For Tailor-Made Solutions, Consider a third party logistics provider

Posted on Jan 26, 2017 4:00:00 AM by Imran Kermalli

3PL.jpgPerhaps you’re in the throes of deciding whether to hire a third party logistics provider (3PL) or try your fortunes with multiple carriers? As we spell out in the ebook, “How to Keep Up With a Growing Business,” there are a number of factors that come into play as you narrow down your options.

  • Let’s face it, you’re too busy to spend time on the phone. And that’s what it takes to call and research a multitude of carriers to fulfill your shipments. Unless you consider yourself a negotiating whiz who revels in the back and forth, a 3PL has a leg up in this race. The 3PL takes rate negotiations off your plate, leaving you to enjoy the same rates as large companies without having to ship big volumes. How is that possible? A 3PL leverages aggregate volume savings so that you and other small businesses can take advantage of the most competitive rates.
  • Here’s another advantage of a 3PL partner: drop-ship capabilities. Your partner will be delighted to ship directly from the manufacturer to your customer, crossing off the need for warehousing and reducing wait times and costs in the process. And you’ll probably be thrilled to be eliminated as the middleperson.
  • But, then again, drop-shipping may not be your cup of tea, especially if your product consists of items from a variety of manufacturers. Cue a 3PL partner with a warehouse and an able team of pickers and packers, eager to meet your needs. Not only does it save a lot of time in labor, you also save money since your own employees can engage in other tasks.
  • Who doesn’t love personal attention? However, unless you’re a big-time customer, a national carrier won’t assign a dedicated account representative to help you out if problems arise. You can probably imagine the hassle of dealing with the claim yourself. A 3PL partner, on the other hand, is typically focused on the needs of small businesses and will take care of your claim from start to finish.
  • That tailor-made suit sure is a good fit. A fitted suit makes you feel comfortable and at your best. Now, picture having to buy a piece of clothing in a store that only offers a few random sizes. That is the difference between partnering with a 3PL and going directly to a large national carrier. The 3PL is there to build the most affordable and efficient shipping solution just for you while a large carrier cannot offer the same tailored services to a customer with relatively low shipment volumes.

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