Why Small And Large Companies Use Third Party Logistics And Transportation?
- Mar 07, 2017
Plenty of resources
A third party logistics provider will have a vast network, long standing partnerships and available resources that your company may not have. A logistics provider has a system in place to ensure it is cost effective and each step of transportation is executed with proper care. Having a workable system in place is not something every company can do. It takes time, effort and resources, and this is beyond the scope of work small companies are capable of doing.
Outsourcing your transportation to a logistics provider saves you time and money. It eliminates the cost of space, warehouse, technology, and staff to go from one point to the next. Also, if your staff is untrained in logistics and you probably have to pull them out of another job. This means there can be mistakes made, and costly ones during distribution. If you are a smaller company these will be costly mistakes and may be too much to bear. A logistics provider will have staff that work permanently on the job so they know exactly what they are doing. It is a higher return and lower risk working with a third party logistics provider.
A transportation company is an expert at what they do. They have the latest technology and viable software, and they are up to date with the newest trends and development. A logistics provider is capable of inventory management, advanced reporting and proper visibility. The correct inventory will be shipped according to the given date and time, not a minute too late.
A logistics provider will be responsible for shipment distribution. They know the process inside and out, which involves reporting, tracking, monitoring. From the moment the shipment is collected to when it reaches the destination, there is a workable system in place that shows the journey the shipment makes. This kind of network is feasible only to a logistics provider. It is not something you can try your hand at, it is too expansive and costly.
When you outsource transportation, you can focus on the core competency of the company. This allows you to concentrate on business goals, productivity and profit instead of worrying about questions like if and when did the shipment reach? Leave it up to the experts, they know what they are doing. You focus on what you know best, that is running your business!