Benefits of Using Third Party Logistics to Tackle Supply Chain Problems
Supply chains are complicated organisms. There are a lot of moving parts, and sometimes one or more of those parts can cause real problems in an organization. Third party logistics might be the solution.
Technologies are Already in Place
Third party logistics providers tend to have well-tested and effective technologies in place to handle every aspect of logistics. They can integrate their systems with your current systems, making operating your business intelligence tools, transportation management systems, procurement software, and other programs easier and more effective.
Resolve Warehouse Space Shortage
Warehouse space is a finite thing. If you’ve got more inventory than you have warehouse space, it can really put you in a bind. It means finding more space, which can be expensive, and quite frankly, it’s not that easy to find warehouse space right now with open warehouse space at an all time low. Despite that warehouse construction is occurring at a rapid pace, the demands for new space aren’t being met.
Contracting a 3PL to handle warehousing can solve the warehouse space conundrum without an expensive investment in a new space.
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Because it’s all they do and they handle logistics for many organizations, 3PL providers tend to be really good at what they do, and they’re experts in compliance. They can help you get your operations into shape so that you’re saving more and risking less.
Rigidity can be a big issue when it comes to logistics. You’ve got a staff in place that doesn’t flex in real time, which can lead to overspending when things are slow and a shortage of workers during busy times. A private fleet doesn’t flex. Warehouse space doesn’t flex, even when you don’t utilize all of it.
3PL can provide that flexibility, allowing you to pay for what you need, no more no less.
Third Party Logistics May Mean Savings
In many instances, third party logistics doesn’t just remove the hassle of dealing with your supply chain. All of the above-named factors can contribute to 3PL actually saving you money and improving your operating margin. If you’d like to see what Blue Grace’s 3PL services might be able to do for your bottom line, contact us at 1-800-MY-SHIPPING.