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3PL (Third Party Logistics)

Commercial Benefits When Using 3PL Firms

The services of 3PL firms empowers supply chain businesses to make the most of their resources and to maximise market opportunities. These benefits are not lost on those constituents who have used their assistance before, but it is an entirely new concept for owners and managers accustomed to being an in-house brand exclusively. We will take a closer look at the advantages of using these firms for specialised projects.

Customising a Unique 3PL Agreement

The good news for clients who are looking to use 3PL firms is that they can customise an agreement that works for their short, medium and long-term commercial interests. This will range from procurement procedures that allows companies to manage what they receive to transportation of stock, inventory control, storage and order fulfillment, there are various components in play that may or may not be involved in the process. If participants want to work with operators that fill in the gaps and adhere to their workplace practices, then they will seek the assistance of these team members.

Optimising Workplace Efficiency

The general practices of picking and packing, communicating with stakeholders, forecasting for orders, fulfilling orders and organising through freight forwarders opens up a lot of potential for lost time. This is why efficiency matters and why outlets will decide to partner with 3PL firms for this very reason. They will introduce resources that make life easier to manage and allocate tasks that reduce the operational time from department to department, freeing up more hours in the day.

Retaining Customer Loyalty

Using these logistics specialists becomes a major advantage for businesses that need to retain the loyalty of their consumer base, something which can be assessed on a number of tangible metrics. From same-day shipping programs to fast tracking orders and working through the reverse logistics demands of an organisation, they are able to carry the load when the company needs a reset. If they can make these upgrades possible, that will impress upon the customers that the brand is still worth doing business with.

Cutting Down on Financial Waste

3PL truck

There are costs involved wherever enterprises look across the supply chain. From inventory to storage, distribution to consumer interactions and communication with various stakeholders, every action and every decision could be calculated on a financial basis. The choice to use 3PL firms helps to reduce needless costs because they take a completely objective viewpoint on the business and how it can optimise revenue and reduce wasteful spending.

Lowering Brand Risk

The management of stock, the capacity for storage, the movement of goods, the partnerships with couriers and beyond opens up a brand to a lot of risk. In the event that something goes wrong, they are held liable, potentially shutting down an enterprise and sending ownership bankrupt. Rather than dealing with that stress, outlets will work with 3PL firms to bring the company up to speed, ensure compliance measures are upheld and deliver on insurance provisions that protect the interests of the organisation for the long-term.

Leaping Ahead of Competing Brands

A big driver behind the use of 3PL firms will be the strategic advantage it provides against the competition. Other outlets often don’t have the appetite, the foresight or the willingness to make a change with their supply chain protocols. Using their experience, leaning on their expertise and leveraging their resources already takes the brand to another level, just the tonic for a business that wants to impress upon other consumers.

Speak with 3PL firms directly about the business and the objectives. Talk with other references. Research their credentials online. Start the process with logistics operators because their insights and assistance will deliver tangible results where it really counts.

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