There are many benefits of using a 3PL provider for your business, such as cost savings and increased efficiency. It's one of the best ways to help ensure maximum profitability for your business. As you can see, using a third-party logistics provider is an important decision that every growing company should consider.
But before you make any decisions about changing your current supplier or starting to use one now, you must understand what they do and how they can help.
What is a 3PL and is it good for Yard Management?
3PL is simply an acronym for “third-party logistics”. They are companies that provide transportation and warehousing services to other businesses, which means you can outsource all of your transportations needs without having to go through the hassle of hiring a team yourself or purchasing expensive equipment.
What's more, their services are available to small and medium-sized businesses, so you don't need a Fortune 500 company's budget. A common misconception about 3PL companies is that they deal with overseas shipments only - this couldn’t be further from the truth!
We can handle domestic as well as international freight forwarding needs no matter where your products end up. It’s great for yard management as well.
Why should I consider using one for Yard Management?
You can have your products picked up within hours or days, meaning you don’t need to worry about delaying shipment. It also allows you to choose the best time/method of transportation, which means that sometimes it may be more convenient to use rail instead of trucks depending on how many units are being shipped at once.
This also enables companies who work with perishable goods such as food distributors or those whose items require special handling (e.g., fragile glassware) from missing out on business opportunities because they couldn’t meet strict delivery deadlines due to their limitations in regards to storage space and equipment availability
How does gate processing work for Yard Management?
Gate processing works by taking advantage of a company’s downtime to process each package simply. This means that instead of requiring an entire truck or rail car to be devoted strictly to be able to do this, companies send out trucks when they have free time and can perform their duties during these times if needed and also to help with the overall process.
Companies need to consider the gate processing services that are available to meet strict deadlines and maintain customer satisfaction levels.
A company cannot afford to miss out on business opportunities because they couldn’t meet these requirements due to their limitations in regards to storage space or equipment availability.
What are the benefits of Yard Management?
The biggest benefit is that it saves money on transportation costs because you don’t need as many vehicles going back and forth from your facility.
Also, since there isn't too much human labor involved at any one point during gate processing, it makes quick work out of incoming units which not only enables customers who use this service to get what they want faster but also frees up space within a warehouse.
What is Gate Processing? How does it work for Yard Management?
Gate processing (also known as line haul) occurs when goods arrive at their destination and get transported from point A (the warehouse where they were delivered/stored) to the delivery location (point B).
The key here is that these products don’t need any additional storage; however, gate processing requires vehicles such as trucks and trailers to move large quantities efficiently.
What are the limitations of Yard Management?
Like any service, there is always room for improvement and that's true in this case too. To begin, it’s not ideal if you have large items because they will be difficult to fit through tight spaces.
Also, gate processing requires an open door policy so customers who use this type of service need to keep their facilities unlocked during all hours of operation.
You may lose some storage or production capacity depending on what your facility looks like now and how much area you allocate toward each activity at different times throughout the year when compared against one another (warehousing vs yard management).
AMS has grown from 10,000 sq feet to over 70K. We are one of the fastest-growing 3PLs in North America because we offer a complete solution that saves you time & money.
All of this, while providing space solutions for your company’s needs! Give us a call or visit our website over at American MFG Solutions and let’s get you on the right track. Contact Us Today!