Some Advantages to Using a 3rd Party Logistics Provider

Posted by Steve on Jan 18, 2017 2:27:43 PM

Some Advantages to Using a 3rd Party Logistics Provider

There are many reasons to partner with a qualified third party logistics provider. Whether you ship small volumes or have complex distribution needs, a 3PL adds value and flexibility to your supply chain by providing some of the following services:

Industry Expertise

This is the first stop on the Supply Chain Optimization Express.  A 3PL provider is knowledgeable of industry best practices, and continually educate themselves on the latest developments in technology, manufacturing and logistics. 

3PL software is capable of advanced reporting, inventory management, and provides visibility to monitor the entire process via online tools. The complexity of these technologies does not translate successfully to the “do it yourselfers". Any successful manager knows when to outsource and when to in source. Additionally, the cost of implementing a state of the art logistics management system, along with the annual technology upgrades in-house is prohibitive to say the least.

3PL experts also employ Just in Time practices to ensure the correct amount of inventory is shipped and received at appropriate intervals to optimize production and to meet increasingly time sensitive customer demand. Outsourcing logistics allows your company to focus on your core competencies and leaves the rest to the experts like those at Land Link Traffic Systems. Our 3PL services will allow you to have peace of mind knowing your logistics needs are being handled by reliable, seasoned professionals.

Resources network

Third Party Logistics providers have a vast resource network available that provides advantages over in-house supply chains. Using a 3PL’s resource network, each step in the supply chain can be executed in the most efficient, cost effective way. 3PLs can leverage relationships and volume discounts, which results in lower overhead and the most optimal service possible. Choosing a good 3PL provider allows your company to benefit from resources, which are largely unavailable in-house.

Scalability and Flexibility

An additional benefit of using a 3PL provider is the ability to scale space, labor and transportation, according to inventory needs. Businesses with seasonal periods can enjoy stress free transitions between industry ups and downs, having the ability to utilize more space and resources when needed. Using a 3PL provider allows your business to grow into new regions without barriers. Furthermore, as you grow, a 3PL provider can help you scale as they have the resources to seamlessly support growth into new markets.

Ongoing Optimization

3PL providers have the resources at hand to make adjustments and improvements to each link in the supply chain. Sophisticated management software can analyze and monitor practices and make adjustments in real time to eliminate inefficiencies and streamline the supply chain. Outsourcing 3PL services will ensure that continuous improvements are made to your logistics process. 

Third Party Logistics providers can help maximize profits, reduce wait times, and improve customer service.  Today, 86 percent of fortune 500 companies use 3PL's to manage their supply chain. Regardless of company size the 3PL model has been proven effective by the worlds largest retailers, distributors and manufacturers.  It bears repeating; know your in-house capabilities.

The decision to not outsource your logistics function can have a devastating financial consequence on your organization.  Consult the Logistics professionals at for expert guidance.

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Topics: Third Party Logistics