3PL Logistics Company
A 3PL logistics company is an essential part of today’s commercial marketplace. Third party logistics companies, or 3PLs, are third parties that provide transportation and distribution services to businesses.
In the past few decades, they have taken over from what was once a role exclusively played by manufacturers in the supply chain.
The need for these types of service providers has grown exponentially with globalisation and increased trade competition. They offer many advantages to both giant and small business units.
What are 3PL logistics providers?
A 3PL logistics company provides a business with the ability to focus on its core competencies, and 3rd party logistics providers handle all aspects of a company’s shipping needs.
3PL companies offer an array of carriers, providing customers with the best rates for their particular needs. They also provide value-added services that save money, like truckload consolidations and trailer-only shipping options.
Products will flow through inventory more quickly when a third party handles warehousing duties, freeing up time for other important tasks within your organisation.
A good 3PL partner should create custom solutions based on changing market conditions or customer requirements.
How can third-party logistics help your company maintain an efficient supply chain and lower cost?
The following are the key benefits of third-party logistics:
Third parties provide an outsourced solution to help businesses meet customer demand at a lower cost rather than maintaining in-house operations.
With globalisation comes increased competition among companies, which means that all major players need to keep their costs down to compete effectively on price.
Large firms must continuously be mindful of supply chain constraints such as capacity or time efficiency; however, these limitations may not apply when they partner with a provider who can scale up or out without any additional investments.
- Disaster recovery
The reality is that disasters happen, and when they do, a business needs to be able to recover quickly. Third-party logistics providers offer disaster recovery services so that when an unfortunate event occurs, the partner can adapt quickly in order to resume operations as soon as possible.
- Time savings
By partnering with third parties, businesses are no longer required to spend time on supply chain functions such as distribution or fulfilment, which means more time will be available for other strategic priorities like marketing or product development.
- Cost savings
Third-party logistics providers offer more than just the transportation of goods. They also take care of warehousing, inventory management, and tracking systems which cut down on costs while increasing efficiency.
- Ease of use
The beauty in partnering with third-party logistics is the ease of use. These partners are experts at managing complex supply chains, minimising errors and disruptions that make them ideal for any business unit, regardless of whether they are small or large.
How to pick a suitable 3PL company?
Selecting the right 3PL logistics company for your organisation is an important decision that should not be taken lightly or without understanding what’s involved. There are many factors businesses need to consider before selecting their 3PL partner, such as:
Experience: 3PLs that have experience in providing 3PL services to many company types and industries will be able to offer insights on what 3PL services are best for your organization.
Service offering: A 3PL with a wide range of 3PL offerings can provide the flexibility needed by organisations looking for one-stop solutions.
Competitive price: The cost involved when outsourcing various aspects or all parts of an operation can vary significantly from one 3PL provider to another. It is important that businesses understand their total expenditure before making any final decisions.
Reputation: 3PLs looking to establish themselves as a reliable 3PL provider will need an impeccable reputation and proven track record.
Bonded: The ideal 3PL logistics company is bonded or has insurance in place for any liability incurred during the course of their 3PL service.
Size: 3PL providers who are agile can quickly scale their 3PL service to a company’s changing needs.
Knowledge of industry trends: The 3PL provider you choose should be knowledgeable about today’s most recent trends in manufacturing, distribution, logistics services, transportation, and warehousing.
Execution: For your 3PL plan to succeed, all aspects must be correctly executed according to specific timelines. A good 3PL partner should offer extensive experience executing complex supply chain operations successfully on time.
How can 3PL logistics company help in growing my business?
A 3PL company can help you grow your business by improving efficiency in 4 main areas:
- Operational efficiency
A 3PL logistics company can streamline operations to make the most out of each square foot of your 3PL warehouse space.
- Vertical integration
3PL providers can offer a more complete range of services, from warehousing and distribution logistics to transportation and last-mile delivery.
- Shipping profitability
3PL companies offer an array of carriers, providing customers with the best rates for their particular needs. 3PL logistics also provide value-added services that save money like truckload consolidations and trailer-only shipping options.
- Inventory management
Products will flow through inventory more quickly when a third party handles warehousing duties, freeing up time for other important tasks within your organisation. A good 3PL logistics company should create custom solutions based on changing market conditions or customer requirements.
Invenco is one of Australia’s leading 3rd party logistics providers. We offer a complete range of 3PL services to meet our customer’s needs, from 3PL warehousing facilities to bespoke solutions that can be tailored specifically for your requirements.
With Invenco as your partner, we will handle every aspect of your supply chain, from warehouse facilities and 3PL warehousing to freight forwarding, customs clearance services, and international transport management.