Improve Supply Chain Management with Third-Party Logistics

Thanks to the versatile services they provide, third-party logistics companies (3PL) have grown to be an invaluable resource for businesses of all kinds in the past few years.  In response to globally expansive markets and volatile economic climates, many businesses are looking to 3PL companies to help improve their supply chain strategies, if not take over complete management of supply chain logistics. By doing so, businesses are trimming overheads and concentrating on formulating enhanced strategies to fulfill other core business initiatives.

Improving efficiency and providing complete customer service is at the core of supply chain management.  When a company is able to follow through on its promise to deliver inventory and products intact and on time, they save money and build better customer relations.

Multiple Services, One Partner

An effective 3PL provider has an extensive reach and offers a wide range of versatile and reliable services for businesses moving inventories and products over a long distance.  A third-party logistics company can contribute at every point of the supply chain, from order processing to warehousing and delivery.

In past years, while many industries were battling back recession, 3PL’s were actually increasing business, noted Supply & Demand-Chain, a leading online news source for supply-chain management.  They then went on to say that even shippers had begun to use 3PL companies as a supplement to their fleets and to add more warehousing space.

Handing off supply chain management to a 3PL gives businesses additional options through a dedicated provider who can deliver better results using proven strategies and tested processes. Add in an innovative warehouse management system and you have a supply chain management partner who can take the hassle out of processing in-transit data.  This information is important for the customer, shipper and business in that it answers questions to contract management and direct asset ownership.  Communicating these details can take up a huge amount of time and resources for a shipper or a business.  One big advantage of a third-party logistics company is its ability to centralize this reporting and share the correct details with the right stakeholders.

The flexibility of a 3PL company helps eliminate stages in the supply chain management process that would have previously burned up valuable internal resources and time.  As markets move and economies change, retailers and businesses are going to need to be able to respond quickly. Outsourcing supply chain management to a 3PL company is one of the best ways organizations tasked with delivering products on a wide geographical scale can lower overheads and be more productive while delivering optimal levels of customer service.