3PL - How Third-Party Logistics Will Help You Grow Your Company

3PL - How Third-Party Logistics Will Help You Grow Your Company

Third-party logistics, known as 3PL in shorthand, is when a business or organization uses third parties as part of their supply chain, distribution, warehousing, or fulfillment processes.

 3PL is used by Fortune 500 companies and major organizations across the globe in order to help them be more agile and focus on what they do best, while allowing third parties to focus on what they do best.

This method, while difficult to implement, can save your company valuable time, money, and resources, so that you can grow exponentially and serve a broader consumer base.

Are you ready to know more about 3PL and how to make it work for your organization? Keep on reading.

What Is A 3PL Company?

What Is A 3PL Company?3PL companies typically specialize in warehousing and shipping logistics, allowing you to make more product and ship it faster than you ever thought possible. These companies work hard to ensure that your product is stored properly, shipped efficiently, and transported from your factory lines to their distribution centers with ease.

Some 3PL companies will also go so far as to provide and implement packaging for your product, so that your assembly and production lines can focus on the product themselves, not producing packaging for the products.

The most inclusive 3PL companies will take over the entire logistics division of your company, integrating themselves with your company in order for you to become more efficient.

Does My Company Need A 3PL Provider?

Third-party logistics companies can be integral to your business’s growth and success, particularly with the rise in direct-to-consumer shipping and eCommerce. As your company continues to grow, it can be difficult to manage the logistics of transportation, warehousing, packaging, and shipping. For most companies, these simply are not their area of expertise, so it is wise to hire a third-party logistics provider that can do these things more efficiently and already has the network established to do them at a lower cost.

However, not every company is currently at a stage where hiring a 3PL is going to be vital for them. If your company is only shipping ten orders a day, for instance, you simply do not yet have the volume to make a 3PL worth the time and effort it would take to implement it and give you savings.

However, if you start to get to 20 orders a day, that is enough to begin to consider hiring a 3PL. At the end of the day, doing a cost analysis and seeing how it affects your margins, as well as the opportunity cost of keeping your distribution in-house, is going to be the vital step towards deciding if a 3PL is right for you.

How American Manufacturing Solutions Is The 3PL For YouHow American Manufacturing Solutions Is The 3PL For You

American Manufacturing Solutions can handle the warehousing and logistics of your product from start to finish. They provide services to customers nationwide and are truly the experts when it comes to North American freight. If you need your product to be stored and transported, American Manufacturing Solutions is the 3PL for you. Contact Us Today!