4 Reasons To Hire a Third-Party Logistics (3PL) Service

A startup can easily manage its inventory and warehouse operations due to low stock levels and a short client list. However, stock management becomes challenging as a company grows, which can lead to inefficient logistics. Unfortunately, logistical challenges can lead to wastage and affect the bottom line. This is why you may find it wise to delegate supply chain operations to third-party logistics (3PLs) companies.

Engage 3PL services to effectively manage your enterprise's unique logistical needs and issues. In particular, these service providers control all product distribution and delivery aspects, allowing business owners to focus on core operations. This post highlights four benefits of hiring a third-party logistics service.

1. Leverage a Developed Network

Logistics operations are highly volatile since multiple factors might cause delays and affect profitability. Therefore, your business might become vulnerable by handling every supply chain aspect in-house due to various issues, such as limited resources. For example, some SMEs (small-scale enterprises) lack a network of carriers they can turn to if they encounter distribution challenges. Unfortunately, such inefficiencies affect customer service and adversely impact brand image.

Established third-party logistics services understand the sector and have several established partnerships with transportation companies, warehouses, and other stakeholders. Businesses like yours can leverage 3PL's organized networks to improve customer service. For instance, a 3PL can transfer your products to a different carrier within its network if a delivery truck malfunctions. Besides, reliable distribution networks, including last-mile delivery, are critical for contemporary logistics solutions.

2. Shipment Visibility

Customers want to know the condition of products in transit for various reasons, particularly for their own peace of mind. Unfortunately, in-house supply chain management does not guarantee clients immediate feedback since you might lack sufficient resources to track commodities in real time. Consequently, you put a customer in the dark during delivery, denying them the opportunity to make critical decisions.

Hire 3PL services since they double as mediators between customers and carriers and can contact the latter throughout shipment. As a result, a service provider can provide you with real-time information regarding your cargo, including the precise location and state. Most importantly, supply chain visibility allows you to make informed business decisions regarding inventory.

3. Leverage Technology and Data

Competing departmental needs and limited resources can stagnate an in-house logistics department. Consequently, SMEs might fail to invest in state-of-the-art logistics management systems that help streamline distribution processes. Unfortunately, this means you will miss the opportunity to leverage the capabilities of emerging technologies to enhance product distribution and improve the bottom line.

A 3PL service's core business is logistics, which means they likely enjoy economies of scale in different areas, including technology adoption. In particular, a service that continuously updates technology systems gains a competitive advantage. For instance, some 3PL providers constantly upgrade their TMS software to streamline shipment scheduling and improve visibility. Additionally, a 3PL service might analyze data collected using various tools on your behalf to improve business operations.

4. Focus on Core Competencies

Identify and concentrate on your company's core competencies to improve the chances of success. Some enterprises establish an in-house logistics department although they are not competent in the field. Unfortunately, supply chain management is a non-core activity that might eat into your company's resources. Consequently, an enterprise may struggle to adequately support its core processes, affecting its performance.   



Logistics is complex because it involves multiple partners, and the relationships require time to develop. Therefore, hire a 3PL company and focus on your business's core competencies. A 3PL service cuts unnecessary expenditures that a firm can direct toward strengthening its principal skills and capabilities for strategic advantage.

3PL services eliminate the need for in-house logistics. Contact us for professional logistics services at competitive rates.