The Best Benefits You Get With Third-Party Logistics

by Michael Kotendzhi | Logistics
The Best Benefits You Get With Third-Party Logistics

As your business grows, warehouse storage will be important to have continued success. A commercial logistics company can transport your inventory and provide many other benefits as well. Here are the best benefits you can get from a third-party logistics facility.

Save time and money

With a third-party logistics facility, you can save money by not having to hire additional workers, build warehousing, install technologies, and organize transportation. All of that is taken care of for you. In addition, you have time to focus on the parts of your business that you need to. You don’t have to think about billing, paperwork, training, and all of the other things involved with supply chains.

Because of the complexities that come with warehousing and shipping, it saves time to let a company that specializes in that do it for you. Third-party logistics companies have the experience and connections to make the process of warehouse storage and transportation run smoothly. Additionally, they keep up with the latest logistics technology to continually give the best storage and transportation service. For example, they would know that trucking companies primarily operate class 8 trucks, which weigh 33,001 pounds and greater. Expert knowledge like that can be very valuable to your business.

Scalable and flexible

You’re not always going to have the same amount of inventory in stock all year. Third-party logistics companies give you the ability to scale when needed. For example, let’s say you’re looking to have a food warehouse or food and beverage logistics. In the food industry, you might have certain inventory that’s seasonal. During the seasons where your product is not as sought after, you can scale space, transportation, and labor based on the fluctuation of your inventory. That way you can always have the necessary resources and space for both the busy and slow times.

GPS fleet tracking

The third-party logistics industry has gotten more technological in recent years. This is a huge benefit especially for those needing food and beverage logistics. If your food and beverage items are perishable, it’s important that trucking companies deliver your items on time. GPS fleet tracking lets management view truck activity from a mobile device or computer.

Trucks can be located in real-time, and every location it’s traveled throughout the day or week is saved. GPS fleet tracking also gives automatic alerts that notify when a vehicle has entered or exited a specific location. That way you can know that all of your products are being picked up and dropped off on time. In addition, if a truck is caught in traffic and being delayed, a dispatcher can re-route the truck. This gets the driver to the location quicker, and more tasks get done.

For continued business growth, using a third-party logistics facility can give you all the warehouse storage and transportation you need to expand. From saving time and money to GPS fleet tracking, there’s no shortage of benefits that’ll help your business in the long run.

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.