5 Benefits of Using a 3PL Facility for Food Grade Logistics

by Michael Kotendzhi | Logistics
5 Benefits of Using a 3PL Facility for Food Grade Logistics

The food and beverage industry is responsible for 17% of total manufacturing shipments, and 2% of the national Gross Domestic Product.

If you need food grade logistics solutions for your company, you might want to consider hiring a third party logistics facility (also referred to as a 3PL).

The benefits and advantages of outsourcing supply chain management are numerous. The following are just a few of them.

1. You Become an Instant Logistics Expert

The biggest advantage of using a 3PL is that they’re experts at distribution and logistics. If they’re a reputable, competent company, then their staff are among the best in the industry. This kind of expertise is a bragging right that most companies simply don’t have.

You may be the best at inventing a specific type of food product, but it’s hard for one business to be competent at everything. So what better way to manage logistics and distribution than by outsourcing it to a company that specializes in that?

With a third party logistics provider, you get to hand off logistical concerns to people who do it all the time, and know the industry better than anyone else. This allows you and your team to focus your efforts on doing what you already do best, delighting your customers with great service and products.

2. You Get to Manage International Logistics Easily

If you sell product internationally, a 3PL will take care of all the documentation and issues that come up when dealing with customs and border control. This saves you from having to figure out complex distribution laws in foreign countries, and spares you the expense that can come with handling these kinds of problems inefficiently.

3. You Constantly Improve Your Supply Chain

Because you’re outsourcing to a food grade logistics facility, your supply chain will be evaluated, optimized, and improved constantly—without your having to lift a finger.

4. You Are Free to Scale Infinitely

By utilizing a 3PL, you’re free to expand your operations anytime there’s a spike in sales, without having to rush to rent another food warehouse or hire new staff. All physical challenges and paperwork are managed by the food grade logistics provider, leaving you to grow your business, with no need to worry about expanding too much too quickly.

5. Your Company Saves Money Over Time

By not having your own warehouses and stocking staff to deal with, you stand to save a lot of money—and time—by outsourcing to a commercial logistics facility. Storage, billing, auditing, staffing, training, and improving your supply chain are all taken care of by the provider.

For these reasons and more, it’s a good idea to invest in a third party logistics facility for your food grade logistics and distribution needs.

Michael Kotendzhi is President of Operations & Transportation and a partner at 18 Wheels. Michael has over 15 years of experience and is equipped with a degree in Logistics from the University of British Columbia Sauder School of Business. As well as a background in logistics from XPO Logistics (formally Kelron Logistics), North America's largest contract warehousing provider.

Michael's experience includes supply chain management, reverse logistics, & domestic transportation. He has developed 18 Wheels' trucking solutions, effectively utilizing the sister company's vehicle fleet and building a transportation supply-chain network across North America.