What is Third Party Logistics?
Also known as 3PL, third party logistics provide outsourced logistic services.
There are many benefits companies gain by outsourcing third-party logistics. This is because it offers a solution for assembly, packaging, warehousing and distribution all at once. Making use of third party logistic service providers results in profitability and ease by combining resources and knowledge.
The following are benefits that companies can gain from third party logistics:
Save on Costs: 3PL minimises the overall logistic costs. Included in the 2016 State of Logistics Outsourcing report, 93% of third-party logistic users confirm that their relationship with their outsourced logistic service providers have been successful. A total of 70% of 3PL users agree that it has contributed in reducing logistics costs.
Utilising 3PL allows you to avoid distribution infrastructure investments. Because they already have invested in buildings, you don’t have to. You are able to leverage freight buyer power because 3PLs can accomplish lower operating costs with each load by leveraging their average freight spend.
Companies Focus & Performance: Companies can gain perspective of their primary focus. Third-party logistic companies are commonly faced with challenges with customers and different industries. This also allows you to focus on your core business because supply chain management is an intensely sophisticated discipline that entails experts to do well.
Customer Service: Around 83% of third-party logistic users report that their use of 3PL has contributed to improving customer service.
Scalability & Flexibility: Using a 3PL allows the ability to scale space, labour and transportation according to your inventory needs.
If you’re looking for a third-party logistics company, we have the perfect solution! Bridgewater Logistics provides third-party logistics to multiple clients from our facility in Kempton Park. Bridgewater Logistics is well situated for your local and national requirements. We provide personalized pickups and deliveries. Contact us for all your logistics needs today!