How Can a 3PL Provider Save Me Money?

  Did you know that 96 of the Fortune 100 companies use a third-party logistics provider? The fact that third-party logistics providers, or 3PLs, are employed by thousands of businesses worldwide is a testament to the efficiency and effectiveness of their services. However, many moderately-sized companies wonder whether a 3PL is truly advantageous on a smaller scale. The truth is that 3PL services can benefit businesses of all sizes, and they are an excellent way for a company to take itself to the next level. This is especially true in the over-the-road space, where you can face rapid changes in demand and scale. Fixed costs can make growth difficult or drain revenue when you need to increase or reduce shipments. A variable cost model from a third-party logistics provider makes it easy to control and protect your business. Let’s look at a few ways 3PLs achieve this.

Benefits of using a 3PL

 

You can focus on your expertise

When you take the burden of moving your product off your shoulders, you can focus on what you do best. Very few people go into business simply because they enjoy managing freight and shipping products. However, these processes are a necessary part of doing business. However, as you may have already learned, managing your freight, shipping, and warehousing can quickly take over your already busy schedule. Seeking the assistance of a 3PL company allows you to delegate these processes to professionals. You go back to the true purpose of your business while knowing that you’re meeting customer demands. Freight is moved and managed correctly and arrives on time. Your third-party logistics provider should guarantee it.  

Access to experts at any given moment

Outsourcing to a third-party logistics provider means hiring a team of professionals who specialize in the supply chain. You don’t waste time or money navigating your way through the intricacies of shipping processes. The 3PL takes over the pick-up, transport, and warehousing portions of your business. That shift allows you to immediately hit the ground running by relying on their skills and experience to your advantage. When you hire a 3PL provider, you immediately gain their years of knowledge and ensure that your shipping policies and practices are the absolute best available. Get your own expert now  

 

Get advanced support you can’t do alone

When you enlist the services of a 3PL provider, you are putting the power of all that provider’s clients to work for you. Third-party logistics providers also can use their network to find solutions that benefit all parties. Rather than loading and moving your freight as one full-truckload (FTL), the 3PL company can combine your less than full-truckload (LTL) freight and needs with those of its other clients. That’ll help reduce your costs and can be especially useful for shipping smaller quantities while making your shipments more regular. Combining your freight with other companies’ freight can give you access to lower freight rates on your smaller quantities. Your partner can negotiate rates, discounts, and other services by negotiating based on the combined volume of all their clients. That’s buying power you, as a private company, generally can’t have.  

Continuous improvement without needing to do anything

Third-party logistics providers offer a continuously improving service. As the market moves and new services arrive, you gain access through your 3PL partner. Just as you are constantly striving to improve the buying experience for your customers, your 3PL is constantly improving on its services to benefit you, their client. 3PL providers can improve by offering faster, less expensive shipping options, simplified and cost-effective strategies, and more. With the assistance of a 3PL company, you know that you, and therefore your customers, are receiving a continuously improving platform, which benefits your bottom line.      

How 3PL providers actually save your company money

As every business owner knows, time is money. By hiring a 3PL provider, you are freeing up time you would otherwise have to spend on your business’s transporting and freight management. Instead, you can focus on the core operations of sales and customer support, increasing your company’s value. Unhappy customers and delayed freight can be costly. By entrusting your company’s supply chain processes to a 3PL provider, you are giving your customers the best options available, resulting in fewer delays and complaints. Outsourcing your shipping and inventory processes to a 3PL provider is a simple move that can result in vast savings and improved efficiencies for businesses of any size. Need help finding a 3PL that is right for you? Reach out to the experts at Franco Logistics today!