Third-party logistics groups, or 3PL teams as they are better known, are critical partners for supply chain brands.
When there are challenges with transporting and controlling stock from various points, it pays to have an outsourced contractor that fills in gaps and drives towards higher operational standards.
We will discuss 6 reasons why they should be used for these commercial projects.
1) Saving Costs & Boosting Revenue
From the very outset, the decision to partner with 3PL teams will be realised once ownership and management assesses how much money they can save on one hand, and make on the other. It is only when organizations take a step back and see how much they waste on any given week that they understand how the costs are reduced. Yet it is also an exercise in tapping into additional revenue streams and boosting income that adds another layer of value for the company, providing a link between their resources, their robust operational standards and the bottom line of the enterprise.
2) Using Updated Technology
Companies that fall behind their competitors can attribute this downfall to a number of issues, yet it will be a lack of technology and infrastructure which is ultimately detrimental to their targets. This is where 3PL teams enter the equation and offer a tangible solution. From the analytical side of the equation with reporting infrastructure, cloud-based computing assets and software program insights, participants are able to communicate, report and inform their decision-making on essential information. The same principles apply with freight systems for error-free transport and storage.
3) Improved Time Management
Enterprises will look to outsource some of their operation through a third-party logistics contractor because they are masters at the field of time management. While other organisations struggle to get on top of their scheduling requirements, these practitioners are all about driving greater efficiencies. While competitors struggle to gain control of their own operation and overlook key details due to time constraints, this is a pathway for focusing on what matters as they delegate tasks and allocate resources without wasting time.
4) Pushing for Commercial Expansion
Outlets that have the ambition to do more than survive will see the key benefits with 3PL teams, most importantly for their expansion targets that can be in play. With more money in their pocket and stronger capabilities to reach new markets, there should be no reason why enterprises look beyond the here and now. If those aims are in play for a brand, then this partnership will be worthwhile.
5) Retaining More Customer Support
It is easy to talk about the trajectory of a supply chain business in purely financial terms, but that will often be a reflection of the image that is showcased with the brand. There will be a need to ensure safe delivery and clear communication with customers who want to know that their money is placed with the right provider. By using 3PL teams, companies have the capacity to retain more customer support and ensure that they have a foundation of success with their consumer base.
6) Scaling Agreement Terms & Objectives
The joy of hiring 3PL teams for supply chain members is that they don’t have to be stuck and confined about the terms of an original agreement. Every business knows that circumstances and objectives change, whether due to internal or external events. This is where a scalable agreement can be formulised, ensuring that the company is able to adapt to changes and remain robust and versatile regardless of what changes.
Summary
Supply chain brands that are able to see the value with 3PL teams will accelerate performance across a range of metrics. A simple conversation with these representatives will be illuminating. Take the time to see what they offer in real terms.