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How Using a 3PL Can Save Big in Logistics Costs

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If you are ready to rein in transportation costs, according to Anthony Pagano, Ph.D., Director and Senior Research Associate at the Center for Supply Chain Management and Logistics, the University of Illinois at Chicago, a 3PL is the way to go.  According to Pagano, “They can save you money by determining which mode of transportation and which carrier is best for each particular shipment.”

3PL

What is a 3PL? A 3PL or third-party logistics allows companies to thrive with the ability to outsource everything they need to manage the supply chain.   The term which comes from the military involves logistic services or management of resources.

With a 3PL an organization has the option of outsourcing the management of resources and how they are moved to the right areas, allowing them to save cost and time. Working with a 3PL is creating a partnership; One that allows you to stay on top of industry shifts, and your profits.  No company is too small to work with a 3PL. On the contrary, they can help to prepare for and manage the growth of small businesses.

The Value of a Strategic Partnership

There is more to a relationship with a 3PL than simply outsourcing services and tasks.

They work for you and are invested only in your best interest.  Your success can only benefit them, so they will focus on providing you with the resources you need to thrive as a business.  The right third-party logistics partner has access to up to date technology and software that can be used to track inefficiencies.  3PL’s work with you by keeping you aware of what is not working and provide you with a plan to turn things around efficiently.

Great benefits of a 3PL partnership include:

  • Flexibility and Scalability
  • Great for seasonal businesses
  • The ability to keep up with changing markets and consumer demands
  • Quickly adapting to increase in warehouse space and shipping frequencies

Spend Only What You Need

For seasonal businesses or other organizations that need flexibility with spending, 3PL are a great option.  With the steady increase in demand for space, the ability to save time and money in warehouse space is one of the great perks of a third-party logistics.  Eliminating the problem of having too much or too little space means avoiding the pressure of moving from season to season unsure.

From the ability to flex the space used each month, to hiring and training skilled workers, with a 3PL you pay for exactly what you need and nothing more.

If shipping is an area you interested in saving time and especially money in, then considering a partnership with the right 3PL might be the right investment for your organization.  Allow the right 3PL to take over storage, packing, and shipping while managing employees to keep your shipping process running smoothly and efficiently.

Amware is a Cleveland, Ohio-based 3PL offering state of the art LTL software and robust public warehousing solutions. Click below for a free 30-day trial of Amrate, Amware’s cutting edge shipping software and see for yourself how using a 3PL can save you thousands.

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21 Feb, 17

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