You may be looking to expand your company, but you aren’t quite sure how you are going to scale your supply chain logistics to match your demands. You may already have a need to build up your manufacturing department, and can’t do that while also building out your logistics department. 3PL may be the answer that you have been looking for.
3PL stands for 3rd Party Logistics, and it means that you are going to be using another company that is experts in logistics, to manage the logistics of your supply chain.
This is going to entail elements of your distribution, your warehousing, and your fulfillment services. Rather than housing these parts of your operation under your own roof they are going to be taken care of by someone else.
This can free you up to concentrate on the manufacturing side of your business, and not have to worry about making sure your products get where they need to go.
Why Is 3PL Good For You?
There are a lot of reasons why 3PL is a great choice for any company, so we are going to have a look at why they might be right for you.
Firstly there is the question of whether you want to set up your own logistics section yourself, and if you are expanding whether you can scale the logistics infrastructure at the same time that you are expanding the rest of your company.
If not, this problem can definitely be handled by using someone that already has the facilities in place.
As well as the facilities, they also have staff that is trained to handle your logistics, and they have the relationships in place all along the supply chain, to ensure that your products are delivered on time.
Another great thing about using a 3PL company is that if there are any advances in the industry, they are going to be very interested in making sure that they keep up to date, so you are going to reap the benefits of them remaining on the cutting edge.
How Is 3PL Different From A Freight Forwarder?
When looking at the difference between 3PL companies and freight forwarders it might seem hard to draw the distinction, because there appears to be an overlap in what they do. There is.
A freight forwarder provides shipping services that get cargo from point A to B.
3PL companies do this, but they also provide storage, process inventory. They are often responsible for the whole process of fulfilling the order, dependent on what areas they have been tasked to run, but they are more integrated into a companies supply chain than a freight forwarder is likely to be.
When you employ a company to manage your logistics you want a company that is able to understand your warehousing needs, and the nuances of your distribution needs, and those of the supply chain as a whole. You also want a company that has the capacity to handle whatever you can throw at them.
American Manufacturing Solutions have over 70,000 square feet of warehousing at multiple locations, and they have a fleet of trucks that are always growing, so they are able to service companies nationwide. They will get to know you, and they will know your business inside and out so that they can provide you the best service and logistics support possible. For more information on American Manufacturing Solutions or 3PL, please contact us today.