Benefits of Hiring A Third Party Logistics Company
A logistics company plans, implement and execute the movement and storage of goods within the supply chain and from the point of origin to the point of consumption. These services may range from the transportation, warehousing, cross-docking, inventory management to freight forwarding and distribution of consignments.
Coordinating the movements of supplies and materials is a globalized process. Logistics may also apply to information, transportation, inventory, warehousing, handling, packaging and distribution within the business sector.
The logistics sector is rapidly progressing and the global market value of 3PL services has surpassed 4 trillion dollars which amounts to the 10% contribution to the GDP. Logistics services provider helps you complete your projects in time through the successful handling of booking, warehousing, packaging and distribution of your projects.
Here are the advantages associated with outsourcing the logistics services to a third-party logistics service provider for your business:
Focus on Core Competencies
Handing over the transportation, shipment, storage, management and distribution of your shipment to a third-party logistics company may save precious hours of manpower work and money which you otherwise would have spent on taking care of your shipment.
The time devoted to the logistics services can be saved and utilized to build on your core businesses. In this manner, you can save the costs of the project which can be devoted to other purposes. You can hand over the logistics services to a company who has an expert and professional staff to ensure the safe delivery of your consignment.
Technology
Utilizing the right technology can help optimize service and drive down costs. Technology systems can automate processes, provide access to a database of carriers, and recognize problems in the supply chain.
Advanced Technology in the logistics sector ultimately brings a wide range of benefits for your project. But as a business company, you cannot invest in technological upgradation. Leave this area of expertise to a logistics company who has already invested heavily on the formation of technological infrastructure.
Scalability
One of the important aspects of the growth of a business is its scalability. To focus on the scalability of your company i.e. its adaptability to meet the changing needs or demands of its users or client, you hand over the logistics sector to the logistics company to take care of it. If you’re doing your due diligence to find the right logistics partner, look for a logistics partner who has the ability to scale with your business. Ensure that as your operations change and grow, your 3PL also scales with you in the long run.
Insurance
The Logistics service provider also ensures the loss incurred during the shipment is not borne by your company. For this, your shipment is insured while in storage and during the delivery and return. Your company will not be credited for the broken or lost items during the shipment.
Timely Delivery
Timely delivery of your consignment is crucial for the success of your business as you have committed to the customer. Decide whether you want refund or credit in case your shipments are not fulfilled on time. Identify the cut off timings for the warehouses fulfilling orders.
In case your order is booked after the warehouse hours are over, then the shipment is delayed till the next day which will affect your market fulfillment and the delivery dates.
Conclusion
Logistics companies have teams which possess tremendous experience in the field of logistics. They have all the necessary expertise in the field of logistics. Their accomplished and competent staff of professionals have all the necessary skills and knowledge for the successful execution of your project.
