If you’re looking into the freight business for the first time and have gotten around to understanding some of the other terms, you’re probably wondering what 3PL is in relation to logistics as a whole. Logistics in freight transportation has a big hand in how goods are transported via freight trucks, and 3PL plays into the paradigm because it stands for third-party logistics.
3PL, or third-party logistics, is when the logistical planning of a business is outsourced to a third-party provider who takes care of all aspects of that companies logistics. When dealing with businesses, especially freight businesses, 3PL is used to outsource who handles storage and the shipments of goods. Here is a closer look at why you may want to use 3PL for your freight transportation.
Why You Should Use 3PL
Many people think that outsourcing their logistics to a third-party provider will cost them substantial amounts of money. It’s believed that you’ll spend more money than you would if you went through the hassle of sourcing your own storage and shipment for your goods.
This may appear to be the truth, but in fact, if you use a third-party logistics provider, you’ll save yourself money in the long run. The best part about using 3PL is the release of the stress of running your own logistics and the added benefit of reacquiring your time and energy for yourself and the other responsibilities you hold.
When To Use 3PL
The biggest factor to using 3PL is how much time it really does save substantial amounts of time. You don’t have to worry about accumulating companies that you must develop contracts with to help you transport your cargo from place to place. A third-party logistics company will take your cargo and put the proper parts in motion to get their suppliers on board to help ship your cargo at the lowest possible price.
You don’t have to worry about losing your cargo along the way because almost all of the available 3PL suppliers have their own methods of tracking your cargo while it's being transported. This will help keep your anxiety at bay and allow you to grow a trusting partnership with your logistics suppliers.
You won’t have to worry about creating, building, and maintaining relationships with multiple companies that provide the steps to successfully ship your cargo. You can let a 3PL find the right people to get the job done for you. Another benefit of using a third-party logistics company is that you may not always need the same amount of storage or shipment space and they can accommodate those changes. You may move with the ebb and flow of your market’s economy, and using a 3PL can help you scale by your needs to maintain a healthy budget.
Keeping a 3PL in mind when deciding how to manage your logistics is always a smart idea. Although you might not need one right away, a 3PL will always maintain the best standards that they can. Due to the competitive industry, the technology is always changing, and a good third-party logistics company will stay on top of these technological changes to better serve their customers.
At American Manufacturing Solutions, we can help set you up with the best logistics planning to help you strategize your shipping plans. Our experts are ready to handle your most important needs so you don’t have to burden yourself with the stress of logistical planning. Call us to start your 3PL consultation today!