3PL stands for Third Party Logistics, which means that it is an outside company that specializes in the transportation of your product. Your company may be doing well, but you know that if you're not shipping products to the customer you're not making money. The problem is, there's a lot of work and investment required in order to get your product from point A to point B. And even though your current company is making money, you know that you could be doing better if your product was being transported by a 3PL.
This article will give you an overview of the different types of 3PL companies and the different things to look for, and also talk about outsourcing and how it's becoming increasingly popular in the industry.
Benefits of 3PL
Experience: this may not be as important if you're considering hiring a 3PL company to do long-distance shipping for the first time, but if you want to outsource your current 3PL needs it is extremely critical. You'll want to know what kind of experience they have with your industry and see proof that they've done the exact same thing that you're paying them fo. This also goes the other way. If you're currently using a 3PL company to ship your products, you'll want to see proof that they're shipping products for other companies as well. Even if you're shipping to one customer right now, it's good to know that they've worked on many projects with many different types of products before.
Price: this is more of the 2nd type of check, but it's still important. Your company may be able to cover the cost of shipping, but if they are paying more than what you are for shipping it may not make sense. It's key to know how much your current 3PL company is charging, including their full overhead costs, as well as all their expenses that aren't shipping-related. It may be hard to compare the overall cost of your products with what you believe is an accurate 3PL quote, but you should always know all the expenses they are not including.
Location: this is another 2nd type of check. You don't want to be shipping your products across the country on a type of truck that you know will break down easily, or if their locations are too far away from where your main point of contact is.
Value-Added Services: these are mostly for the new 3PL company option. When you're searching for a 3PL company, look for the special things they offer that your current company may not. You want to make sure that they can handle everything you need without causing you too much extra work. If they aren't offering anything new or exciting, it's probably safe to say that they know their job, but won't get too creative with their ideas during the process.
American Manufacturing Solutions - Your 3PL Answer
So is 3PL right for your business? If the answer is yes, you've come to the right place. American Manufacturing Solutions is one of the industry's top logistics companies, and they are eager to help you scale your business. Contact us today online or call us at 419-300-1007!
