Despite being around since the 1970s, some businesses are just now learning about third-party logistics (3PL) companies. As outsourcing is becoming increasingly popular, it is clear that there are some major benefits to using their services. These advantages are even more evident with the boom of e-commerce and on-demand shipping needs. As a result, surveys show that over 80% of businesses outsource some aspects of their domestic transport and shipping today. In fact, many now utilize 3PL providers like Fratogo to handle all their supply chain logistics needs. As true partners rather than transactional vendors, these companies create the best environment for businesses to thrive.
In essence, 3PL providers typically offer comprehensive, one-stop solutions for enterprise supply chain needs. This can routinely include packing, warehousing, transportation, order fulfillment, and more. Of course, not every business wants start-to-finish logistics support, with some of them only needing assistance with some specific aspects. In these cases, 3PL providers like Fratogo can tailor their services to specific aspects of the supply chain where help is needed. Given this, there are many advantages to using a quality 3PL provider. To better appreciate why outsourcing logistics services to such companies is worth considering, the following list includes the most common advantages.
1. Opportunities to Save Money – When it comes to using a 3PL provider, the most notable benefit involves cost savings. By outsourcing logistics services to a quality company, businesses no longer have to invest in their own supply chain operations. Costs related to transportation, warehouse storage, staff, and software are reduced. Plus, quality 3PL providers like Fratogo are able to leverage their vast logistics network in price negotiations. As a result, businesses get to enjoy some nice discounts that they would not receive otherwise.
2. Access to Logistics Expertise and Experience – It’s no secret that supply chains and logistics have become incredibly complex. This is especially true when businesses pursue overseas and international markets. Therefore, it’s not surprising that 3PL providers can help with these complexities as a result of their expertise and experience. Knowing the ins and outs of transportation docs, importing and exporting, regulatory compliance and more is notably beneficial. Fratogo has helped numerous businesses access new markets by leveraging their inherent insights. This is another reason why outsourcing to 3PL providers may be a great idea.
3. Better Resource Utilization – No matter what type of business you’re in, resources are going to be limited. This not only pertains to materials, products, and supplies but also human resources. One of the benefits of using 3PL providers relates to how you use the staff and executives your business employs. Is your business best served by having them deal with logistics? Or would you thrive more if they focused on your business’s core competencies? By taking over businesses’ logistics needs, Fratogo often witnesses their markets and customers grow. Because businesses are able to use their existing resources in a more productive way, success soon follows. This is where outsourcing logistics can really make a difference.
4. Risk Mitigation – When it comes to dealing with delays in shipping and delivery or product damage, 3PL providers have seen it all. This is especially true for comprehensive providers like Fratogo, who offer total logistics services. As a result, they are best equipped to handle such mishaps, which relieves businesses of substantial risk. These providers are also routinely insured against various unforeseen circumstances. This is yet another reason why outsourcing to a 3PL provider makes sense.
5. Increased Flexibility and Scalability – In any market, consumer demand can fluctuate over time. Sometimes, these fluctuations occur so quickly that it can make it difficult for businesses to respond in a timely manner. As a result, businesses may miss out on great opportunities for growth because of a lack of flexibility and scalability. However, this can be alleviated by using 3PL providers because they enjoy such large logistics networks. For companies like Fratogo, this means a capacity to easily accommodate market and customer fluctuations. By taking this approach, businesses are much less likely to lose out to a competitor.
6. Improved Customer Service – The other noteworthy advantage that 3PL providers offer businesses relates to customer service. By leveraging networks and expertise quality logistics providers can better ensure your customers’ needs are met. In turn, customers are satisfied and become reliant on your brand. Of course, the key is finding a quality 3PL provider that has a reputation for great customer service. But once you find one, you’ll appreciate just how beneficial this can be for your business.