Optimizing your transportation operation is so much more than moving freight at the lowest price.
There is long-term value in transportation management – organizing all of your logistics needs and requirements from beginning to end – and it is often achieved by turning to managed transportation services. By turning over logistics operations to a partner, a business can positively impact the supply chain.
Here are five core benefits to consider when using a qualified third-party logistics provider (3PL):
- Time to focus on other parts of the business
There simply isn’t enough time in a day to manage logistics and run the critical operations of a company. When you use a 3PL, the day-to-day execution, strategic recommendations and logistics operations are in the hands of a trusted partner and experienced supply chain professional. This frees up your time and expertise and your employees’ availability to concentrate on customers and business expansion.
- Improve Customer Satisfaction
A 3PL knows the logistics world and can come up with new ideas and strategies to further reduce costs for their clients, as well as deliver a better experience. Customer satisfaction is key and expectations are rapidly increasing in both the consumer and business buyer worlds. Amazon, 2-day and next day delivery is now expected. A 3PL, such as W.I.S. Logistics, can help manage these expectations, but also deliver with a variety of offerings that meet your customers’ unique requirements, including challenges involving delivery speed, information flow, visibility, and delivery accuracy.
- Minimize overall costs
Outsourcing transportation helps companies lower their overall costs by leveraging the capabilities of a 3PL. There’s no need to hire internally, which means no paying a salary, benefits and the cost of investing in logistics infrastructure. The ROI from a 3PL comes from their expertise in many areas of logistics:
- Optimizing transportation planning
- Sourcing capacity
- Negotiating more favorable rate agreements with carriers
- Reducing workload for employees through process automation
Updates in technology and access allow 3PLs to leverage the power of analytics and reporting to see trends and discover ways to spend smarter. Third-party logistics companies can use their economies of scale to negotiate better rates for shippers and help sustain long-term savings.
- Greater flexibility and better technology
Logistics technology developed by 3PLs drives supply chain efficiency, cost savings, and visibility. This data flow provides supply chain visibility and can help transform and grow a business. You gain access to these resources when you partner with a 3PL. Most providers, like W.I.S. Logistics, have a Transportation Management System (TMS), which supports your operations and provides access to tools that many could not afford on their own.
- Reduced liabilities
A 3PL will manage all of the interconnected carrier contracts, safety rating and insurance contracts. W.I.S Logistics even has a Core Carrier program that has higher standards than the U.S. Department of Transportation. Our staff handles invoicing variances, carrier vetting processes, and more. All of the “grunt work” is handled by the 3PL, so there are no liabilities for you.
Logistics services are critical for any business involved in transportation. Managing this set of operations on your own is often complicated and a heavy burden, especially when you have 1,000 other tasks to complete. As we’ve shown, contracting out logistics services requirements to an external service provider can prove to be a wise decision.
If you are interested in learning more about how a 3PL can help you with your logistics need, please contact us today.