Are Third Party Logistics Companies Worth It?

by Michael Kotendzhi | Logistics
Are Third Party Logistics Companies Worth It?

The Benefits of Third Party Logistics CompaniesIf you have been doing business for any significant amount of time, you understand the importance of having a clean operational logistics team. From warehousing product correctly to shipping efficiently, there are a number of warehousing and distribution methods available. Whether it is warehousing for food storing or for any other type of product, in order to scale a business profitable, the logistics needs to be air tight.

The Trade and Transportation Corridors Initiative shows that Canada understands the economic importance of great logistics. An impressive $2 Billion will be invested over the next decade into making Canada’s transportation infrastructure more efficient and effective.

So why would someone consider using a third party commercial logistics company? Commercial logistics companies specialize in one thing: the most efficient and effective way to warehouse and transport your products. Because we specialize in this, there are many benefits to outsourcing your commercial logistics.

Professional Supply Chain Expertise On Demand: We understand that you have more important things to focus on than shipping and warehousing. For us though, that is our entire business. The experience we have as a 3PL provider is great for you to know that you are getting the best source of industry best practices. We stay up to date with the latest advances in tech and developments in logistics, manufacturing processes, and distribution. This ensures that when we handle your inventory, it is effectively moving to each distribution center on time, and in the most cost effective manner. Beyond this, we use the latest and most advanced software to help improve the visibility of the supply chain, allowing you to monitor and track the process as necessary. Letting us take care of what we are experts at allows you more time to focus on your company core competencies.

Huge Network of Resources: Because we specialize in commercial logistics, we have a very strong network of companies who can help with the process from beginning to end. By leveraging our network, the steps in your supply chain can be optimized for the most efficient and cost effective process possible. Additionally, we are constantly looking to expand our network and will always be up on the latest in the industry to keep you with the best deals. Because of the volume of transportation we do, we can often get exclusive relationships and volume discounts for our clients, minimizing overhead and other transportation costs. These resources are usually unavailable for in-house logistics teams.

Free Up Time and Capital: Because of our ability to leverage relationships and our expertise in logistics practices, you will have a large amount of time and capital freed up to invest in other areas. There is no need for you to invest in warehouse space, staff, and transportation vehicles. We have it covered for you. In addition to the initial expenses, using a 3PL will minimize costly mistakes that are typically made by in house logistics staff.

Fully Flexible and Scalable Services: By nature, using a third party commercial logistics company will increase the flexibility and scalability of your business. We can easily scale up (or down) the amount of shipping and warehousing you need. Whether it is a large order of goods to get ready for the Christmas season, or you are simply increasing demand overall, we can help you scale your logistics needs as it becomes necessary for you. This is especially important for seasonal businesses who are continuously shifting between high and low times because it increases their business efficiencies. Lastly, this is also a great way to quickly scale your business into new territories throughout the country and the world.

Commitment to Continuous Improvement: Shipping and Logistics is what we do. We are committed to continuously improving our methods and processes. The technology in this industry changes fast, and it is important to always stay up to date with best practices and advancements in technology. We are constantly on the look out for how we can improve our processes to keep costs down for you and keep your warehousing and distribution as efficient as possible.

Give us a call today to see if commercial logistics is right for your company.

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.