Third Party Logistics & Its Importance

Choosing the right third party logistics provider can be a difficult decision, especially since they are pivotal for retailers who want to achieve seamless and efficient strategies for their business. So let us help you delve into details for easier understanding of the importance of getting a 3PL.

What is a Third Party Logistics Provider?

Also called a 3PL, these are companies that offers outsourced logistics and supply chain management to other businesses. It may be a single provider, such as transportation or warehouse storage, or it can be a systemwide bundle of services.

Why do companies deal with 3PL providers? 

Outsourcing supply chain services to third party logistics providers give businesses the ability to focus on primary functions and their core competencies. Forming these business partnerships allow retailers and manufacturers to easily expand operations while increasing efficiency and reducing costs.

Why do you need to use and maximize on 3PL providers?

  • Cost and time savings – not having to maintain your own space and inventory can be a big cost saving measure. 3PLs can also negotiate better freight prices.
  • Market expansion – the advantage of working with a 3PL provider is having access to distribution centers and warehouses in various locations. It also allows companies to grow in new areas by being able to ship goods anywhere efficiently
  • Business growth – working with a 3PL provider helps you focus more on growing your business because you have a team of experts to manage your logistics and supply chain management for you. This also means that once your business starts to expand, you will already have the expertise and resources that you need
  • Capacity advantage – 3PLs give you access to the capacity and required equipment. They’re sure to support your freight volume
  • Expertise – 3PL’s have expertise and thorough industry knowledge, and they can accurately forecast what will work best for their customers. They have the technology that is able to produce advanced reporting and inventory management, tracking the entire logistics process

A 3PL is there to handle all of the heavy-weight logistics stuff for you.

At Ernest Logistics Corporation, you are sure that we can efficiently manage your company’s logistics operations in a productive and cost-efficient manner through our transportation and freight solutions. We understand that proper logistics and supply chain management is for your business’ overall success.

ICT Admin

Ernest Logistics Corporation