When the customer base of a company increases or they expand into new locations, it may need to reconsider its transportation policies. Instead of relying on an in-house solution, it becomes essential to look for another exterior option. This is when 3rd party logistics companies come under consideration.
What Are Third-Party Logistics?
Third-Party Logistics, commonly shortened to 3PL, consists of a variety of diverse processes and services provided to a company by a 3rd party. The rationale behind such a choice is generally based on economics and operational considerations. Companies turn to external logistic and supply chain management to ensure safe, economical, and reliable services.
Services Available from 3PL Providers
Major 3rdparty logistics companies offer various logistic services. The leading companies across North America offer the following services to their customers.
• Transportation and Shipping Coordination
• Order Tracking
• Communication of the status of the cargo’s using the customized care
• Inventory Management
• Order Packing
• Value-Added Services
• Returns Processing and other types of reverse logistics
• Customer Service – This service is primary to ensuring everything goes right at both ends of the cargo shipment and transportation system
• Customized solutions – Major 3PL providers are always ready and willing to offer custom solutions to their customers
In addition, logistics companies offer their skills and assistance for international shipments. This envelops such aspects as expertise on packing, shipping, customs, and delivery. They always have at their and your disposal technological proficiency, experience, and skill.
Why Employ 3rd Party Logistics Companies?
Companies choose to go the third-party logistics route for any of many reasons. It may be the result of growth surpassing facilities? It could be the cost of investment in vehicles, training, and equipment. Overall, employing 3rd party logistics services saves money. It helps a company meet its obligations by delivering goods on-time, and intact with prices as advertised.
