Every company focuses immensely on maintaining a good customer retention rate. After all, an acceptance of an organization’s products & services across the masses sets the tone for how the enterprise gets its market share. One of the crucial aspects of maintaining a good repertoire amongst the user base is ensuring timely deliveries of goods under the defined timeline. And that requires a proper sync in supply chain activities, from inventory management to storage to picking & shipping of the products.
While keeping parity across supply chain stakeholders & their operations can be challenging, organizations, in order to manage the scale of their logistics, employ 3PL services. Third-party logistics, by definition, are external distribution centers that cover the entire order processing from picking to shipping and receiving. A comprehensive third party service generally covers end-to-end requirements for a company by duly keeping a tab on the defined parameters of cost & time.
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Advantages of Third-party Logistics
What Are the Key Advantages of Third-party Logistics?
Outsourcing supply chain distribution to a third party service allows an enterprise to be scalable, efficient, cost-effective & hassle-free from all the nuances of planning & executing a warehousing action plan. In this write-up, we cover all the beneficial virtues when signing up for a new 3PL partnership.
1. Saves on Operational Cost
Managing an in-house distribution network requires standalone management of its own and sets prerequisites for initial capital investment, which can be too big an ask for an organizational setup, especially for SME industries. In such cases, partnering with a 3PL vendor proves immensely beneficial as their crucial responsibility includes funneling down costs without impacting the work's merit. The critical attribute of partnering with a third party logistics contributes to saving big on transportation costs as an external partner generally has many carriers in the network, allowing more room for negotiation while keeping the industrial shipping standard intact.
2. Planning & Execution Through Experts
When onboarding a 3PL carrier, an organization revels in the fact that it has employed warehousing experts to carry out its business-as-usual activities. From aligning various stakeholders from transportation to documentation to ensuring every transaction is accountable with the required compliance structure to applying the best-standardized practices – specialist can leverage their years of experience to chart out the best way to optimize the present resources towards profitability. Not to mention, such virtuosity is particularly important when scalability prospects are in sight.
3. Better overview of SCM
With experts leading the charge in the day-to-day warehousing tasks, the management of an organization can lead its principal attention towards other processes which require much more core competencies from the perspective of the entire supply chain management. With internal resources free from warehousing accountability, a company can better focus on other equally important aspects of the business.
4. Better Positioned for Growth & Expansion
When one of your key areas of the supply chain (read: logistics) is taken care of, the company can repurpose its effort towards scaling its growth for betterment. With quick response to seasonal demands & user-placed orders, an organization can set order fulfillment targets for its 3PL partners who can navigate the challenges and the resources required to achieve their shipping goals. Offering flexibility during the sudden surge of demands, an outsourced vendor dutifully manages logistical nuances ranging from the workforce to transportation. The added advantage is that even if an enterprise sees a dip in the order influx, it doesn't have to fret over the infrastructure as it's entirely handled by the third party partner.
5. Proactive Risk Management
Since third-party logistics overviews every warehousing action undertaken, they are equally prepared to nullify any potential disruption which might get caused during stages of product shipping. With years of experience handling bottlenecks, 3PL personnel ensures no productivity loss occurs by keeping every stakeholder of the process informed of the contingency plan. Such a quick response to an impromptu situation sets the hallmark for a marquee external warehouse handler.
6. Optimized Network
An external logistics vendor prioritizes the maximum output of the supply chain with minimum capital investment. And, with their diverse network across demography covering shipping companies, workforce, fleet contractors, etc., a 3PL operator directly impacts the cost of business operation with its inter-connected matrix of verified & reliable supply chain consultants.
7. Higher Customer Satisfaction Metric
The crux of any business is to maintain a high customer retention rate & keep up with the user satisfaction metric. For all the efforts put in by the management of an organization, the ultimate barometer for success is how receptive the audience is to the enterprise's services. Collaborating with a 3PL partner ensures timely deliveries of the ordered products, leading to better customer response and organic reach toward new user acquisition.
With such a multi-functional approach, partnering with a third party operator can prove to be a profiteering move from a business perspective. Offering comprehensive services from warehousing to shipping with complete regulatory compliance & timely adherence to delivery targets – an external collaborator holds the potential to drive an organization's revenue to the north. 3SC, with its 3PL services, tick-off all your end-to-end logistical needs with aplomb while ensuring that all the key performing metrics are aligned amongst stakeholders for better optimization & efficiency of operation. To know how 3SC's third-party logistics services can benefit your supply chain processes, contact us now.