5 advantages of hiring a third-party logistics provider

Third-party logistics providers typically specializes in integrated operations of warehousing, transportation, value added services that can be scaled and customized to customers' needs, based on market conditions, to meet the demands and delivery service requirements for their products

In the last century, the product selling process involved two parties, manufacturers and suppliers. But now, in this digital economy, a third party has emerged that manages and ships the inventory. They are necessary because most brands simply can’t manage all aspects of the business from product manufacturing (sometimes retailing) to marketing, sales, inventory management, and shipping. The 3PL providers help them take these services off their hands, allowing them to work on expanding their business. Utilizing a 3PL provides businesses with a reliable logistics advantage, and maximizes profitability through combined knowledge and resources.

Some of the logistics services provided by 3PLs are:

  • Transportation services.

  • Warehousing and warehouse management services.

  • Shipping and Freight management services.

  • Customs clearance and freight forwarding.

  • Packaging and packing.

The following are 5 advantages to using a 3PL provider -

  1. Cost and time saving

    Using a 3PL provider eliminates the need to invest in warehouse space, infrastructure, technology, transportation and manpower to execute the logistics process. 3PL providers can allow your business to build a global logistical network with lower risk and higher return. Additionally, 3PLs save you the time needed to carry out the supply chain. There is no need to worry about the paperwork, billing, audits, and optimization involved to get your goods where they need to go. Outsourcing logistics services saves time and money for your company.

  2. Scalability and Flexibility

    A benefit of using a 3PL provider is the ability to scale labour, space 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.

  3. Resource Network

    3PL 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 fastest possible service. Choosing a 3PL provider allows your company to benefit from capabilities and the resources which are unavailable in-house.

  4. Low Capital Commitment

    When a company outsources logistics functions to a third-party logistics firm, it no longer needs to worry about maintaining its own warehouses and transportation systems. Not only will the third-party logistics firm manage warehousing, transportation and other operations more competently and with more expertise than the client would on their own, but the amount of capital needed to hire the third-party firm is generally less than would otherwise be needed for logistics operations.

  5. Focusing on Core Skills

    A third-party logistics company specializes in logistics issues and operations. It gets difficult for a company to have expertise in every single sector or division. When hiring a third-party logistics firm, you are hiring the experts. This can free the client to focus time, energy, and resources on areas of core competency. Instead of diverting capital, personnel and other assets to managing logistics operations, those resources can be used for the company’s actual business.

    Incorporated in 2005, KD Logistics is a leading third-party logistics (3PL) service provider with a pan India presence. Hire the best 3pl service provider for the seamless running and success of your business today!