The COVID19 pandemic affected the entire world, including a number of different industries. The virus spread throughout populations across the world, and subsequently forced entire populations into lockdown. As such, the business world was disrupted in a major way, with the supply chain for many companies also being disrupted. It caused logistics processes, and the supply chain subsequently, to be slowed down, with great difficulty surrounding the procurement of materials and the shipping of products worldwide. People were more wary of what entered their borders, and the processes involved in the supply chain increased tenfold as a result. This, of course, slowed down the logistics process, causing supermarkets to go out of stock, customers to take longer to receive items and so on.
So, how do 3pl companies come into play? How exactly did they help to keep the supply chain up and running?
Read on to find out.
They Drove Cost Savings
During a time of uncertainty and instability, people were reluctant to spend, including companies. Driving cost savings was absolutely crucial in order to allow for companies to have enough to keep themselves afloat in case the worst happened. As such, those using 3pl companies for their supply chain typically drove further cost savings than others. The supply chain involves a multitude of different processes, which can be expensive when handled on your own. From hiring warehouses, to employees and other professionals to manage logistics and so on, all of this costs a significant amount of money overall. With 3pl companies, all of these aspects are handled by outsourced professionals with access to high quality resources. Thereby, companies using 3pl companies typically saved a lot more on costs compared to those that didn’t.
Kept Shipments of Products on Time
During the pandemic, countries became much more wary of what was entering their boarders. To add to this, there was usually a delay in the logistics processes/supply chain, and processing of documentation. Consequently, this often made shipments late. Those handling their supply chain with 3pl companies, however, often had their shipments of products kept on time. This is largely because of the access to resources, equipment and connections that these companies offer. With this, they are available to leverage technology and other resources to keep the shipments on time, by streamlining the logistics process and focusing on planning ahead for shipments.
Ability to Make Quick Decisions
The pandemic and the volatile situation it created required quick decisions to be made due to last minute changes, in order to keep the supply chain running. Those without 3pl companies would need to rely on themselves to make these decisions regardless of how busy they were with other parts of the business. As such, these companies largely suffered. Those who had their supply chain handled by 3pl companies, usually were fine. This is because outsourced professionals only handle the logistics processes, and will be made aware of any changes and an use their experience to make quick decisions. Because they are highly used to this environment, and have access to information, they were able to make decisions which were intelligent.
Overall, the COVID19 pandemic disrupted entire industries, including the supply chain for many companies. This caused significant delays in the supply chain, which ultimately caused problems for companies and consumers. Those with a 3pl company would largely have had smooth running operations, in comparison to those that did not.
As such, our team here at BCR highly recommends our services to any companies, as you never know what might happen and when you will need help. With our professional services, we can guarantee that your business will always run smoothly, no matter what.
Contact us now for a consultation!