3PL Business Model
Whether you’re looking to refocus your efforts on core business activities, mitigate existing risk, or increase returns on your current investments, third party outsourcing is certainly worth considering. Many organisations waste too much time and money on costly steps in the supply chain, without ever thinking to refine their process or make improvements. A dedicated third party logistics provider not only provides you with the freedom to refocus on other areas of the business, it can bring a whole host of innovations to the table too.
Different Types of 3PL Business Models
When it comes to third party logistics, there’s no one-size-fits-all solution. There’re a few main types of 3PL provider to accommodate a variety of logistical needs and requirements. These range from standard 3PL providers, focusing on the bare necessities of logistical activity like product picking, warehousing and distribution. More focused suppliers will provide their clients with more advanced services, including product tracking processes, security systems and other tailored solutions. Some 3PL providers completely adapt to the needs of their customer, taking over most if not all of their logistics activity. Certain businesses require much more integrated support, so more specialist 3PL providers may merge with clients to assume control over their entire logistics, delivering the highest levels of support and expertise.
The Benefits of Outsourcing
It’s little wonder that outsourcing of logistics has become more popular in recent years and it’s a trend that looks set to continue. Outsourcing doesn’t come without drawbacks, but the benefits to a business can be monumental. First and foremost, any quality 3PL provider will boast an impressive network of resources that most in-house operations simply can’t match. A superior network of resources means that each and every step in the supply chain can be realised more effectively. Businesses can reap the perks of an increase in processing speed or increased discounts that can lower overheads and ultimately, be passed down to the customer. In fact, a 3PL provider can produce huge savings throughout a project life cycle, utilising their existing assets and resources without you having to invest in this area yourself. This can include the rental of dedicated warehouse space and machinery, transportation costs and the hire of specialist logistics staff.
Minimal Risk, Maximum Returns
A 3PL provider isn’t just there to make your life easier, it can help you navigate around mismanagement of logistics. Any good 3PL provider will be able to utilise their existing associations and resources to help their partner build up a logistical networks quickly and effectively, navigating around costly investments and common mistakes that can set a business back substantially. A 3PL provider is there to advise you on best practice at every important crossroad and potential hurdle, all the while keeping you updated on the latest developments in logistics and every relevant sector. More importantly, they’ll take care of a multitude of tasks including logistics admin, billing and auditing, staff training and much more, leaving you to focus on driving your business forward in other areas.
Get in Touch Today
If you’re looking for the perfect 3PL partner for your business, get in touch with the team at The Logistics Business today. Our team has the expertise to identify the best fit for your requirements, helping you identify a 3PL provider that’ll dramatically benefit your business. Speak to the team directly and drop us a line on: 01527 889 060, or email us at: email@example.com.