Benefits Of Outsourcing Logistics

According to the Chartered Institute of Logistics and Transport, the outsourcing of logistics services has become much more popular in recent years and that popularity looks set to rise in the coming years.There are many sound economic benefits of outsourcing logistics, including the following:

1) A massive network of unbeatable resources: a quality 3PL provider will always have a huge network of resources that is far superior to most in-house supply chains. Utilising the resource network of a 3PL can mean that each step in the supply chain is executed more efficiently and more economically. 3PLs can use their existing relationships to speed up your service and take advantage of volume discounts, which can be passed on to you, lowering overheads and saving a lot of money in the long run.

2) Enormous savings: using a 3PL provider will save your company time and money in so many ways, eliminating the need for you to invest in, for example, warehouse space, transportation, technology and expert staff, trained in logistics.

3) Decreased risk: trusting in the expertise of an experienced 3PL provider can prevent you from making expensive mistakes, allowing you to build up a worldwide logistical network with much less risk involved and a much higher return on your investment.

4) Decreased responsibility: as well as massive financial savings, 3PLs can take away the headache of so many tasks, freeing you up to get on with the important work of driving your business forward. A 3PL can take care of practically all of your admin work, including general paperwork, all kinds of billing and auditing, as well as your training, staffing and optimisation needs, making sure your products get where they need to go as quickly and efficiently as possible.

5) Industry expertise: a good 3PL provider is very well aware of industry best practices and is completely up to date with all of the very latest developments in logistics, including technology and manufacturing. Dedicated 3PL software enables inventory management, advanced reporting and online monitoring of the entire process. When you hire 3PL experts, you are securing peace of mind in the knowledge that all of your logistics issues are being taken care of, leaving you to focus on what you’re best at.

6) Scalability: using the right 3PL provider can make it much easier for you to scale your business, in terms of space, staffing and transportation. Allowing you the possibility to utilise more space and other resources when needed can enable you to take advantage of seasonal adjustments within your industry. A 3PL can help you grow your business into new regions, supporting your growth into new markets as you expand.

7) Constant optimisation: a good 3PL provider has all of the resources at hand to make the necessary improvements and adjustments to each link of the supply chain. They will make sure that your needs are met and they will use methods that are the most efficient and cost-effective, eliminating inefficiencies and streamlining the supply chain.

As the benefits of using 3PLs become clearer and clearer, more and more companies are taking advantage. Imagine how a 3PL could transform your business.