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Defining 3PL & What It Means To Your Business

Defining 3PL & What It Means To Your Business

An end-to-end view of the supply chain is a dream for business owners. Knowing where you're starting from and where you're going to be will tell you whether that dream is possible. In addition, understanding third-party logistics can help you make sense of fulfilling your goals for your company - for good. ​

The industry is huge, and it's constantly growing. First, however, let us say that third-party logistics doesn't refer to an actual third-party entity you are working together. Rather, it is a term used to describe how 3PLs handle your freight outside your network.

What is Third-Party Logistics?

Third-party logistics refers to outsourcing the transportation and distribution of goods to a third party. This outsourcing allows companies to focus on other aspects of their business without worrying about getting products from point A to point B.

Third-party logistics (3PL) providers can help companies with various logistics needs. If you have outgrown your current shipping methods or need more flexibility, this could be a good option.

Why Outsource Logistics?

Companies can outsource logistics because it allows them to focus on what they do best while still achieving high levels of customer satisfaction through timely deliveries. By outsourcing logistics, businesses reduce costs and increase efficiency by letting someone else do all the heavy lifting. At the same time, they focus on other parts of their business that require attention, such as product development or marketing campaigns.

In addition, The right third-party provider can provide specialized expertise and knowledge that would be difficult for most companies to maintain internally over time without significant investment in training and development programs.

Knowing When Your Business is Ready for a 3PL Provider

Before you hire a 3PL service, it's important to know when it makes sense for your business to do so. The first indicator is when your business is growing rapidly, the existing logistics infrastructure may not be able to keep up with demand. A 3PL provider can help you scale up quickly by increasing capacity or by providing additional resources like labor or equipment.

If your company has multiple warehouses or delivery locations around the country, managing inventory across those locations can be challenging without an established system in place. A 3PL provider can efficiently manage inventory across multiple locations so that each location has what it needs when it needs it — regardless of where it comes from or where it goes next. In addition, some of the features help ensure that orders are picked up accurately and delivered on time.

What 3PL Means for Us At AMS

At AMS, we have specialized expertise in certain areas of logistics, such as international freight forwarding, hazardous materials handling, and more. These services are often too complex for most companies to handle on their own — especially those we deal with daily.

AMS provides 3PL services to many customers who have complex shipping requirements or need help managing their supply chain. Our 3PL solutions are designed to meet the specific needs of our customers and provide them with competitive advantages in today’s competitive marketplace.

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