Managing logistics as a mid-sized shipper presents many unique challenges. On one hand the demands placed on your distribution operation are likely very complex – similar to a bigger company. Yet, your leverage when it comes to negotiating freight rates or having a budget for tools like logistics technology is often limited.
Many medium sized shippers overcome these challenges by outsourcing to a third party logistics provider. Here are 3 ways a 3PL can help.
- Cost Savings
Minimizing cost while maximizing service is a top priority for most logistics operations. And, when it comes to freight, more volume translates to lower rates.
If your spend is $200MM or less per year, chances are a 3PL can improve your negotiated rates for Truckload, LTL, and small parcel. At this level of spend you probably recognize that volume improves buying power – now image the leverage a 3PL spending billions can provide.
- Access to the Best Technology
Every company shipping as few as 5 loads per day can benefit from a TMS – and the benefits only increase as that volume goes up. The problem is TMS technology is expensive and often too complex for mid-sized shippers to implement and pay for on their own.
The good news is that many 3PLs offer access to quality TMS technology and charge on a variable cost model where shippers pay only for what they use. The benefits of a TMS include load optimization, shipment tracking, reporting, and many other features to optimize cost and improve efficiency.
- Customer Service
Speaking of technology, a 3PL can provide other processes for managing shipment information that improves service to your customers like advanced shipment notification, delivery appointments, and track/ trace.
Better yet, a 3PL can be a single point of contact for inquiries from sales, customer support, or other departments – easing the burden on your logistics team.
When companies grow, the complexity and demands on their logistics operation grow even faster. As a medium sized shipper, it is important to know that many third party logistics companies are built specifically to help you overcome your exact challenges by providing the buying power and access to technology that will optimize your logistics operation.
If you want more information on how outsourcing logistics may help your business, grab your free copy of “Return on Logistics – Turning Your Supply Chain Logistics into a Competitive Advantage and Bottom Line Profits” at www.returnonlogistics.biz
