Benefits of a Third-Party Logistics Provider

by Michael Kotendzhi | Logistics
 Benefits of a Third-Party Logistics Provider

With the growth of a company comes the increasing demand in the supply chain. According to recent research, trucking companies are used in close to two-thirds of Canada and the United States trade. Most of these trucking companies are asset-based third-party firms outsourced for commercial logistics.

Further studies show that nearly 81% of businesses assigned their transport needs. Large corporations take advantage of such services as they get time to focus on other sectors. Third-party logistics (3PL) offers customized additional support, including packaging, inventory supervision, warehouse storage, and shipping.

A competent third-party logistics provider is highly skilled and can quickly spot and fill any niche in a firm. Regardless of the amount of package you ship out, consulting a third-party firm can enhance the effectiveness of your supply chain. This article seeks to highlight the various benefits linked with a third-party logistics provider.

Expertise in Your Supply Chain

One of the key benefits of working with third-party logistics providers is their knowledge of the field. They are up-to-date with the technology used in the sector as well as professional practice. Businesses can rely on the software used by the experts since they can report, oversee, and offer visibility on the whole process.

The third-party logistics professionals provide services within the assigned time and ensure that the right inventory is dispatched to the appropriate destination. With these trucking companies handling the firm’s transportation needs, you can pay attention to core competencies.

You can be sure of diligence in matters regarding logistics.

For instance, in the food sector, firms can outsource their food and beverage logistics. Third-party logistics experts can smoothen out their transportation department. Such firms could also benefit from further assistance, including a food warehouse.

Resource Capacity

Screening of carriers who can handle insurance, requirements, and facilities can be a tedious task. Firms would profit more from trucking companies compared to using in-house resources for their supply chain. When you consult these service providers, you gain access to an extended carrier network and eliminate challenges such as a shortage of drivers.

For a fast and efficient supply chain, you should consider outsourcing a third-party logistics firm. Given that most of these trucking companies have a vast network, they are likely to offer their clients quantity discounts and deliver on time. Third-party logistics have their certified networks that can assist a firm get additional capacity.

A reputable third-party logistics provider has forged connections with many drivers, which means your firm has access to multiple solutions. With help from the sales team in a third-party logistics firm, you can know a variety of already certified carriers. Through these transportation companies, a firm can acquire more significant provisions such as shipping by expedited or rail.

Constant Growth

Both asset and non-asset based third-party logistics firms have a wide variety of resources within reach that enable them to make changes to every stage of the supply chain. They are focused on using the quickest and most efficient approach to ensure their clients are satisfied with the services provided. The trucking companies have the equipment needed to redesign a supply chain as well as the latest technology to facilitate the shipping of goods.

Logistics experts will make sure your firm’s expectations are met by utilizing viable action plans. Towards this end, the software adopted can track the shipping process, highlight and remove any inefficiencies. By doing so, the trucking companies enhance a flawless supply chain.

Just like with most enterprises, customer satisfaction contributes significantly to the success of a brand. Since there may be a scarcity of resources in the majority of the in-house supply chain, firms can be overwhelmed with the pending workload. You can partner with a transportation provider and keep your clients delighted with fast delivery periods and precise orders. It is best to consult trucking companies when dealing with the shipment of goods. By outsourcing help with you can spend more time attending to other areas that can boost the performance of your firm.

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.