The Benefits of Using Third Party Logistics Providers
If you are a business owner, then you probably know at least something about third party logistics. In more simple terms, third-party logistics is the use of third party businesses to complete aspects of a company's supply, warehousing, and even shipping processes. If you have never heard of it before, there are a number of reasons why you should learn more about it. Here are some of the main reasons why you should be aware of third party logistics.
One of the most obvious reasons that companies often outsource their supply chain to a third party logistics company is efficiency. Supply chain management involves tracking every step of the way that your goods get from the supplier to your customer. For example, if you're a wholesaler that deals in products such as clothing, shoes, hats, and even electronics, then you probably have an entire department dedicated to tracking where your items are, how they're shipped, and when they arrive. If you outsource these responsibilities to the fulfillment or third party logistics company, all of this work gets outsourced to a third party that can oversee it. You'll only need to focus on managing your customers and providing products.
Another advantage of third party logistics is that they can offer a comprehensive solution for your supply chain management needs. Most companies only outsource their logistics needs to a fulfillment or shipping company. But a fulfillment and shipping company will not only handle your actual inventory, they'll also handle the rest of your order fulfillment needs. They'll provide you with an experienced and knowledgeable staff that can help you fill orders and ship products to your customers. This means that they will handle the transportation of products, including trucking costs, and they will also save you money on your shipping costs.
When it comes to your warehouses and storage facilities, you don't have as many options as you would if you hired third-party logistics providers to do everything for you. You'll want to pay close attention to how you're maintaining your storage and warehouse operations to see which services you're most in need of. If you're constantly short of space or you need extra vehicles to store goods that are seasonal, then you can probably cut back on some services or add-ons until you're back in a positive flow. Some services that third-party logistics providers charge extra for include insurance, unemployment benefit policies, worker's compensation coverage, as well as warehousing and inventory control. However, there are many additional warehouse and storage services that third-party services can provide you, so it's usually well worth paying the extra price to keep your warehouse running efficiently and fully stocked.
Many people underestimate the value-added services that a fulfillment and shipping company can provide. A good logistics provider will offer services such as full stock replenishment, return management, order tracking, pick and pack tracking, and even international warehousing. Third-party providers generally won't offer as many of these options, but if you need one or more, you should definitely shop around. If you're using a third-party company for all of your fulfillment needs, be sure to evaluate their level of experience and skill. It's always better to choose a provider who's been in business for at least a few years, as experience is going to be what helps them make accurate, timely, and valuable estimates. They should also have a good reputation for customer satisfaction, something that can only come with experience.
Third-party providers often provide their customers with a complete line of solutions, which can save you time and money. While in-house logistics is great for getting things done as quickly and efficiently as possible, third-party providers can complete orders faster and with less hassle. The downside to using third-party providers is that they aren't as flexible when it comes to customization. While you can custom design products to meet your exact specifications, you're usually stuck with whatever products they choose. In most cases, third-parties don't offer as much variety in products, which can end up having a direct impact on how quickly and efficiently you get the job done.
When you use first party logistics providers instead of third-parties, you get first party expertise, as well as an extensive range of services designed to meet your specific needs. These services include shipping, packing, pick and pack, and transportation assets. First party logistics providers also specialize in many different areas, allowing them to offer specialty services such as refrigerated trailers, pallet flow packaging, and heavy lift storage. This means that you get a full range of innovative solutions that you can trust, ensuring that your product arrives at its destination in perfect condition.
Using third-party logistics providers is the best way to expand your business. You'll eliminate all of the hassle and expense associated with shipping and packing, as well as reduce the amount of man-time devoted to running your warehouse. When you combine transportation services, pick and pack, and warehousing capabilities, you can improve the efficiency of your supply chain significantly. You can also cut your costs for shipping goods to and from your facility and save money on the cost of storing goods that you aren't using immediately. These are just a few of the ways that using third-party transportation services can help your business.