Considerations for Using 3PL Companies

Third party logistics (3PL) is a range of services and processes offered to an organization by an external company for several reasons. The reasons can be to improve efficiencies, lower costs, or expand capabilities. 3PL services are geared towards the individual needs of a business.

Third party logistics companies offer any range of services having to do with supply chain logistics. These can include picking and packing, transportation, warehousing, order fulfillment, inventory forecasting, and freight forwarding. Below are benefits to consider using third party logistics companies.

Save Money and Time By Outsourcing

Using a logistics service provider will save a wealth of money and time for your business. Imagine being able to eliminate the need for investing in a warehouse space, transportation, technology, and workers to execute the logistics process.

Third party logistics services can save you from expensive mistakes. It also enables your company to operate a global logistical network with minimal risk, reduced costs, and ultimately higher profit. Third party logistics companies will handle your planning, booking, audits, paperwork, staffing, and optimization required to get your shipments where they need to go, on time and within budget.

Flexibility and Scalability

Third party warehouses offer the ability to scale labor, space, and transportation per inventory needs. Companies with seasonal periods can benefit from stress-free transitions between the sector up and downs. This enables them to utilize more space and resources when required. Using a logistic service provider allows your company to grow into new areas without any barriers. 3PL services have centers of distribution and warehouses strategically located to enable quick shipment of goods anywhere in the globe. The decentralized distribution provides reduced costs and offers faster delivery times.

Continuous Optimization of Supply Chains

Third-party logistics services have the tools needed to restructure the supply chain. They have the usability of technology that will make sure the proper quantity of goods arrive where and when you require them. 3PL services help ensure your logistics process is continuously improved. They can help lower wait times, improve customer service, and maximize profits

Gain Expertise

Companies working with 3PL services can gain valuable insight into potential problems during shipping. It enables you to make connections in the sector, learn how to streamline processes better, and more. For e-commerce companies with international business, working with third party companies also get rid of the stress of trying to learn and concur with international shipping laws

Leverage Technology

3PL services offer leading technology in the industry to enable transparency in the processes. You can keep track and view your shipments, and get access to a portal that offers real-time results. You will get updates that relate to routes, inventory, and delivery.

When in need of a 3pl logistics company, OctoChem has you covered. For more information, contact OctoChem today.