A third party logistics provider is built on the foundation of strong human resources who are experts in the logistics field. Having worked with different customers they develop diverse knowledge of various supply chains and best industry practices, thus delivering superior operational experience and service levels.
By engaging a third party logistics service provider, you move away from day-to-day operational activities, and free up your time and energy to focus on strategic initiatives.
Read on to know more on how you can manage your resources more strategically by outsourcing to a third party logistics provider.
Avoid unknown territory
As a business with supply chain volume, you are likely to keep your goods in a warehouse and deploy people to run various activities to distribute it. A cost effective option is to outsource your warehousing to a third party logistics provider. By outsourcing your supply chain you may gain a competitive advantage by having expert resources to manage your operations and thus avoiding potential pitfalls. This supports your own resources to remain lean and more efficiently deployed to provide overall direction and mange the performance of an outsourced partner’s service.
Focus on strategic future projects
When you engage a logistics solution provider to manage you day to day supply chain operations, you have flexibility to direct your own team to focus on strategic projects that help grow the business. As these projects are executed, you have the flexibility to further engage a third party logistics provide to optimise your supply chain further.
Save on huge capital costs
When you outsource your operations to a third party logistics provider, you do not have the huge capital expenses of acquiring a warehousing facility and setting-up the infrastructure in the warehouse. These capital costs are incurred by the 3PL provider and built-in as part of the charges billed to you. This helps you in saving upfront capital costs and brings your risks down.
Save on human resources
3PL experts are highly paid resources that may not need as a permanent overhead expense. It is a wise decision to hire a third party logistics provider that provides these expert resources and your only responsible for a fraction of their costs as a part of the overall 3PL service cost.
Pay attention to your core competence
As a manufacturer, importer and retailer, your core competency is to sell products. It is not in your best interest to develop supply chain competence as this will require time, resources and a huge investment. By outsourcing your logistic requirements to a 3PL provider, your own employees can focus on your industry rather than learning about the operations that would ideally be managed by an expert third party logistics provider.