industry expertise. They will help you incorporate industry best practices in your business. For example, they would suggest using industrial floor scales as it is one of the best weighing practices.

3. It is Less Expensive than Handling Logistics Yourself

If you want to handle logistics yourself, you would have to spend on various things. For example, building warehouses, facilitating transport, hiring labor and investing in technology. 3PL services take care of all these things, thus reducing your costs considerably.

Moreover, 3PL providers also eliminate the hassles of billing, paperwork, audits, staffing, and training. They also optimize and improve the supply chain.

3PL providers eliminate the hassles of billing, paperwork, audits, staffing, and training.

4. It Helps You to Position Yourself in Newer Markets

One major benefit of 3PL logistics outsourcing is gaining the ability to establish yourself in newer markets.  

You will have access to distribution centers and warehouses in multiple locations across different regions. This will allow you to grow your business in new markets by being able to ship your product anywhere across the globe.

You will be able to locate and track products in a new market without spending on equipment, warehousing and labor. You can save money and instead spend it on positioning yourself to your new customers.

5. It Frees Up Time to Focus on Core Competencies

Outsourcing 3PL logistics operations will free up your time. This will allow you to focus on the core competencies of your business. Since the experts would be handling your logistics, you won’t have to worry about logistics management.

6. It Helps in Continuous Optimization

The amount of work required to ensure the smooth running of supply chains can be overwhelming. You may even have to put in a lot of work with limited resources. All this can be eliminated by hiring 3PL providers.

When you partner with a 3PL provider, you can optimize the supply chain. 3PL providers offer faster delivery times and more accurate order fulfilment. This leads to happier customers.

Infographic listing the advantages of hiring a 3PL provider

How to Choose the Right 3PL Service Provider

Partnering with a third party logistics provider will help your business as it scales up. However, not all 3PL providers are created equal. As a result, one needs to put in the effort to zero in on the right 3PL provider.

Your 3PL provider should have the following:

1. The Ability to Scale

As your company grows, so should the services of the 3PL provider. If they don’t have the ability to scale their operations to the growing needs of your business, move on to the next one.

Apart from scaling up, they should also be able to scale down when the customer demand is low. Ideally, look for a 3PL supplier who can offer you comprehensive and holistic services. They must be able to handle a sudden growth of your company.

A good 3PL will be able to handle a sudden growth of your company.

2. Technology to Support Clients

Every 3PL supplier has multiple clients. This means that they should have the technology to manage each client successfully.

Ensure that the 3PL supplier is abreast of the latest technologies in your space. They must be adept at handling ongoing technological changes.

Check if the company invests in relevant technology and innovation-related projects. Lastly, they should be able to integrate their system with your automation requirements.

3. The Ability to Offer Various Warehousing and Transportation Options

Choose a supplier who can offer you a wide range of shipping and warehousing options that meet your operational needs.

If the 3PL provider has extensive relationships with numerous suppliers, you will also benefit from their association. You can choose an option that offers the lowest cost.

4. Financial Stability

Ensure that your 3PL partner has a stable financial past. If their payment history is solid, the chances of them quitting on you due to financial problems is low.

Ask for a listing of their partners and enquire about the 3PL provider’s payment history. If they have never missed a payment, it indicates they are stable financially. This could act as a litmus test of how they would treat your company.

When you get a clear view of their financial stability, you can be sure of a fruitful association with them.

Infographic on the hallmarks of a good third party logistics provider

As you can see, outsourcing to a 3PL provider can benefit you in numerous ways. They help you minimize wait times, maximize profits, and improve customer service. If you are in the logistics industry,  outsourcing to a 3PL service provider is highly recommended.


A Little about LateShipment.com

We at LateShipment.com work hard to make “parcel shipping & delivery” transparent and help businesses be fully in control of their last-mile success.

Some of our high-impact offerings are:

  • Automating refund claims from your shipping carriers for service failures to help you save money on shipping.
  • Giving you full control over delivery delays that harm your brand and sales. You can now predict parcel delays and even fix them by keeping customers informed.
  • Reporting at every stage of “shipping & delivery” to enable you with critical supply-chain insights.

The value we add to businesses is most evident when experienced first-hand. Learn more about our solution here.

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