How 3rd Party Logistics Companies Improve Efficiency of Operations & Add Value

In difficult economic times, 3rd party logistics providers are uniquely situated to provide additional tasks and services for companies to ease the burden on client operations. 3rd party logistics providers are better equipped to handle order fulfillment and storage/warehousing efficiently than clients could in-house.
 

Although product ownership and the nature of customers may differ across industries, most businesses share the same day-to-day concerns with regards to order fulfillment, shipment, and transport of products/goods. Across differing ranges of revenue, varying industries, and different supply chain functions, the main driving pressure behind warehousing professionals is to improve management and performance, while reduce operating expenses.

 

3rd party logistics goals include improving efficiency of operations and increasing value-added services. Many retail operations rely on 3rd party logistics providers to help keep business moving smoothly. Choosing to outsource allows companies to focus on their primary activities, including product development and customer satisfaction while entrusting warehousing, transport, customs, and other services to 3rd party logistics providers. In the United States, use of 3rd party logistics providers has increased steadily over time for businesses of every size. Gross revenue of 3PL providers has increased exponentially in the past decade as well.

 

Value Added Services Provided by 3rd Party Logistics

 

3rd party logistics providers specialize in many areas including:

 

-Finding shipping terms
-Stock management and product storage (enabling purveyors to glance at reports and know what’s in stock/on order)

-Order processing and dispatch on a schedule is the most pivotal area of concentration for 3rd party logistics providers

-Effectively managing inventory through warehouse systems for retailers, providing inventory level reports, and securing items until time of sale or shipment are other 3PL specialties

 

3rd party logistics providers don’t just stock and handle merchandise, they provide crucial support for shippers and retailers who are looking into overseas markets. International logistics providers benefit organizations by assisting with air freight, shipping, and protecting goods in transit, ensuring arrival in time to keep business moving smoothly. Negotiating fair pricing schedules and marketing products for sale, as well as manufacturing high quality products is a full time job in itself.

 

3rd party logistics providers are known for dedicating themselves to integrated transportation management and warehousing, serving as a direct extension of a retail operation. 3rd party logistics providers also customize services to meet client’s specific needs, and serve companies who ship and sell large and heavy items, particularly large equipment, industrial machinery, or massive quantity of products.

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