3PL - What is it and why is it growing?

3PL - What is it and why is it growing?

3PL is just the outsourcing of one or possibly more, parts of your supply chain. It can be the transportation of your goods, the packaging, warehousing, or even the assembly of your goods.

Essentially, any part of your supply chain that may need to be outsourced to the handling of another company. Specifically, a 3PL (third party logistics) company. If a third party, any company other than the shipper, or the carrier has a hand in the mix, it is considered a 3PL. It is easy to see why its on the rise. Many companies, as they grow, and demand for their good climbs, have reaped the many benefits from contracting a 3PL to meet one need or many.

Demand in many industries have climbed to new highs, and in order to keep up, and stay ahead, businesses are depending on a trustworthy 3PL provider to partner with them and meet their customers' satisfaction together. It is vital when seeking the help of a 3PLprovider that you find one that will deliver the same standards to your clients that you have worked hard to maintain. Imagine a client who has done business with your company for years, and brags on your quality to others. You have just received word they have recommended your business to their colleague, who has placed a sizable order upon the recommendation. You are in a position to grow, but need to find a 3PL that can handle the overflow. Find a 3PL that will match your level of standard, and represent your business well.

3PL Cost Savings

Moving forward with 3PL freightThere is one benefit that by far, out ways the rest, when it comes time to find a 3PL and the use of one. Cost Savings. Because demand can be unpredictable at times, using a 3PL can save you the cost of permanently adding staff, or even adding on a warehouse. The flexibility to scale when needed can also be a helpful tool when a business begins to grow. Outsourcing certain aspects of the supply chain can be the time and money saver that makes new growth possible for a companies future.

Online sales growths and the demand for faster shipping, at lower prices, has made an increase in the use of 3PL providers for most companies. In 2017, there was a report made by Armstrong & Associates showing that 90% of fortune 500 companies depended on the use of a reliable and trustworthy 3PL to keep up with the demand. When compared to that same report, from the year 2001, only about 46% of those same fortune 500 companies were using 3PL providers. The growth in Third-Party Logistics providers is growing along with the industries they serve.

American Manufacturing Solutions is proud to be among the 3PL providers serving Northwest Ohio, and work hard to maintain a standard of excellence that any business would be pleased to partner with. We also are a growing business and are excited to see how we can best serve you in warehouse, shipping, and package and assembly needs. Let us grow together.