How To Use a 3PL in Your Supply Chain Management
Before you hire a 3PL to help with your supply chain management, it’s a good idea to understand how they can help. A 3PL is a third-party logistics company with the ability to help with supply chain management. When you want to outsource your logistics, you’ll likely be seeking a 3PL.
While the services provided by a 3PL will vary from one to another, some of the most common options include:
- Inbound freight
- Order fulfillment
- Customs consolidation
- Freight management
You may require some or all of these services, but is a 3PL the right choice for your supply chain management?
Who should hire a 3PL?
Hiring a 3PL will provide a way to enhance your customer service. Since you’ll be able to tap into the 3PL’s vast distribution network and expertise, importing and exporting goods becomes much easier.
However, a 3PL doesn’t fit for all companies and won’t provide benefits for every business needing to ship goods. Smaller companies often don’t gain many benefits from a 3PL because they don’t have a large enough logistics structure to justify the cost.
Mid-sized and larger companies, along with some smaller, growing companies will benefit from a 3PL. In most cases, outsourcing supply chain management will free up time to grow the business providing cost reduction benefits and other benefits.
Some companies may find a 3PL doesn’t provide benefits, however. They may feel a loss of control or a lack of contact with clients; especially if they choose the wrong 3PL. Partnering with the right 3PL, such as ArdentX, can help to ensure you don’t feel out of control or out of touch when outsourcing our logistics.
How a 3PL can Benefit Your Supply Chain Management
There are many ways you can use a 3PL in your supply chain management. In some cases, you can outsource your entire supply chain management to a 3PL to gain maximum benefits. Some of the benefits of using a 3PL include:
- Cost Reduction – A 3PL will have a large network of carriers and they know how to negotiate rates. You’ll benefit from their relationships and likely save money compared to finding the carriers yourself.
- Trusted Expert Handling Your Logistics – A good 3PL provides an expert in logistics for your supply chain management. You’ll gain expertise and experience at a fraction of the cost of hiring an expert to work for you in-house.
- Scalability and Flexibility – With a 3PL, you gain many benefits for your supply chain including the ability to scale your business up and down, as necessary. Even if you have a busy season, you can count on the scalability and flexibility of a 3PL.
- Better Customer Satisfaction – Maybe the most significant benefit of hiring a 3PL is the customer satisfaction you will gain. With better service and response times, along with timely deliveries, you’re customers will be happier with their overall experience.
There are many ways to use a 3PL in your supply chain management. From completely turning over your logistics to gaining help with moving goods, you can count on the right 3PL, like ArdentX, to provide many significant benefits.