3PL, or 3rd party logistics, is a method of outsourcing one or more aspects of your company’s logistics to a third party company. Some people avoid 3PL because they don’t want the additional cost, but outsourcing logistics can actually save your company money in the long run - not to mention saving you time, energy and tons of stress.
Curious to learn more? Here are 5 of the most compelling reasons to work with a 3PL service.
3PL Saves Time
3PL companies have thousands of qualified carriers on their contracts, all with the flexibility to handle your freight. 3PL suppliers are able to scale back the number of infrastructure investments in instrumentality, software, facilities, and personnel. A quick call to a supply organizer allows them to pick out the simplest price carrier for each cargo. Working with a 3PL service saves your company tons of time, allowing you to focus on what’s most important.
Package Visibility
Most 3rd party logistics companies have available on-line tracking to allow shippers visibility of their packages. You can see how far your delivery has come and how much farther it has to go at all times so that there is no question about it making it to its final point on time.
Cut Back Workplace Duties with 3PL
3PL suppliers have the systems, manpower, and know how to deal with tons of bills each day at a much smaller cost. They will additionally audit all of the bills to be absolutely sure that all of the carriers are charged at the approved rates. This can be a real challenge for workers in your company and takes away a lot of energy and manpower from more important tasks. 3rd party logistics companies dramatically cut back on the headache of handling all the logistics and auditing details in your own workplace.
Liability
3PL suppliers can handle carrier contracts, DOT safety ratings, and insurance certificates much more efficiently than most shippers. 3PL’s always have a productive back office staff on hand that have SOP’s in place to assist with the carrier vetting method, work with carriers on invoice variances through auditing services, and manage the whole freight claims method. All in all, 3PL’s will make the legal side of your company’s logistics easier.
Utilize the Maximum Amount of Carriers
3PL firms have contracts with thousands of carriers, and understand the lanes wherever these partner carriers would like freight. If a shipper has consistent freight to multiple locations and regular lanes, the RFP (request for pricing) process will be initiated. Together with carrier compliance and trafficker compliance accomplished through the TMS, you can search through tons of carrier options and find the best choice for your budget and needs.
These are just 5 of the hundreds of reasons to choose 3PL shipping. Outsourcing your company’s logistics to a reliable 3rd party company will make a world of difference, and allow you to focus your resources on more important issues. Contact American Manufacturing Solutions today to get your 3PL logistics setup!
