Partnering with a third-party logistics provider comes with many advantages that can significantly benefit your business. By bringing in a 3PL, you get to offload and outsource your supply chain management. This means everything from inventory to fulfillment to distribution is now put into the hands of experts.
Having experts handle your logistics and supply chain management can help run things more smoothly and efficiently. Here are some benefits from having a 3PL provider.
Save on company costs
Arguably the biggest advantage of partnering with a third-party logistics provider is saving time and money that would be spent investing in all aspects of logistics yourself. There are many ways having a 3PL save you on costs including:
No investments have to be made. With a logistics company at hand, you won’t have to worry about getting a warehouse, transportation, or hiring a team to handle the logistics.
Fixed costs are now variable costs. You are not restricted to a specific warehouse that you may feel expected to fill with inventory at all times. With a 3PL provider, your inventory fluctuates along with your costs depending on your forecasted sales.
More inexpensive with a 3PL provider due to large-volume projects. Transportation costs can reduce from 5%-25%
It also helps prevent any costly mistakes or issues that may come up when putting together your own logistics and executing your supply chain.
Read some of the most common logistics mistakes
Have additional time to invest elsewhere
Let’s not forget how precious time is in every business. By outsourcing your supply chain management, you will save a lot more time that can be invested elsewhere. Investing and setting up a logistics system is not only costly but it can also be very time-consuming. In addition to the time spent setting everything up, a lot of time would have to be spent daily to manage your supply chain.
Unlock the network and knowledge your 3PL provider already has
Your third-party logistics providers are experts in the field. Having already established a logistics network, they are the gate to unlocking all the knowledge and connections you would require to fulfill your logistics.
Additionally, 3PL providers stay up to date with any important updates, trends, or disruptions in the logistics industry. 3PL experts will also have more up-to-date logistics technology to bring more efficiency to your supply chain.
Scalability and flexibility
With a 3PL provider, your company can scale according to your inventory needs. You are not constrained to a set space as you would be with your own warehouse. Or vice versa, you do not have empty shelves in comparison to your level of inventory.
3PLs can often move with the rhythm of your business. If demand fluctuates or you have peak seasons, 3PL can move more flexibly with you as opposed to running your own logistics. Additionally, partnering with a 3PL provider can provide aid when you grow and move into new regions.
Ensure customer satisfaction
Having a 3PL provider can help improve fulfillment accuracy significantly which results in higher customer satisfaction. Eighty-six percent of shippers say that using a 3PL helps improve customer service. 3PL helps ensure the fastest and most efficient service for your customers.
3PL providers also help with customization to help promote your brand consistently and effectively among your customers. Build stronger customer loyalty and brand recognition by personalizing your deliveries. Learn about our different services that help with finishing.
Get started with Envoy Networks as your trusted 3PL provider!
Third-party logistics providers such as Envoy Networks can help guide you through your logistics journey to achieve your company goals. Save the stress of costs, time, customer fulfillment, and more by partnering with a 3PL provider.
Talk to a logistics expert today to learn how we can best suit your business needs.